LANDMARK CASE

Hedley Byrne and Co. v. Heller and Partners

[1964] AC 465 · House of Lords (UK) · Torts

At a glance

Citation: [1964] AC 465
Court: House of Lords (UK)
Area of law: Torts
In one line: Yes, where there is a special relationship and reliance, though here the disclaimer protected the bank.

1 Facts

A bank gave a careless credit reference with a disclaimer, causing financial loss.

2 Issue

Can there be liability for negligent statements causing pure economic loss?

3 What the court decided

Yes, where there is a special relationship and reliance, though here the disclaimer protected the bank.

4 Why it matters

The foundation of negligent misstatement law.

5 Think about it

Why did the disclaimer matter?

6 Analyse it yourself

Read the full judgment from an official source or a law database, then brief it in seven steps: facts, issues, arguments, decision, ratio, obiter and significance. Always check the citation before you rely on it.

7 More cases on Torts

Ashby v. White (1703) 2 Ld Raym 938
Caparo Industries v. Dickman [1990] 2 AC 605
Charan Lal Sahu v. Union of India (1990) 1 SCC 613
Donoghue v. Stevenson [1932] AC 562
Gloucester Grammar School Case (1410) YB 11 Hen IV
Kasturilal Ralia Ram Jain v. State of Uttar Pradesh AIR 1965 SC 1039

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