Hedley Byrne & Co Ltd v Heller & Partners Ltd
[1964] AC 465 · [1963] UKHL 4
House of Lords · 1963
Headnote
Recognised liability for negligent misstatement causing pure economic loss where there is a special relationship and an assumption of responsibility.
Bench
Lord Reid, Lord Morris, Lord Hodson, Lord Devlin, Lord Pearce
Facts
Bankers gave a favourable credit reference about a client, subject to a disclaimer. The advertising agency relying on it suffered loss when the client failed.
Held
A duty can arise from an assumption of responsibility, but the disclaimer here excluded it.
Key passage
“Where a party giving advice knows or ought to know that it will be relied upon, a duty of care may arise from the special relationship between them.”
[1964] AC 465, 486 (Lord Reid)
Citation formats
OSCOLA
Hedley Byrne & Co Ltd v Heller & Partners Ltd [1964] AC 465 (HL) 486.
Neutral
Hedley Byrne & Co Ltd v Heller & Partners Ltd [1963] UKHL 4.
Short form
Hedley Byrne (n 1) 486.
Authorities considered
- Candler v Crane, Christmas & Co
[1951] 2 KB 164