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Hedley Byrne & Co Ltd v Heller & Partners Ltd

[1964] AC 465 · [1963] UKHL 4

House of Lords · 1963

Good law

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