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Hedley Byrne were advertising agents placing contracts on behalf of a client on credit terms. Hedley Byrne would be personally liable should the client default. To protect themselves, Hedley Byrne asked their bankers to obtain a credit reference from Heller & Partners (‘H&P’), the client’s bankers.
Hedley Byrne sued Heller & Partners for negligence, claiming that the information was given negligently and was misleading. Heller & Partners argued: Lack of a direct nexus, also known as proximity in negligence law (nor an assumption of responsibility of a type established in law) of duty of care.
Oct 6, 2020 · Case: Hedley Byrne v Heller and Partners (1964) Pure economic loss. This case established that it may be possible to make a claim in negligence for pure economic loss where there is a special relationship assuming responsibility between two parties, despite them not being in a contract.
Jul 7, 2023 · In the case of Hedley Byrne v Heller 1964 ac 465, the Hedley Byrne principles of special duty were born. These principles laid down were requirements for which a claimant would need to satisfy to establish a duty of care for a negligent misstatement causing pure economic loss:
LER & PARTNERS LIMITED [1964] AC 465House of Lords – 28 May 1963FACTSHedley were adverti. ing agents who placed expensive forward advertising orders for Easipower. Hedley would be personally liable for the cost of the orders, so t. ey asked their bankers to inquire into Easipower’s financi. l stability. The bankers made inquiries of Heller ...
The direct effect of Hedley Byrne was to impose liability in tort where previously there had existed no liability of any kind. In the case of a pre-contractual misrepresentation, the representee has a remedy in contract, in theory if not always in practice, and so the.
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On 11 November 1958, H&P responded by stating that Easipower Ltd was a ‘[r]espectably constituted company, considered good for its ordinary business engagements’. The letter was prefaced with a disclaimer that the letter was ‘without responsibility on the part of the bank or its officials’.
