Hedley Byrne & Co Ltd v Heller &

Partners Ltd

Abiola Cunningham
Camica Wallen
Garvin Granger
Hutson St John
Kerlysse Hilare
Onika Blandin
Nigel
Svetlann Jackson





Lord Hodosn,
Lord Devlin
Lord Pearce
Key Words
Negligent misrepresentation Assumption of responsibility
Hedley Byrne & Co Ltd v Heller & Partners Ltd

Court House of Lords
Decided 28 May 1963
Judge(s) sitting
Lord Reid
Lord Morris of Borth-Y-Gest,
CASE SUMMARY
Hedley Byrne was a firm of advertising agents. Their client, Easipower
Ltd, put in a large order. Hedley Byrne wanted to check their financial
position, and credit-worthiness, and subsequently asked their bank,
National Provincial Bank, to get a report from Easipowers bank, Heller
& Partners Ltd., who replied in a letter that was headed, "without
responsibility on the part of this bank"
It said that Easipower was, "considered good for its ordinary business
engagements".
The letter was sent for free. Easipower went into liquidation and
Hedley Byrne lost 17,000 on contracts. Hedley Byrne sued Heller &
Partners for negligence, claiming that the information was given
negligently and was misleading. Heller & Partners argued there was no
duty of care owed regarding the statements. There was an express
disclaimer of responsibility and there can therefore be no liability. This
case established the doctrine of negligent misrepresentation, but in
this case the disclaimer effectively barred the claim.

FACTS
Plaintiff (Hedley Bryne) was an advertisement agency,
working for a company called Easipower.
The Defendant ( Heller) was the Banker of Easipower
The Plaintiff was concerned about the financial
position of Easipower, and sought help through their
bankers, who obtained information through the
Defendant.
The Defendant, through statements and documents
marked without responsibility on the part of this bank,
replied that Easipower is in good a financial position.
This was done a couple of times.

FACTS
Plaintiff relied on this when making investments and
later Easipower went bankrupt, causing the plaintiff
financial loses.
Hedley Byrne lost 17,000 on contracts.
Hedley Byrne sued Heller & Partners for negligence,
claiming that the information was given negligently
and was misleading.

ISSUES
I. Did Heller, who was not in a contractual or fiduciary
relationship with Hedley, owe a duty of care to
Hedley to not give negligent advice?

II. Did the statement by Heller that the reference was
given without responsibility exclude Heller from
being liable for negligence?




Negligent Statements
Special relationship?
Pure Economic loss?
Duty to care?
Breach of duty?


JUDGEMENTS
LORD REID:
I am therefore of opinion that it is clear that the respondents never
undertook any duty to exercise care in giving their replies. The
appellants cannot succeed unless there was such a duty and
therefore in my judgment this appeal must be dismissed.

LORD DEVLIN:
A man cannot be said voluntarily to be undertaking a responsibility
if at the very moment when he is said to be accepting it he declares
that in fact he is not. The problem of reconciling words of
exemption with the existence of a duty arises only when a party is
claiming exemption from a responsibility which he has already
undertaken or which he is contracting to undertake. For this reason
alone, I would dismiss the appeal.
PRINCIPLES ESTABLISHED
Lord Oliver developed the Hedley Byrne principles thus: the
making of a statement will give rise to a duty where

advice is sought in circumstances where the adviser is
aware, "actually or
inferentially," of the purpose for which the advice is sought;
the adviser is aware that the information will be
communicated to the other party;
the adviser is aware that the recipient will act on that
advice; and
the recipient so acts to his detriment.
CONCLUSION

11
Hedley Byrne v Heller (1964)

no need to establish a contractual or fiduciary
relationship
person giving the information must be of special skill
(or hold themselves out as having such skill)
assumption of responsibility by the speaker
reasonable reliance by plaintiff
no disclaimer of responsibility


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