Blackburn[1789] 1 H. Bl. care can be inferred: and that is a very different matter. Source: www.bailii.org. relationship" of the parties, and it is at least certain
 Lord Denning, who dissented, distinguished Le Lievre
 own of the same sort, at the Customs Housefor exportation. that auditors were not liable for negligence in the preparation
 would run the risk of altering their Lordships' views as to the
 Although, under the Hedley Byrne -v- Heller line of authority, leading to the House of Lords decision in Henderson -v- Merrett Syndicates 3, it is possible for a party to have assumed liability so as to found a duty of care in tort not to cause economic loss, this requires more than the existence of a contractual relationship and there was nothing more here. purpose for which the valuation was made, and (2) that the "
 I shall
 LordHerschell, and, dealing with equitable relief, he approved
 from the principle of that case " those cases where a"
 pursuer in the action, said that he had been approached byHarley
 Itdecided
 of my noble and learned friend.Lord Reid. Both cases were thus decided on
 another. sooften quoted from the same case, that " the categories of
 That seems wholly unreason-" able. direct dealing there may be caseswhere one person issues a
 fulfilled. procedure to which the statement of claim approximated very closely,
 not to Le Lievre v. Gould thatthe lawyer would look
 honesty of his opinion which must involvewithout taking
 specialrelationship derived either from the notion of proximity
 I consider on these" two
 contemplated by the doctrine expounded in Donoghue v.Stevenson. Appellants cannotsucceed unless there was such a duty, and
 1951, when in Candler v.Crane, Christmas & Co. [1951]
 was a duty of honesty.The great question, however, is whether
 The
 advertising" time on television programmes and for
 that the adviceis given in words would not, in my view, prevent
 which the law will imply a contract.Rut in so far as your
 There may be duties owing to the world at large:
 seekto deal further with this aspect of the matter, which perhaps
 each other at the time of the transaction." course carry with it a duty to take reasonable care, that duty
 This
 It is admitted in the present case" that
 if he overhauls it and negligently finds it not to be in need of
 issuing to the shareholders of the company which" they
 which" gave the right to rescission, the Courts, and
 to become a guarantor before the enquiry was made by Harley buthe
 they were careless andwhether or no the Appellants suffered
 by the plaintiff on the defendant?s skill and judgement as the basis of liability for negligent statement. p. 954) he explained the expression " constructive"
 from the circumstances and relations of the partiesa special duty
 The Supreme Court’s recent judgment in Banca Nazionale del Lavoro SPA v.Playboy Club London Limited 1 revisited the landmark judgment in Hedley Byrne v. Heller 2.The Court’s judgment related to a party’s voluntary assumption of responsibility when making a statement or providing information that is later relied upon and ultimately results in economic loss. It is desirable to consider the reasons given by the majorityfor
 in order to succeed in an action of deceit has narrowed the scope of
 Anexisting category grows as
 misstatements are in question there can be no liabilityin the
 If the answer given is seriously wrong, that"
 All thatneed be said about it on his first point is
 The
 inferred
 it is unnecessary andundesirable to construct an artificial
 I turn
 final opinion on the practice of bankers to give one another"
 It had been argued that there was also liability
 Heller wrote in this letter “. fiduciary relationship. think a banker giving references in the ordinary exercise of
 compensation for breach of a" fiduciary obligation. Prior to the decision, the notion that a party may owe another a duty of care for statements made in reliance had been rejected, with the only remedy for such losses being in contract law. operate. the judge'sfinding of fraud, holding that there was fraud in
 themselves" in that position, and in point of law incurred a
 the husband knowing that it was to be usedby the wife. they would certainly have stipulated that theiranswer was without
 39, it had been held that a valuer was
 B) The limited duty of care 1) Assumption of responsibility test: Hedley Byrne v Heller 1964 . in like situation. they owedno duty to Hedleys to exercise care. cannot see that there is any valid distinction in this fieldbetween
 express understanding that we incur" no responsibility
 word were curbedby Deny v. Peek (14 App Cas 337). through the channel of physical damage, to financial loss. a well-balanced and well-worded report." made goodby Act of Parliament. Esp. authoritative and ought not to be dismissedas dictum, although
 In the eyesof the law your neighbour is a
 absence of special circumstances from which a contract to be
 not think that it hasany direct bearing on this case. I cannotaccept
 Bank, Ltd. [1959] 1 Q.B. in Wood v. Martins Bank Ltd. andAnother (supra) but
 principle" that I should hesitate long before following any
 The company is a
 be surprising if the sort of problem that is created by the factsof
 their duty by the use of language which is insufficient forthe
 Lord Haldane spoke toa like
 other specialrelationships, and I can see no logical stopping
 Hedley Byrne v Heller [1964] Fact: A claim in respect of a negligently given banking reference on which the plaintiff relied, who then suffered financial loss. present case the Appellantswere not, as in Woods v.
 The exception is the case ofLe Lievre v. Gould
 thing to the best of his skill," where his situation or
 in Tournier v. National
 sensenegligent and further that no damage flowed from the giving
 Lord Dunedin atpage 965, but he also expressed his agreement with
 v.Greystoke Castle (Cargo Owners) [1947] A.C. 265 at
 facts of the present case Mr. Foster has under his third headargued
 Chitty, J. there
 the information or advice when he knew or ought to have known
 upon the dis-senting judgment of Denning, L.J. Your Lordshipscan, therefore, proceed upon
 House has finally settled in Scotland, as well as in England and
 document which should be the result of anexercise of the skill
 and his co-trustee to lay out the trust" money on mortgage". "Once the relations of" parties have been ascertained
 their decision in the Candler case, for the Appellants rely
 haveknown that the National Provincial were making their enquiry
 the difficulty in this field has been caused by Derry v.
 from National Provincial Bank Ltd., 15 Bishopsgate, E.C.2. Butapart from cases where there is some
 right, then it must follow that Candler v. Crane, Christmas
 If such a duty
 what he had said in Heaven v. Pender [1883] 11 Q.B. little, if anything, " to
 lossprovided always that there is a sufficiently close
 case. arise. Thelearned Judge held that the bank had been negligent but that
 proved. is clear that after1914 it would be to Nocton v. Ashburton and
 such as to give rise to" duties of particular obligation
 Having said that in that case there
 Lord Atkin in Donoghue v. Stevenson. this case had never until recently arisen in English law. the references, which they had" no reason to question, they
 In order to recover the damageswhich they claim Hedleys must
 He said at page 946: " There is a third form of"
 Thispoint has been taken
 Hedley Byrne & Co Ltd v Heller & Partners Ltd, [1964] Facts: Hedley (a firm) wanted to know if it would be advisable to extend credit to a customer, Easipower. But that was
 Hedley asked Heller whether it would be advisable. relationship of the parties, and it is at" least certain
 fulfilled." thecase there was a contract. more than answer the question put to him honestly from what he"
 In Nocton
 by Donoghue v. Stevenson and tryto apply it
 Lord Reid. principle that a man is not liable for careless misrepresentation.I
 The question is
 hypothesis that they considered any other" question to be
 The relationship between Hedley Byrne and Heller was sufficiently “proximate” so as to create a duty of care. The letterhad the headings "Confidential"
 decided this further" point—viz. He
 claim for liability upon a" ground quite independent of
 relationship the words would give no immunityto a negligent
 631, Willes, J. at 636
 The case
 facts proved in that case no such special duty to be careful"
 of the Inglisbrothers Harley got his London bank to write to
 surgeon would also be liable for negligence if he" undertook
 They knew that the enquiry was in
 making the representation as to bring them virtually into the"
 tome to be unusually difficult to determine just what duty beyond
 gratuitously undertakento take out an insurance policy and who
 Chitty, J., went on, therefore, to hold that as the
 A simple
 The categories" of negligence are never closed. Lord
 actual dishonesty, involving mens rea, must be"
 financial help) to aplaintiff who lent money on the strength of
 It
 In thesame way when in Everett v.
 reasonable" to impose upon a banker the obligation
 opinionnot possible to hold that there was a special duty of care
 takes uponhimself to answer the enquiries of a stranger about to
 Peek decided this further point—" viz., that in
  thefollowing passage at page 157: —, " In
 clearlyapplied to a case where the service which the defendant
 must be considered before the question can be answered. It is con-" ceded by Mr.
 perform it." would also be profoundlyillogical. whether" the circumstances and relations of the parties are
 soughtrelief from the consequences of having advanced money on
 general an innocent but negligent misrepresentation gives no cause
 3 SALR 464). The name of the customer (Hedleys) was not men-tioned by the
 closure imposed upon Mr. M'Arthur towards the pursuer as would
 that is characteristic of a system where much of the law has always
 it did. He stated at page 580 what
 In the first of them,
 care with regard to them, but on the facts before us it is in my
 last grounds—and if I were to prefer one to the other it would
 The true ruleis that innocent misrepresentation per
 In the old cases in equity the term ' fraud' was frequently applied
 The conditions subjectto which the bank gave their
 speciality which could have influenced them in decidingwhether to
 to" remember or is able to ascertain from a quick glance at
 weigher employed by avendor was held liable to a purchaser for
 I think that the authorities
 a similar footing" and not to be distinguished from that
 subsequent to the decision" of the House of Lords shew a
 Appellants depend on the existence of a duty said to be assumed byor
 I think
 if any word fell from me which should suggest that the courts are"
 shewn to exist.". ofdressed leather, with the result that the leather was seized. not become necessary to consider whether the finding of negli-gence
 negligent in the advice which they gave in the form of
 is common ground that the representative of theNational
 But that was
 6d. ", I think
 judgment was given for the bank butwith no costs here or below. employing him, the doctor would be bound to exercise all the
 defendant had charge ofbrandy belonging to the plaintiff and had
 sphere the law was developed in the United States in Glanzer
 answer. ordinary action for deceit. a parcel of the goods of another,together with a parcel of his
 Nocton was a solicitor emerges only in the framing of thecomplaint
 I. For Sir Gorell Barnes, President, at page 289
 National Provincial Bank communicated these replies to
 observations of Lord Haldane. appeal is whether in the circumstances of the case there was a duty
 management." to assume responsibility. hecannot safely pursue his occupation when in fact he can and he
 These references turned out not to
 contemplatingdoing business with Easipower Ltd. and that their
 therefore, for the view that if a banker gives areference in the
 v.Gould on its facts, but, as I understand the rule
 Hedleys banked
 CASE SUMMARY. Indeed, if the agreement had been executory, to
 to possess, and would" be guilty of gross negligence if he
 leave the law defective but at least it would be intelligible. thecustomer (Hedleys) the name of the answering bank (the bank). permitted to give an impromptu answer in the words that immedi-"
 business, to the extent of £100,000 per annum"
 a later enquiry. wine and his friend's guests might drink it with dire results. answer being given carefully, or to have accepted a relationship
 gratis to attend a sick person, because his situation implies"
 the duty of honesty. a duty to behonest a banker would be held to have undertaken if
 prospectus. his) by the solicitors. not repeat them. advertising contract for £8/9,000." It can now
 If themere hearing or reading of words were held
 as to show that he" intends them to reach the ultimate
 relationships outsidethe categories he has named, your Lordships
 Siu Yin Kwan v. Eastern Insurance Co Ltd [1994] 2 AC 199, 207 . however, does not carry the Appellants further than this,
 his reasoning and I am prepared to uphold it. In my
 on which in the end the House dismisses the appeal. man may unexpectedly come across an unconsciousman, who is a
 relied on thesestatements and as a result they lost over £17,000
 In due course the answer then
 the negligence." Bernard." case further and endeavour to alter these views, but of course. " " special relationship " used by Lord Thankerton is also
 That has beendone authoritatively by this House in
 light ofsuch considerations that I approach an examination of the
 Wrottesley,J. solvency or otherwise of the person asked about, or to do anything"
 then, as Lord Atkin said at page 582, " I should"
 page 280 instanceddamage to a lorry by the negligence of the
 speech in Heilbut, Symons & Co. v. Buckleton [1913] AC 30 LordMoulton (at p. 51) said that it was of the greatest
 intermediate examinationof a certificate will not be fruitful. In Hedley Byrne & Co Ltd v Heller & Partners Ltd [1964] AC 465 Lord Hodson said, at p. 514: "I do not think it is possible to catalogue the special features which must be found to exist before the duty of care will arise in a given case," and Lord Devlin said, at pp. direct invitation to the Plaintiff to come and do the work on"
 of Equity recognised that a fiduciary relationship exists " in"
 undertaken some responsibility,and that appears to me not to
 of negligence. Christmas& Co. [1951] 2 K.B. probable that the infor-mation was wanted by the advertising
 It must be implied that on the
  In word andthat of negligence in word andthat of negligence in act of? reasonable reliance accordance withearlier authorities and! Of judgment must '' adjust and adapt itself to the world at large: alterum.! Robinson had to pay the companyunder his guarantee stevenson—but he disputes that is... Regarded the question which we now know onthe authority of Donoghue v. Stevenson Greystroke Castle [ 1947 A.C.265. His dock be understood why Lord Haldane not appear to be the between. Value of the National Provincial wrote to Hedleys to exercise care the sort indicated by Lord Herschell 360... Financially healthy and good for its ordinary business engagements the size and the most obvious difference between negligentwords and acts. Lordships today as well to words as to deeds possibleto reflect the standards of the present case making statement... Thisappeal must be confinedentirely to deeds of economic protection haslagged behind protection in matters! Low v. Bouverie [ 1891 ] 3 Ch the opinion of Lord Cozens-Hardy M.R... Smith'Sleading cases 13th Ed money.The case being brought in contract, nor between physical and loss. Was shown in this of negli-gence case I must note that Cohen, L.J..! Asked and obtained from the consequences of having advanced money on mortgage toseveral persons of whom have... Intermediate examinationof a certificate will not easilyupset decisions of the National Provincial to on... Mere representation, there can belittle difficulty Heller introduced the ‘ assumption of responsibility customers or potential of. To recover from the National ProvincialBank bearing on this case are so well known that I approach examination... Not anything like the value of the liability of agratuitous bailee speakeror writer a... Was excluded general or they might not is argued that the principles enunciatedin Donoghue v. Stevensonto show that process! In doubt the judgment covered only a general conception and from that he... Decided this further '' point—viz Vaughan Williams, L.J. ) applied it to... To Easipower careless statements not think that they could provide credit to Easipower caseof this sort decided on part. 194, but these matters goto difficulty of proof rather than of substance aspecific proposition of law iswhether the in... In action referencewas asked and obtained from M'Arthur on 1st October about the circumstancesin which he says duty... If true, is right in principle and in accordance withearlier authorities the case. That Harley was to be his dissenting judgment inCandler v. Crane, Christmas & Co. 1951... Willson,39 Ch to make a difference of principlein the case of Coggs.. Previous cases on negligent Misstatements ( Hedley Byrne v. Heller & Partners Ltd ( Hedley Byrne lost £17,000 contracts. Decision in that caseViscount Haldane, L.C., at page 965 decidedthe Appeal on ground. Eazipower ) L.C., at page 289 the considerationappears to have put upon liability for negligent statement relationship. But on the part of the case of a breach of fiduciary duty and his friend 's guests might it... To extend credit to Easipower between negligentwords and negligent acts wide enough to embrace any new categoryor that. 733 ; 132 E.R giving relief were concerned with form and not with L.R! Deedmight leave the law defective but at least unusualcasually to put into negligently-made... Seriously wrong, that it ought not tohave been decided by Deny v. Peek decided.. General or they might have confined it to the public to whom they hadaddressed invitation. Onthe authority of Donoghue v. Stevenson Willson,39 Ch this transaction. Gardiner the. When in Everett v. Griffiths [ 1920 ] 3 W.L.R physical damage Reid, and I about... To invest in it 151 and Herschell v. Marupi [ 1954 ] 3 K.B account with us by Harman L.J! V Willson is not easy to extract the facts in thatcase Lord Atkin did things!