Hedley Byrne v Heller

Hedley Byrne v Heller is a 1964 House of Lords decision that recognized liability in tort for negligent misstatements causing purely financial loss. The advertising agency Hedley Byrne relied on a credit reference about a client, Easipower, supplied carelessly by the bank Heller and Partners, and suffered a financial loss when the client defaulted. The House of Lords held that a duty of care can arise from a special relationship of trust and reliance between parties even where there is no contract between them, so a careless statement made in that relationship can found liability for the resulting loss. On the facts Heller escaped liability because its reference carried an express disclaimer of responsibility, but the case established negligent misstatement as an actionable tort and remains the starting point for English law on liability for professional advice and information.