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Law of Torts II CASES – Economic Loss (Lecture 10)

Law of Torts II CASES – Economic Loss (Lecture 10)

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Law of Torts II CASES – Economic Loss (Lecture 10) Negligent misstatements: Hedley Byrne and Co Ltd v Heller & Partner Ltd FACTS: o P were advertising agents, placing ads in newspapers. They paid for ads themselves on the basis that they would be reimbursed. o D replied that Easipower “were quite good for its engagements”. However, stated that this recommendation was given “without responsibility”. o Easipower failed to reimburse P and went into liquidation, resulting in P suing D alleging that their economic loss was caused by D’s negligence. HELD: o D’s were not liable as credit reference had been given “without responsibility”. Therefore, there was a disclaimer. o However, obiter statements and that the Ds would have been liable in negligence in absence of this statement. o It was also held by Lord Reid that there has to be more than just a misstatement, as it is not enough to establish a DOC.
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