Hedley Byrne v. Likas?
[House of Lords]
 AIR CONDITIONER 465
Hedley (the appellants) were advertising agents who had supplied a substantial amount of marketing on credit for Easipower. If Easipower did not spend on the promoting then Hedley would be accountable for such amounts. Hedley started to be concerned that Easipower may not be in a financial position to pay your debt and wanted assurances from Easipower's lender that Easipower was in a posture to pay for the additional advertising which in turn Hedley can provide them in credit.
The respondents, who were Easipower's bankers, provided a favourable report of Easipowers budget, but agreed that the report was given " without responsibility. " Around the strength of the report given by the participants, Hedley placed additional instructions on behalf of Easipower which ultimately resulted in a loss of ВЈ17, 000. Hedley then helped bring an action against the respondents to get damages under the tort of negligence:
Held: A at fault, although genuine, misrepresentation, can provide rise to an action to get damages pertaining to financial loss even if there is no agreement between the consultant and the advisee and no fiduciary relationship. What the law states will suggest a duty of care if the advisee seeks information from an advisor who has particular skill and where the advisee trusts the advisor to exercise due care, and that the advisor recognized or must have known that reliability was being positioned upon his skill and judgment.
However , in cases like this there was an express disclaimer of responsibility and there were therefore be no legal responsibility. This case established the doctrine of at fault misrepresentation, in this case the disclaimer properly barred the claim.
APPEAL from the Court of Appeal (Ormerod, Pearson and Harman L. JJ. ).
This was an appeal (by leave in the Court of Appeal) by appellants, Hedley Byrne & Co. Limited., who were the plaintiffs inside the action, from an purchase of the Court docket of Appeal dated March 18, 61, affirming the judgment of McNair L., dated December 20, 60, in favour of the respondents, Likas? & Partners Ltd., the defendants in the action, where it was held that the actions failed over a point of law, although that in any other case the injuries recoverable by appellants may have been ВЈ15, 454 with interest with the rate of 4 per cent. per annum from January you, 1959.
The appellants were a firm of advertising providers. The respondents were merchant bankers. On the end of 1957 the appellants for a customer, Easipower Ltd. positioned some little orders to promote. Later plans were made to them for an advertising program involving the expenditure of ВЈ100, 000 in addition to November, 1957, they received indirectly via Martin's Bank Ltd., Easipower's then lenders, a reference point reporting Easipower to be " a respectably constituted business whose trading connection is expanding rapidly. We consider the company being quite great for its events. " They will placed on behalf of Easipower on credit rating terms substantive orders for advertising time on tv programmes and for advertising space in certain newspapers on conditions that they themselves became privately liable to the tv screen and magazine companies.
The appellants, becoming doubtful in the financial position of Easipower, needed a bankers' report concerning the company which then had an accounts with the respondents. They themselves banked at the Piccadilly branch of the Countrywide Provincial Traditional bank Ltd. which they asked to secure a report. The Piccadilly department communicated using its City business office, a representative which telephoned the respondents upon August 18, 1958, and it was common ground that a contemporaneous be aware of the following conversation was accurate: " Heller & Partners Ltd. Minute of telephone conversation Call from National Provincial Bank Limited., 15, Bishopsgate, E. C. 2 . 18. 8. fifty eight. Person known as: L. Heller, re Easipower Ltd. That they wanted to find out in self confidence and without responsibility on our part, the...
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