Judgment
The court found that the relationship between the parties was "sufficiently proximate" as to create a duty of care. It was reasonable for them to have known that the information that they had given would likely have been relied upon for entering into a contract of some sort. This would give rise, the court said, to a "special relationship", in which the defendant would have to take sufficient care in giving advice to avoid negligence liability. However, on the facts, the disclaimer was found to be sufficient enough to discharge any duty created by Heller's actions. There were no orders for damages. Lord Morris of Borth-Y-Gest,
| “ | I consider that it follows and that it should now be regarded as settled that if someone possessing special skill undertakes, quite irrespective of contract, to apply that skill for the assistance of another person who relies upon such skill, a duty of care will arise. The fact that the service is to be given by means of or by the instrumentality of words can make no difference. Furthermore, if in a sphere in which a person is so placed that others could reasonably rely upon his judgment or his skill or upon his ability to make careful inquiry, a person takes it upon himself to give information or advice to, or allows his information or advice to be passed on to, another person who, as he knows or should know, will place reliance upon it, then a duty of care will arise.
...in my judgment, the bank in the present case, by the words which they employed, effectively disclaimed any assumption of a duty of care. They stated that they only responded to the inquiry on the basis that their reply was without responsibility. If the inquirers chose to receive and act upon the reply they cannot disregard the definite terms upon which it was given. They cannot accept a reply given with a stipulation and then reject the stipulation. Furthermore, within accepted principles... the words employed were apt to exclude any liability for negligence. |
” |
Effectively, the House of Lords had chosen to approve the dissenting judgment of Denning LJ in Candler v Crane, Christmas & Co 2 KB 164.
Read more about this topic: Hedley Byrne & Co Ltd V Heller & Partners Ltd
Famous quotes containing the word judgment:
“If a man is a good lawyer, a good physician, a good engineer ... he may be a fool in every other capacity. But no deficiency or mistake of judgment is forgiven to a woman ... and should she fail anywhere, if she has any scientific attainment, or artistic faculty, instead of standing her interest as an excuse, it is censured as an aggravation and offence.”
—E.P.P., U.S. women’s magazine contributor. The Una, p. 28 ( February 1855)
“If you were born to honor, show it now;
If put upon you, make the judgment good
That thought you worthy of it.”
—William Shakespeare (1564–1616)
“Casting an eye on the education of children, from whence I can make a judgment of my own, I observe they are instructed in religious matters before they can reason about them, and consequently that all such instruction is nothing else but filling the tender mind of a child with prejudices.”
—George Berkeley (1685–1753)