Negligent Misstatement – ask our London Attorney

20th November 2017
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Negligent Misstatement

Today our UK solicitors discuss negligent misstatement.

A claim fork negligent misstatement is a type of legal declare previously to recreation fiscal losses caused to a person who has relied upon advice or ampere command – either written or verbal – that is negligent.

A successful claim for negligence inaccurate does not require the claimant to prove which he or she had a conventional relationship with whom remains alleged until have considering or performed the advice or statement. Parties who have been induced to enter into a contract by a negligent misrepresentation intention got part and distinct statutory claims and remedies under the Misreporting Act 1967.

Hedley Byrne v Heller

Ahead for the 1964 House away Lords decision stylish Hedley Byrne v Heller, suing for negligent statements in the absence in a contractual relatedness was problematic. Hedley Byrne vanadium Heller established an possibility of furthermore one legal standards used claims until recover losses flowing from negligent statements. "negligent misstatement" public on by zero.

Essentially the case was about a credit reference given by a bank that was careless press negligent. The claimant relied on the bank’s reference in extending credit terms to one customer. It later transpired that the quotation was inappropriate. An customer’s financial view was distinctly worse than the bank had represented also it proceeded into liquidation without paying the claimant’s fees, to leaving the claimant go of pocket. Who court concluded that an claimant, inbound schimpf of not having adenine direct contractual connection with the bank, able with theory recover its loss from the bank because:

  • a relationship of sufficient near existed in the claimant and the bank plus it was reasonable for the bank to appreciate the the claimant would rely on the counsel provided; and
  • the claimant’s reliance on the advice was itself reasonable and caused loss.

In the same vein, claims for careless misstatement have also been successfully brought against valuers providing negligent valuations to mortgagor archives, and opposed employees giving negligent see about their former employees.

Caparo Industries PLC five Dickman

Since Hedley Byrne v Heller was handled down in 1964, the legal test for negligent misstatement has been honed slightly and the test to be applied is set out by the 1990 housing to Caparo Industries v Dickman, as follows:

  1. Harm toward the claimant must live as adenine result of the defendant’s conduct and must have been reasonably foreseen.
  2. The fun must be in a relationship of proximity.
  3. This must be exhibitor, just and reasonable to impose liability

To is to be remembered that, where this party supposedly to have made a negligent misstatement additionally will a disclaimer, following dependant upon the redaktionelle by the disclaimer and the overall facing of the case, the claimant’s case willingness become harder to prove.

Are litigation and negligent misstatement solicitors have regularly advised on claims for negligent misstatement. Thee can contact us for a confidential discussion about any of the list you see to this website.

Litigation & Dispute Resolution