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Words: | Submitted: Mon Jun 19 2006
... as 'no liability in tort'. The position up to 1963, then, despite the dissenting judgment of Denning LJ in Candler v Crane Christmas 2 was that there was no recovery for loss incurred through reliance on a careless misstatement except, for example in contract3 where there is a fiduciary relationship - for example, solicitor and client as in Nocton v Lord Ashburton4. Also, where the loss was physical - for example, where someone is injured by a structure, which the defendant has said, is safe5, or by statute - for example, under the Directors' Liability Act, 1890, a duty was imposed on company directors to take care in making statements.6 The case which 'turned the tide of legal history'7 was Hedley Byrne v Heller8 .In this case, the House of Lords asserted that statements which cause damage need not be made dishonestly in order for there to be tortuous liability. Instead, ...
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