W.L Gore and Associates

NEGLIGENT MISSTATEMENTS; DECEIT

CONTENTS

Negligent misstatements............................................................1

Deceit......................................................................................7

•OBJECTIVES •

By the end of this chapter you should be able to:

•appreciate the evolution of the law regarding liability for

negligent misstatements

•show a particular knowledge of the significance of the

decision in HEDLEY BYRNE v HELLER and of the ‘special

relationship’ which was established in that case

•consider the current scope of liability for negligent

misstatement in the light of the case of CAPARO (and its

successors) and the line of cases following the precedent of

ROSS v CAUNTERS

•demonstrate a knowledge of the tort of deceit and the main

ingredients of that tort.

Chapter 10

TORT

NEGLIGENT

MISSTATEMENTS; DECEIT

NEGLIGENT MISSTATEMENTS

INTRODUCTION

A negligent misstatement is defined as a statement issued carelessly by the defendant which is relied upon by the claimant to his detriment. For such a statement to be actionable it must usually cause physical damage or personal injury. When it leads to pure economic loss, liability is

restricted. Generally, the law of negligence has developed more slowly and cautiously in respect of liability for negligent statements than