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 it has in respect of negligent acts for two main reasons:
P people are generally less careful in what they say than in what they do, particularly when expressing opinions on social or informal occasions rather than in their business
or professional capacity and P in the words of Lord Pearce in HEDLEY BYRNE (below):
?...words are more volatile than deeds, they travel fast and far a field, they are ...