A common thing in this regard has been that a loss-suffered party accuses its partner for incurring of the loss resulting in to legal disputes. There have been many instances for such legal cases some of which are discussed below.
There have been various cases in the regard of economic losses that have arisen in because of negligence misstatements. Among such cases, Hedley Byrne & Co Ltd Vs Heller & Partners Ltd has been one of the most notables. The case is regarded as the tort law case which had occurred because of the negligent misstatement. Analysing the case it is observed that, Hedley Byrne was an advertising firm. The company had a new customer in lieu of Easipower Ltd. The recent customer put up a big order to the advertising company. Hedley Byrne became suspicious of the amount of the order and tried to ensure the financial viability of the client company. In order to do so, the advertising major called up their banks, National Provincial Bank, and asked for a report about the credit worthiness of Easipower Ltd from the client’s bank named Heller & Partner’s Ltd. The banker of the client replied to the National Provincial Bank and thereby to the Hedley Byrne stating that Easipower Ltd was “considered good for its ordinary business engagements”. But an important point that had to be noted in analyzing the case was that the banker of the client, Heller & Partners Ltd also notified the reply saying “without responsibility on the part of this bank”.
Perceiving the financial credibility of Easipower Ltd to be perfect, Hedley Byrne went in to the deal with the company but soon Easipower Ltd went into liquidation. As a result, Hedley & Byrne lost a hopping amount of more than £ 17,000. Hedley & Byrne, incurring the loss, sued the banker of Easipower Ltd on the grounds of negligence as the advertising company relied upon the statement of the bank. The other accusation was that of misleading information. The honourable court heard the case