Without electricity to heat the claima… However he asserts that “the principle extends beyond the provision of information and advice to include the performance of other services.” He acknowledges the criticism of the “assumption of responsibility” test in misrepresentation cases but says “in cases such as this” and “especially in a context concerned with a liability which may arise under a contract or in a situation ‘equivalent to contract,’” the benefit of asking whether, objectively, “responsibility should be held to have been assumed by the defendant” is that where one party assumes responsibility towards another he ought to be liable for loss flowing from it and hence, once it is established that a case falls within the Hedley Byrne principles (including assumption of responsibility), there is no need to ask whether it is fair, just and reasonable for liability to be imposed.Â, Written by Oxford & Cambridge prize-winning graduates, Includes copious adademic commentary in summary form, Concise structure relating cases and statutes into an easy-to-remember whole. Knowledge of reliance + special skill + relationship between D and P that is either general or specific to a particular transaction (whereby D assumes a responsibility to P) = prima facie duty of care (subject to disclaimers). In addition as Lord Browne-Wilkinson pointed out in Henderson v Merrett Syndicates Ltd [1995] 2 AC 145, 206: "The phrase "fiduciary duties" is a dangerous one, giving rise to a mistaken assumption that all fiduciaries owe the same duties in all circumstances. A claimant's pure economic loss resulting from a defendant's carelessness can only give rise to a claim in Negligence if a duty of careis established. He also says one can proceed either by analogy of circumstances to previous cases that come within the Hedley Byrne rules OR by principle from that case. Your email address will not be published. Case summary last updated at 19/01/2020 12:35 by the Required fields are marked *. Pure economic loss may arise in cases where there is no physical damage but loss has been caused by a negligent statement, rather than a negligent action. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. This category only includes cookies that ensures basic functionalities and security features of the website. It established the possibility of concurrent liability in both tort and contract . 83. Henderson v Merrett Syndicates 2 AC 145 The facts of Henderson were complex, but the solution favoured by the HoL was reasonably simple. It established the possibility of concurrent liability in both tort and contract. ATTORNEY(S) ACTS. HL held that the more “indirect” plaintiff could still claim for tort damages as the relationship was proximate enough.Â, Lord Goff: This type of relationship (investor and managing agent) is a typical circumstance where the Hedley-Byrne rules apply. Limitation Act section 34(5). Henderson v Merrett Syndicates Ltd [1994] 2 AC 145 was a landmark House of Lords case. This item appears on. 573 (a decision of the Full Court of the Supreme Court of Victoria). Limitation Act section 38(2). The agents held themselves out as having a special skill, they knew that Ps would be implicitly relying on their advice, since Ps gave Ds the authority to take out insurance etc for them. 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