Negligent Misstatement

• Define Negligent Misstatement:

  When a C suffers loss in relying on advice given by D.

  Must be professional advice to claim.
• To prove:

  1. A negligent statement must be made.
  2. Prove "Special Relationship" test (Hedley Byrne)

  • D must possess a skill/expertise.
  • The advice must be acted on by C.
  • The advice must be communicated directly to C.
  • The person giving advice must know it's being required for a purpose.
  • There is no disclaimer to act as a defence.