Plaintiffs, Lloyds names, brought proceedings against defendants,
underwriting agents, for negligence in management of syndicates.
Wished to establish duty of care in tort in addition
to any contractual duty of care that might be owed by defendants.
House of Lords found for plaintiffs.
Where person assumed responsibility to perform
professional or quasi-professional services for another, who relied on those
services, relationship between parties was in itself sufficient to give rise to
duty on part of person providing services.
[Note focus on voluntary assumption of responsibility
as basis for duty of care]
Also, this duty of care could arise irrespective of
whether there was a contractual duty of care between the parties.
Plaintiff with remedies in both contract and tort entitled
to choose remedy appearing to him the most advantageous.
[So case decided that Hedley Byrne principle is not confined to statements but may apply
to provision of services.
This sometimes known as the extended Hedley Byrne principle]