Hedley Byrne v. Heller & Partners Ltd. [1963] 2 All E.R. 575 is the decision of the House of Lords that first recognized the possibility of liability for pure economic loss, not dependent on any contractual relationship, for negligent statements. The basis of this liability was variously held to be an "assumption of responsibility" to the claimant, a "special relationship" between the parties, or a relationship "equivalent to contract".

The significance in legal history and developments is the application of principles over authority (being precedence). As Lord Reid said in Home office v Dorset Yacht [1970] AC 1004, [1970] UKHL 2

In later years there has been a steady trend towards regarding the law of negligence as depending on principle so that, when a new point emerges, one should ask not whether it is covered by authority but whether recognised principles apply to it. Donoghue v. Stevenson [1932] A.C. 562 may be regarded as a milestone, and the well-known passage in Lord Atkin's speech should I think be regarded as a statement of principle. It is not to be treated as if it were a statutory definition. It will require qualification in new circumstances. But I think that the time has come when we can and should say that it ought to apply unless there is some justification or valid explanation for its exclusion. For example, causing economic loss is a different matter: for one thing it is often caused by deliberate action. Competition involves traders being entitled to damage their rivals' interests by promoting their own, and there is a long chapter of the law determining in what circumstances owners of land can and in what circumstances they may not use their proprietary rights so as to injure their neighbours. But where negligence is involved the tendency has been to apply principles analogous to those stated by Lord Atkin (cf. Hedley Byrne v. Heller [1964] A.C. 465).
Facts
The bankers for Hedley Byrne (an advertising partnership) telephoned the bank of Heller & Partners Ltd. inquiring about the financial state and credit record of one of Heller's client companies, Easipower Ltd. Hedley Byrne was about to undertake some significant advertising contracts for them, and wanted to be sure of their financial security. Heller vouched for their client's record but qualified it by waiving responsibility, stating that the information was: "for your private use and without responsibility on the part of the bank and its officials." Hedley Byrne relied on this information and entered into a contract with Easipower which went bankrupt soon afterwards. Unable to obtain their debt from the bankrupt, Hedley Byrne sued Heller for negligence, claiming that the information was given negligently and was misleading.
Judgment
The court found that the relationship between the parties was "sufficiently proximate" as to create a duty of care. It was reasonable for them to have known that the information that they had given would likely have been relied upon for entering into a contract of some sort. This would give rise, the court said, to a "special relationship", in which the defendant would have to take sufficient care in giving advice to avoid negligence liability. However, on the facts, the disclaimer was found to be sufficient enough to discharge any duty created by Heller's actions. There were no orders for damages.

Effectively, the House of Lords had chosen to approve the dissenting judgment of Denning LJ in Candler v. Crane, Christmas & Co [1951] 2 KB 164.