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(1888) LR 14 App Cas 337 (HL). The defendant tram company advertised in its prospectus that it would employ steam power, and intimated that it had the authority of the Board of Trade to do so. In the end, the Board refused consent to steam power, and the company was wound up. The claimant investor brought an action in the TortOfDeceit, which ultimately failed in the HouseOfLords. While there was no doubt that the defendants' claim was unfounded, the House held that deceit required actual Dishonesty -- Negligence, however culpable was not enough.
Derry v Peek was heard before the development of the modern law of Negligence and, as a result, it became established law that there was no liability in tort for NegligentMisstatement. This largely remained the case until HedleyByrneVHeller1963.
-- Main.KevinBoone - 15 Jan 2004
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