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Morgan Crucible v Hill Samuel

288 words (1 pages) Case Summary

6th Oct 2021 Case Summary Reference this In-house law team

Jurisdiction / Tag(s): UK Law

Legal Case Summary

Morgan Crucible Co v Hill Samuel & Co [1991] Ch 295.



The plaintiffs were bidding to take over a third party company, which was being advised by the defendants. During the bidding process, the defendants made a number of negligent misrepresentations to the third party company, which resulted the plaintiffs suffering a loss. The plaintiffs sought to recover their losses from the defendants in the tort of negligence, arguing that despite the absence of any contractual relationship, they were owed a duty of care by the defendant advisers. 


The issue was whether a party advising a company owed a duty of care to other companies (with whom those receiving the advice subsequently dealt) to ensure that the advice provided was accurate.

Decision / Outcome

The Court of Appeal held that a duty of care did exist on the facts of the case. Key features which were relevant in determining the existence of a duty of care were the fact that the plaintiff’s identity and the nature of their business/ transaction with the third party company was known to the defendant at the time the advice was provided.

However, the Court also suggested that in such a case the bar below which conduct will be considered ‘negligent’ is relatively low. It is not sufficient to show that the information was misleading or highly misleading, as the defendants should not be treated as having warranted the accuracy of the information. Rather, it is necessary to demonstrate that they failed to exercise due care.

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Content relating to: "UK Law"

UK law covers the laws and legislation of England, Wales, Northern Ireland and Scotland. Essays, case summaries, problem questions and dissertations here are relevant to law students from the United Kingdom and Great Britain, as well as students wishing to learn more about the UK legal system from overseas.

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