797. Damages for negligent words at common law.

(2)     Damages for Negligent Words

797.     Damages for negligent words at common law.

It was long believed to be a basic principle of English law that there was no liability for damages for financial loss caused by careless words in the absence of a contractual or fiduciary obligation to take care1. It is now clear that this view is wrong and that there may be a tortious claim for damages based upon a duty to take care, independent of contract or fiduciary obligations2. Such a claim may arise where there have been careless statements