SYDNEY LAWYERS. ON 11 NOVEMBER 1968, the High Court of Australia delivered Mutual Life & Citizens’ Assurance Co Ltd v Evatt  HCA 74; (1968) 122 CLR 556 (11 November 1968).
The High Court of Australia first recognised liability for negligent misstatement.
Barwick CJ at 572 stated that there is a duty of care “whenever a person gives information or advice to another … upon a serious matter … and the relationship … arising out of the circumstances is such that on the one hand the speaker realizes or ought to realize that he is being trusted … to give the best of his information or advice as a basis for action on the part of the other party and it is reasonable in the circumstances for the other party to seek or accept and in either case to act upon that information and advice”.
1300 00 2088