EDGINGTON
V.
FITZMAURICE

COTTON LJ:(reading the leading judgment)

This case has been very fully and ably argued. It is what is called an action of deceit, the plaintiff alleging that statements were made by the defendants which were untrue, and that he had acted on the faith of these statements so as to incur damage for which the defendants are liable. In order to sustain such an action the plaintiff must show that the defendants intended that people should act on the statements, that the statements are untrue in fact and that the defendants knew them to be untrue, or made them under such circumstances that the court must conclude that they were careless whether they were true or not.

The statements in question were made in a prospectus or circular issued by the defendants for the purpose of getting subscribers to a loan, and the plaintiff alleges that he understood from them that the advances were to be secured on leasehold property of the company. In my opinion there was no good ground for his so believing. T…