Adrian Kwintner reviews causation defences in mortgage lender claims
Recent cases on lender claims have seen professionals rely on causation defences to escape liability despite clear breaches of their duties. These cases vividly demonstrate that even where negligence is established, the lender must still show that it would have acted differently had it been properly advised by the defendant. Otherwise, the claim will fail. Although the cases were decided on very specific facts, they provide welcome news for solicitors and surveyors, and their insurers, facing a torrent of lender claims over recent years.
Surveyors saved by underlying fraud
The High Court case of Platform Funding Ltd v Anderson & Associates Ltd [2012] EWHC 1853 (QB) arose out of a large fraud between 2005 and 2006 in which a Mr Barrie had purchased all 84 flats in a new development at a significant reduction. He then sold the flats on to sub-prime borrowers at prices significantly above the market price. Valuers were misled into providing over-valuations using false comparable data manufactured by Barrie. The developer’s on-site marketing team was directed by Barrie to present
