Daniel Goodkin examines the pitfalls surrounding valuers’ negligence
In Tuita International Ltd (in Liquidation) v De Villiers Surveyors Ltd (Chancery Division, 20 March 2015) the court granted summary judgment on a novel point of causation of loss in valuer’s negligence claims where there has been refinancing and re-mortgage.
The facts
Under a facility agreed in April 2011, the claimant lender loaned the borrower approximately £2.2m in reliance on the defendant valuer’s February 2011 valuation. That valuation was not alleged to be negligent.
The borrower subsequently applied to refinance and increase his borrowing to £3m with the same lender by way of a new facility. The same valuer provided a second valuation report in November 2011. It was assumed for the purposes of summary judgment that the November 2011 valuation was negligent and that the lender had relied on it in agreeing to lend up to a total of £3m. It was further assumed that the lender had redeemed the first mortgage and charge and that the money advanced under the second facility was used to discharge the existing debt.
At the time when
