Valuers' Duties and Fee Disputes

Members of Keating Chambers have appeared in some of the most important cases ever decided in the law relating to professional liability in the valuation and sale of property during the last 25 years. These include:

Yianni v Edwin Evans [1981] 3 WLR 843, which established that a valuer instructed by a mortgagee lending institution could owe a duty of care in tort to a mortgagor purchaser relying on a valuation.
United Bank of Kuwait v Prudential Property Services [1995] EGCS 190, in the Court of Appeal, was one of the first cases in which contributory negligence by the claimant lending institution was argued in a negligent valuation case.
Bank Bruxelles Lambert v Eagle Star Insurance [1996] 3 WLR 87, also in the Court of Appeal, a so-called ‘armchair valuation’ case, arose out of the volatile market conditions of the late 1980s and early 1990s.
South Australia Asset Management Corporation v York Montague [1997] AC 191 in the House of Lords, is a landmark decision on the extent to which loss should be recoverable in a negligent valuation case where it is exacerbated by a significant fall in the market.

More recently, members of Chambers appeared in Barry v Davies [2000] Times Law Reports 31 August 2000 on allegations of negligence by an auctioneer, and in Flannery v Halifax Estate Agencies Ltd [2000] 1WLR 377, where at issue was the obligation of the judge to give reasons for his decision in a negligent valuation case.

The combination of our expertise in this field, together with the considerable crossover between issues in the valuation cases and those related to construction explains why Chambers continues to be much in demand. Thus in Earl’s Terrace Properties Ltd v Nilsson Design Ltd [2004] 94 Con LR 118, in which both sides were represented by counsel from Chambers, the Technology and Construction Court considered the extent and quantum of damages recoverable as commercial loss from delay in refurbishment of dwelling houses where a rise in sale prices had distorted the market position. In HOK Sport v Aintree Racecourse Co. Ltd. [2003] 86 Con LR 165, the same Court considered the application of the South Australia case (see above) to a situation where defective design had led to losses in attendance at a racecourse, which were argued to be subject to unforeseeable market distortions.

Of course, not all negligent valuation and surveying matters referred to Keating Chambers become reported cases. Similarly, it is not only advocacy for which our members are renowned: we also offer expertise in negotiation and other Alternative Dispute Resolution techniques when a confidential and cost-effective settlement of the dispute is required. For example, one of our QCs was recently appointed as mediator to resolve disputes over the house price index used to calculate the purchase price of a property.

It is testament to our reputation in this area that Members are often invited to write and speak on negligence in valuation and surveying and related topics.

Further Information
For further information on how our members can assist you, please contact the Senior Clerks, John Munton and Nick Child, in the first instance, on +44(0)20 7544 2600. They and their teams of Clerks will be pleased to advise you on the member of Keating Chambers appropriate to your requirements.