Source: All England Reporter
Publisher Citation: [2010] All ER (D) 138 (Jun)
Neutral Citation: [2010] EWHC 1156 (TCC)
Court: Queen's Bench Division, Technology and Construction Court
Judge:

Coulson J

Representation Anthony Speaight QC (instructed by Stockler Brunton) for the claimants.
  Patrick Lawrence QC and Sian Mirchandani (instructed by Reynolds Porter Chamberlain) for the defendants.
Judgment Dates: 24 May 2010

Catchwords

Negligence - Professional person - Valuer - Claimants investing in hotels valued by defendant valuer - Hotels having unusual lease arrangements affecting prospect of rental growth - Claimants issuing proceedings in negligence against valuers - Whether valuers making negligent misstatements in reports - Whether claimants relying on misstatements - Whether valuer liable in negligence if notwithstanding errors made figure produced within reasonable bracket - Appropriate margin of error - Whether valuers in instant case liable in negligence.

The Case

Negligence Professional person. The Technology and Construction Court dismissed a claim for damages in negligence against the defendant hotel valuers, holding that: (i) whilst a valuer might be in breach of duty because he fell below the standard of a reasonable valuer in his methodology, that valuer would not be liable in negligence if it could be shown that, notwithstanding the error, the valuation figure that he produced was within a reasonable bracket; and (ii) a judge at first instance should analyse a valuer's liability by reference to the results route, not the methodology route. Consideration was also given to the appropriate margin of error in respect of the valuations of different types of property.

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