Case details

Tiuta International Limited (in liquidation) (Respondent) v De Villiers Surveyors Limited (Appellant)

Case ID: UKSC 2016/0156

Case summary

Issue(s)

How the 'but for' test for causation is to be applied as between an allegedly negligent valuer and lender in a re-financing situation.

Facts

In April 2011 the respondent lender loaned £2.2m to a borrower for a term of 9 months on the basis of a valuation of a potential property development carried out by the appellant valuer. By December 2011 the borrower was indebted to the respondent in the amount of £2.5m. There has been no pleaded allegation that the original valuation was carried out in a negligent manner. In December 2011 the borrower sought to extend the loan and borrow an extra £500,000 from the respondent. The appellant provided a second valuation and accordingly the lender extended a second loan to the borrower. The second loan was structured as a re-financing arrangement: it advanced £2.5m to repay the amount outstanding under the original loan, plus further amounts to be drawn down from time to time. When the term of the second facility expired, £2.84m remained outstanding, of which the sale of the property as security was expected to achieve only £2.1m. The respondent brought proceedings against the appellant for its loss, alleging that the second valuation was carried out negligently.

Judgment appealed

[2016] EWCA Civ 661

Parties

Appellant(s)

De Villiers Surveyors Limited

Respondent(s)

Tiuta International Limited

Appeal

Justices

Lady Hale, Lord Kerr, Lord Sumption, Lord Hughes, Lord Lloyd-Jones

Hearing start date

06 Nov 2017

Hearing finish date

06 Nov 2017