Tiuta International Limited (in liquidation) (Respondent) v De Villiers Surveyors Limited (Appellant)
Case ID: UKSC 2016/0156
How the 'but for' test for causation is to be applied as between an allegedly negligent valuer and lender in a re-financing situation.
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.
De Villiers Surveyors Limited
Tiuta International Limited
Lady Hale, Lord Kerr, Lord Sumption, Lord Hughes, Lord Lloyd-Jones
Hearing start date
06 Nov 2017
Hearing finish date
06 Nov 2017