Platform Funding Limited v Anderson & Associates Limited

Platform Funding Limited v Anderson & Associates Limited
In this case the lender alleged that the surveyors had overvalued a flat in one of the
Thamesmead developments.
The surveyor had valued the flat at £274,995, the reported purchase price. The Court held that
the true value could not have been more than £235,000. The valuation therefore fell outside of
any reasonable margin of error. The valuer had failed to:
•
make any enquiries as to the availability of incentives within the development;
•
seek out comparables from adjacent developments or from the second-hand market; and
•
make enquiries into the selling conditions in the Thamesmead developments.
The valuer had not used reasonable skill and care in providing the valuation and had acted in
breach of the recently amended RICS Red Book regarding the provision of new build valuations
for mortgage purposes.
However, the Court dismissed the claim on the basis that the breach of duty had not caused the
lender’s loss. Had the valuer exercised appropriate skill and care he would have arrived at a
valuation of £274,995 because there had been a large-scale and complex fraud in operation at
the development whereby valuers were misled into providing overvaluations.
The judgment therefore demonstrates, yet again, that causation is a fundamental element of a
claim for professional negligence, which must be pleaded and proven in the same way as
breach of duty before liability arises.
One disappointment for valuers and their insurers is that the Court indicated it would have
dismissed allegations of contributory negligence against the lender. However, as the judgment
does not give any details of the alleged imprudent lending, it does not give any ammunition to
lenders to argue that their lending practices cannot be criticised.
This newsflash has been sent to you by Hilary Harrison of Robin Simon and Stephen Ross of
Walsh PI. Hilary has extensive experience defending valuers in this round of lender’s litigation
and Stephen acted for the successful surveyors in this claim up until proceedings were served
by the lender. If you have any questions, please do not hesitate to contact us.
Hilary Harrison
T +44 (0)333 010 6854
F +44 (0)333 010 6954
E hilary.harrison@robinsimonllp.com
Stephen Ross
T +44 (0)333 010 3892
F +44 (0)333 010 3992
E shr@walshpi.com
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If you are interested, please contact any one of our lawyers or David Simon at: david.simon@robinsimonllp.com
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