Craneheath Securities Ltd v York Montague Ltd
Craneheath Securities Ltd v York Montague Ltd
- 1994
- Estates Gazette (1994) 21 EG 124-130(6) .
ChD 3 December 1993. C lent money to T, owner of a restaurant. As security a charge was placed on the property, the valuation of which was carried out by Y. The valuation depended on an assessment of turnover and was for open market value. When the restaurant subsequently closed it was sold for substantially less than the value given by Y. C lost both principal and interest. C sued Y for negligence, the sum being lost as a result of reliance on a negligent valuation. Y counterclaimed for contributory negligence. C`s claim was dismissed as Y was found to have acted in accordance with the RICS `Red book` guidance and had accurately established the turnover.
ASSET VALUATION
MARGIN OF ERROR
NEGLIGENCE
OPEN MARKET VALUE
RISK
VALUERS
ChD 3 December 1993. C lent money to T, owner of a restaurant. As security a charge was placed on the property, the valuation of which was carried out by Y. The valuation depended on an assessment of turnover and was for open market value. When the restaurant subsequently closed it was sold for substantially less than the value given by Y. C lost both principal and interest. C sued Y for negligence, the sum being lost as a result of reliance on a negligent valuation. Y counterclaimed for contributory negligence. C`s claim was dismissed as Y was found to have acted in accordance with the RICS `Red book` guidance and had accurately established the turnover.
ASSET VALUATION
MARGIN OF ERROR
NEGLIGENCE
OPEN MARKET VALUE
RISK
VALUERS