Supreme Court ruling on negligent property valuations: Tiuta International v De Villiers Surveyors [2017] UKSC 77

Authors: David Reston, Partner, Insurance Dispute Resolution, Sarah Irons, Professional Support Lawyer, Dispute Resolution, Matthew Bonye, Partner and Head of Real Estate Dispute Resolution

The Supreme Court judgement in the case of Tiuta International v De Villiers Surveyors was handed down at the end of last month. The case involves surveyors valuing a property development, and a lender granting a loan facility to a developer while relying on the valuation.

The Supreme Court held that where a lender, Tiuta, advanced money on the basis of an initial valuation of property by surveyors De Villiers, then Tiuta refinanced the facility on the basis of a second negligent valuation by De Villiers, the liability of De Villiers was limited to the ‘top up’ element of any additional lending.

This ruling has come at a time when valuation negligence is a hot topic in the courts. There is an increased frequency of claims, often being tied to the financial instability of the late 2000s and its effect on commercial real estate values.  In recent months, other important issues such as the width of the margin for error in valuation, have come under scrutiny.

For more information on this case please click on the link to the HSF insurance blog post, below:

Causation in valuers’ negligence claims: reliance on earlier valuations

For more information please contact:

David Reston
David Reston
Partner, Insurance Dispute Resolution, London
Email | Profile
+44 20 7466 2244
Sarah Irons
Sarah Irons
Professional Support Lawyer, Dispute Resolution, London
Email
+44 20 7466 2060
Matthew Bonye
Matthew Bonye
Partner and Head of Real Estate Dispute Resolution, London
Email | Profile
+44 20 7466 2162

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