briefing December 2011 Surveyors’ cases 2011 Some of 2011’s most significant cases involving surveyors Capita Alternative Fund Services (Guernsey) Ltd v Drivers Jonas The claimants engaged the defendant firm of chartered surveyors and property consultants to advise them in relation to the acquisition and development of a factory outlet shopping centre (FOC) at Chatham Historic Dockyard (Dockside). Drivers Jonas overvalued Dockside at £48,150,000. The claimants sued the firm for damages in respect of their losses, which totalled about £42,322,500 and contended that since Drivers Jonas was advising them whether or not to proceed with the transaction they could recover the entirety of their loss. The judge allowed the claim but awarded damages of only £18.05 million and not the claimants’ full loss. Scullion v Bank of Scotland The proposition established in Smith v Eric S Bush that the duty of care owed by a property surveyor to a mortgagee to prepare its valuation report with skill and care extended to the purchaser of the valued property, did not apply where the transaction concerned an investment in a buy-to-let property rather than an ordinary domestic householder purchasing his home. There was no inherent likelihood that a purchaser, buying property for the purpose of letting it out, would rely on a valuation provided to the mortgagee rather than obtaining his own valuation. Clinton Eagle v Redlime This case concerned a dog kennel block and its deficient concrete base. The claimant’s claim against the contractor Redlime, was time-barred because he had the required knowledge more than three years before issuing the claim. He did not know about the full extent of the damage at that point, but that was irrelevant as long as the damage he knew about was “sufficiently serious" to justify instituting proceedings for damages against a defendant who did not dispute liability and was able to satisfy a judgment within the meaning of s14A(7) of the Limitation Act 1980. It did not matter that other more serious damage might exist, which would only be discovered at a later date. Miranda Whiteley Professional Support Lawyer +44(0)1223 222459 miranda.whiteley@mills-reeve.com www.mills-reeve.com T +44(0)844 561 0011 Mills & Reeve LLP is a limited liability partnership authorised and regulated by the Solicitors Regulation Authority and registered in England and Wales with registered number OC326165. Its registered office is at Fountain House, 130 Fenchurch Street, London, EC3M 5DJ, which is the London office of Mills & Reeve LLP. A list of members may be inspected at any of the LLP's offices. The term "partner" is used to refer to a member of Mills & Reeve LLP. The contents of this document are copyright © Mills & Reeve LLP. All rights reserved. This document contains general advice and comments only and therefore specific legal advice should be taken before reliance is placed upon it in any particular circumstances. Where hyperlinks are provided to third party websites, Mills & Reeve LLP is not responsible for the content of such sites. Mills & Reeve LLP will process your personal data for its business and marketing activities fairly and lawfully in accordance with professional standards and the Data Protection Act 1998. If you do not wish to receive any marketing communications from Mills & Reeve LLP, please contact Suzannah Armstrong on 01603 693459 or email suzannah.armstrong@mills-reeve.com