The issue was whether a mortgagee had sold at an undervalue, and if so what the damages should be.
Held: In a well-developed property market where a sale is assured and the only possible issue is as to the market level, damages for loss of chance are relatively easily calculated. The fact that the sale price may be the same as the valuer’s estimate of the market value of the property will not protect the mortgagee if in fact the market value is higher. If the creditor breaches his duty under the principal loan agreement, a surety is released from his liability under the guarantee to the extent that the value of the securities has been impaired as a result of the breach.
Evans LJ said: ‘The evidence enabled the judge to assess what the market value was, and that figure would correspond with the price that could be expected to be achieved, given exposure to the market for a reasonable time. The question, what the figure was, was an issue of historic fact which had to be established on the evidence . . ‘
Evans LJ, Potter LJ and Alliott J
[2001] QB 261, [2001] ANZ Conv R 220, [2000] 2 All ER 779, [2000] 1 All ER (Comm) 257, [2000] 3 WLR 1031
England and Wales
Cited by:
Cited – Equitable Life Assurance Society v Ernst and Young CA 25-Jul-2003
The claimant sought damages from its accountants, saying that had they been advised of the difficulties in their financial situation, they would have been able to avoid the loss of some 2.5 billion pounds, or to sell their assets at a time when . .
Cited – Roger Michael and others v Douglas Henry Miller and Another ChD 22-Mar-2004
Property had been sold by the respondents as mortgagees in possession. The claimants said the judge had failed to award the value of the property as found to be valued, and had not given a proper value to a crop of lavender.
Held: In . .
Cited – Barclays Bank Plc v Kufner ComC 10-Oct-2008
barclays_kufnerComC2008
The bank sought summary judgment under a guarantee to secure a loan to purchase a luxury yacht which was to be hired out in business. The loan had been charged against the yacht, but when the yacht was re-registered, the bank failed to re-establish . .
Lists of cited by and citing cases may be incomplete.
Damages, Contract
Updated: 19 November 2021; Ref: scu.184851
