Tiuta International Ltd (In Liquidation) v De Villiers Surveyors Ltd: SC 29 Nov 2017

Allegation of professional negligence. The claimant sought damages against the defendant surveyors for negligently valuing a partially completed residential development over which it proposed to take a charge to secure a loan. On an initial application for summary judgment, an issue arose as to damages.
Held: The appeal succeeded, though the court emphasised that the decision was sensitive to facts assumed for the purpose of the pre-trial application.
The measure of damages is, with qualifications, the sum needed to restore the claimant as closely as possible to the position that he would have been in if he had not been wronged. Where a claimant lends money, and but for a negligent valuation would not have done so, the measure is the difference between: (a) the position the claimant would have been in, had the defendant not been negligent and (b) the claimant’s actual position. This is the ‘basic comparison’ discussed by Lord Nicholls in Nykredit Mortgage Bank plc v Edward Erdman Group Ltd (No 2) [1997] 1 WLR 1627. The basic comparison is typically between: (a) the amount of money lent by the claimant, plus interest on that money and (b) the value of the rights acquired under >the loan agreement plus the true value of the overvalued property


Lady Hale, President, Lord Kerr, Lord Sumption, Lord Lloyd-Jones, Lord Briggs


[2017] UKSC 77, [2017] 1 WLR 4627, [2018] 2 All ER 203, [2018] 1 BCLC 179, UKSC 2016/0156


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England and Wales


CitedNykredit Mortgage Bank Plc v Edward Erdman Group Ltd (No 2) HL 27-Nov-1997
A surveyor’s negligent valuation had led to the plaintiff obtaining what turned out to be inadequate security for his loan. A cause of action against a valuer for his negligent valuation arises when a relevant and measurable loss is first recorded. . .
Appeal fromTiuta International Ltd v De Villiers Surveyors Ltd CA 1-Jul-2016
Appeal against an order giving summary judgment for the respondent, De Villiers Surveyors Ltd, on one issue relating to the claim by the appellant, Tiuta International Ltd, for damages for professional negligence.
Held: The appeal succeeded . .
CitedLowick Rose Llp v Swynson Ltd and Another SC 11-Apr-2017
Losses arose from the misvaluation of a company before its purchase. The respondent had funded the purchase, relying upon a valuation by the predecessor of the appellant firm of accountants. Further advances had been made when the true situation was . .
CitedPreferred Mortgages Ltd v Bradford and Bingley Estate Agencies Ltd CA 8-Mar-2002
. .
CitedKomercni Banka, A S v Stone and Rolls Ltd and Another ComC 15-Nov-2002
Toulson J discussed a set off against a claim for damages: ‘The question whether an alleged benefit should or should not be taken into account cannot be determined by mere application of the ‘but for’ test. Where the wrongful conduct consists of . .
Lists of cited by and citing cases may be incomplete.

Professional Negligence, Damages

Updated: 25 November 2022; Ref: scu.599718