Green & Anor v Alexander Johnson (A Firm) & Anor [2005] EWCA Civ 775 (28 June 2005)

Green & Anor v Alexander Johnson (A Firm) & Anor [2005] EWCA Civ 775 (28 June 2005)

The proper measure of damages for the admitted professional negligence is the diminution in the investment value of the property as a whole, not the vacant possession value of individual flats. The allowance for the value of the flats sold to Mrs Tuttle should be based on the LVT value, as that reflects the fair and reasonable expectation of the statutory procedure that would have occurred absent the negligence.

Citation
[2005] EWCA Civ 775
Parties
Respondent/claimant: David Robert Green; Respondent/claimant: Roger Lloyd Jamie Grant; Appellant/defendant: Alexander Johnson (A Firm); Appellant/defendant: Justin Holmes
Jurisdiction
England and Wales
Judgment Date
28 June 2005
Procedural Posture
Appeal From Chancery Division (assessment of Damages for Professional Negligence) / Court of Appeal Judgment
Outcome
Appeal and cross-appeal dismissed; judgment of the lower court upheld.
Legal Topics
Assessment of Damages, Valuation of Property, Causation, Leasehold Reform
Professional Negligence Property Law Assessment of Damages Valuation of Property Causation Leasehold Reform

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Parties

David Robert Green

Respondent/claimant

Roger Lloyd Jamie Grant

Respondent/claimant

Alexander Johnson (A Firm)

Appellant/defendant

Justin Holmes

Appellant/defendant

Procedural Posture

Appeal From Chancery Division (assessment of Damages for Professional Negligence) / Court of Appeal Judgment

Legal Issues

  1. 1 What is the correct basis for assessing damages for professional negligence in property valuation?
  2. 2 Should damages be calculated on an investment basis or vacant possession basis?
  3. 3 Is the allowance for the value of leases sold to Mrs Tuttle to be based on the compromise amount or the LVT value?

Ratio Decidendi

The proper measure of damages for the admitted professional negligence is the diminution in the investment value of the property as a whole, not the vacant possession value of individual flats. The allowance for the value of the flats sold to Mrs Tuttle should be based on the LVT value, as that reflects the fair and reasonable expectation of the statutory procedure that would have occurred absent the negligence.

Court Disposition

Appeal and cross-appeal dismissed; judgment of the lower court upheld.

Orders

  • Damages assessed at £252,995.36 against the Second Defendant are upheld.
  • No adjustment to the allowance for the value of the flats sold to Mrs Tuttle.