Wasps Football Club, Trustees of v Lambert Smith Hampton Group Ltd. [2004] EWHC 938 (Comm) (06 May 2004)

Wasps Football Club, Trustees of v Lambert Smith Hampton Group Ltd. [2004] EWHC 938 (Comm) (06 May 2004)

LSH owed Wasps a duty to provide a proper open market valuation for the purposes of asset transfer and fundraising, not limited to CGT calculation. LSH breached that duty by preparing a DRC valuation and failing to make proper planning enquiries, resulting in undervaluation. Wasps relied on the valuation in the asset transfer and suffered loss. The scope of duty included foreseeable reliance for fundraising. NGJ's advice was not found to be negligent in the context of instructions and limitations imposed by Wasps.

Citation
[2004] EWHC 938 (Comm)
Parties
Claimant: Ivor Alexander Montlake, Peter George Yarranton and Donald Wills (as trustees of WASPS Football Club); Defendant/part 20 Claimant: Lambert Smith Hampton Group Limited; Part 20 Defendant: Nicholson Graham & Jones
Jurisdiction
England and Wales
Judgment Date
06 May 2004
Procedural Posture
Commercial Negligence and Breach of Contract / Final Judgment After Trial
Outcome
Judgment for the Claimants against LSH; LSH found negligent. NGJ not found liable to contribute.
Legal Topics
Breach of Contract, Negligence, Valuation of Property, Duty of Care, Misrepresentation, Contributory Negligence, Damages Assessment, Scope of Duty, Planning Permission, Capital Gains Tax
Contract Law Professional Negligence Tort Law Breach of Contract Negligence Valuation of Property Duty of Care Misrepresentation +5 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 1 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

Ivor Alexander Montlake, Peter George Yarranton and Donald Wills (as trustees of WASPS Football Club)

Claimant

Lambert Smith Hampton Group Limited

Defendant/part 20 Claimant

Nicholson Graham & Jones

Part 20 Defendant

Procedural Posture

Commercial Negligence and Breach of Contract / Final Judgment After Trial

Legal Issues

  1. 1 Whether the loss alleged by Wasps falls within the scope of the duty owed by LSH
  2. 2 At what amount would a non-negligent valuation have valued the ground
  3. 3 Whether any misrepresentation as to value was made to Wasps by Mr Rigby

Ratio Decidendi

LSH owed Wasps a duty to provide a proper open market valuation for the purposes of asset transfer and fundraising, not limited to CGT calculation. LSH breached that duty by preparing a DRC valuation and failing to make proper planning enquiries, resulting in undervaluation. Wasps relied on the valuation in the asset transfer and suffered loss. The scope of duty included foreseeable reliance for fundraising. NGJ's advice was not found to be negligent in the context of instructions and limitations imposed by Wasps.

Court Disposition

Judgment for the Claimants against LSH; LSH found negligent. NGJ not found liable to contribute.

Orders

  • LSH to pay damages to Wasps for loss caused by negligent valuation
  • No order for contribution against NGJ