Raja v Austin Gray (a firm) [2002] EWCA Civ 1965 (19 December 2002)

Raja v Austin Gray (a firm) [2002] EWCA Civ 1965 (19 December 2002)

It is not fair, just, or reasonable to impose a duty of care at common law on valuers appointed by receivers directly to the property owner, as the owner is adequately protected by remedies against the mortgagee and receiver for negligent sale, and there is insufficient proximity or assumption of responsibility between valuers and owner.

Citation
[2002] EWCA Civ 1965
Parties
Claimant/respondent: Mrs Starbibi Raja (Administratrix of the Estate of the Late Mohammed Sabir Raja); Defendants/appellants: Austin Gray (A Firm)
Jurisdiction
England and Wales
Judgment Date
19 December 2002
Procedural Posture
Appeal / Appeal From Determination of Preliminary Issue in Queen's Bench Division
Outcome
Appeal allowed
Legal Topics
Duty of Care, Negligence, Mortgagee's Power of Sale, Receivership, Valuation Agents, Equitable Duties
Tort Law Equity Property Law Duty of Care Negligence Mortgagee's Power of Sale Receivership Valuation Agents +1 more

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Parties

Mrs Starbibi Raja (Administratrix of the Estate of the Late Mohammed Sabir Raja)

Claimant/respondent

Austin Gray (A Firm)

Defendants/appellants

Procedural Posture

Appeal / Appeal From Determination of Preliminary Issue in Queen's Bench Division

Legal Issues

  1. 1 Whether valuers appointed by receivers owe a duty of care to the property owner whose properties are charged as security for a loan
  2. 2 Whether receivers owe a duty in equity to the property owner as well as to the mortgagor company
  3. 3 Whether a duty of care at common law should be imposed on valuers directly to the property owner

Ratio Decidendi

It is not fair, just, or reasonable to impose a duty of care at common law on valuers appointed by receivers directly to the property owner, as the owner is adequately protected by remedies against the mortgagee and receiver for negligent sale, and there is insufficient proximity or assumption of responsibility between valuers and owner.

Court Disposition

Appeal allowed

Orders

  • Appellants' costs of the action to be paid by the Respondent on the standard basis to be assessed if not agreed
  • Application to appeal to the House of Lords refused