Hunt v Optima (Cambridge) Ltd & Ors [2014] EWCA Civ 714 (31 July 2014)

Hunt v Optima (Cambridge) Ltd & Ors [2014] EWCA Civ 714 (31 July 2014)

The Court of Appeal held that the claimants could not recover damages for negligent misstatement where the certificates were issued after contract and completion, as reliance on the certificates was not possible before their existence. The certificates did not constitute collateral warranties, as they lacked the necessary intention to create contractual relations and consideration. S & P did not owe a dual duty to the claimants in respect of inspection and certificate. The claim by Ms Wyatt was not barred by limitation for the majority of defects due to the operation of the Limitation Act 1980.

Citation
[2014] EWCA Civ 714
Parties
Respondent/claimant: Jonathan Paul Hunt; Respondent/claimant: Alan Bedwell; Respondent/claimant: Toshi Sahi; Respondent/claimant: Penny Sahi; Respondent/claimant: Nicola Ransome; Respondent/claimant: Diana Wyatt; Respondent/claimant: Michael Peace; Respondent/claimant: Mary Peace; Appellant/defendant: Optima (Cambridge) Limited; Appellant/defendant: Strutt & Parker (a Firm); Appellant/defendant: Mr S. Egford; Appellant/defendant: Strutt & Parker LLP
Jurisdiction
England and Wales
Judgment Date
31 July 2014
Procedural Posture
Appeal (civil) / Court of Appeal Judgment
Outcome
Appeal allowed in part; claims against S & P for negligent misstatement and collateral warranty dismissed for claimants who received certificates after contract and completion.
Legal Topics
Negligent Misstatement, Collateral Warranty, Limitation, Duty of Care, Reliance, Professional Certificates
Tort Contract Professional Negligence Construction Law Negligent Misstatement Collateral Warranty Limitation Duty of Care +2 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 4 Authorities cited 11 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Jonathan Paul Hunt

Respondent/claimant

Alan Bedwell

Respondent/claimant

Toshi Sahi

Respondent/claimant

Penny Sahi

Respondent/claimant

Nicola Ransome

Respondent/claimant

Diana Wyatt

Respondent/claimant

Michael Peace

Respondent/claimant

Mary Peace

Respondent/claimant

Optima (Cambridge) Limited

Appellant/defendant

Strutt & Parker (a Firm)

Appellant/defendant

Mr S. Egford

Appellant/defendant

Strutt & Parker LLP

Appellant/defendant

Procedural Posture

Appeal (civil) / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the claimants could recover damages for negligent misstatement when the certificates were issued after contract and completion
  2. 2 Whether the certificates constituted collateral warranties
  3. 3 Whether S & P owed a dual duty to take care in inspection and in the making of certificates

Ratio Decidendi

The Court of Appeal held that the claimants could not recover damages for negligent misstatement where the certificates were issued after contract and completion, as reliance on the certificates was not possible before their existence. The certificates did not constitute collateral warranties, as they lacked the necessary intention to create contractual relations and consideration. S & P did not owe a dual duty to the claimants in respect of inspection and certificate. The claim by Ms Wyatt was not barred by limitation for the majority of defects due to the operation of the Limitation Act 1980.

Court Disposition

Appeal allowed in part; claims against S & P for negligent misstatement and collateral warranty dismissed for claimants who received certificates after contract and completion.

Orders

  • Judgment against S & P in favour of claimants (other than Mr and Mrs Sahi) set aside.
  • No liability for S & P in negligent misstatement or collateral warranty for certificates issued after contract.