Wasps Football Club, Trustees of v Lambert Smith Hampton Group Ltd.

Wasps Football Club, Trustees of v Lambert Smith Hampton Group Ltd.

LSH owed Wasps a duty to provide a valuation suitable for transactional reliance, not limited to CGT purposes. LSH breached its duty by negligently undervaluing the ground, failing to make proper planning enquiries, and not identifying development potential. The loss suffered by Wasps—disposal of the ground at an undervalue—fell within the scope of LSH's duty. Wasps was not contributorily negligent and did not fail to mitigate. NGJ was not negligent and owed no contribution. Damages are assessed as the difference between the negligent valuation (£832,500) and the proper valuation (£3,250,000), namely £2,417,500, with interest from 1 January 1997.

Parties
Claimants: 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
Civil (professional Negligence) / Judgment After Trial
Outcome
Judgment for Claimants against LSH; Part 20 claim against NGJ dismissed.
Legal Topics
Valuation Negligence, Solicitor's Duty of Care, Damages Assessment, Scope of Duty, Contributory Negligence, Mitigation of Loss
Professional Negligence Contract Law Tort Law Valuation Negligence Solicitor's Duty of Care Damages Assessment Scope of Duty Contributory Negligence +1 more

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Parties

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

Claimants

Lambert Smith Hampton Group Limited

Defendant/part 20 Claimant

Nicholson Graham & Jones

Part 20 Defendant

Procedural Posture

Civil (professional Negligence) / Judgment After Trial

Legal Issues

  1. 1 Whether LSH was negligent in its valuation of Wasps' ground in March 1996 and the scope of its duty to Wasps;
  2. 2 Whether any loss suffered by Wasps falls within the scope of LSH's duty;
  3. 3 Whether Wasps was contributorily negligent or failed to mitigate its loss;

Ratio Decidendi

LSH owed Wasps a duty to provide a valuation suitable for transactional reliance, not limited to CGT purposes. LSH breached its duty by negligently undervaluing the ground, failing to make proper planning enquiries, and not identifying development potential. The loss suffered by Wasps—disposal of the ground at an undervalue—fell within the scope of LSH's duty. Wasps was not contributorily negligent and did not fail to mitigate. NGJ was not negligent and owed no contribution. Damages are assessed as the difference between the negligent valuation (£832,500) and the proper valuation (£3,250,000), namely £2,417,500, with interest from 1 January 1997.

Court Disposition

Judgment for Claimants against LSH; Part 20 claim against NGJ dismissed.

Orders

  • Damages awarded to Wasps in the sum of £2,417,500, with interest from 1 January 1997.
  • No deduction for contributory negligence or mitigation failure.