Tiuta International Ltd v De Villiers Surveyors Ltd

Tiuta International Ltd v De Villiers Surveyors Ltd

The 'but for' test of causation applies, but when correctly applied to the facts of this case, the respondent is liable for the whole of the loss flowing from the second negligent valuation, as the second loan was a separate transaction used to discharge the first loan, and the loss is measured by the amount of the second loan less the true value of the security.

Parties
Claimant/appellant: Tiuta International Ltd (in liquidation); Defendant/respondent: De Villiers Surveyors Ltd
Jurisdiction
England and Wales
Judgment Date
01 July 2016
Procedural Posture
Civil Appeal / Appeal From Summary Judgment
Outcome
appeal allowed (majority)
Legal Topics
Causation, Measure of Damages, Valuation Negligence, Refinancing Transactions
Professional Negligence Banking and Finance Causation Measure of Damages Valuation Negligence Refinancing Transactions

Case Brief

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Parties

Tiuta International Ltd (in liquidation)

Claimant/appellant

De Villiers Surveyors Ltd

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From Summary Judgment

Legal Issues

  1. 1 Whether the respondent surveyor is liable for the whole loss flowing from a negligent valuation in a refinancing transaction or only for the additional lending beyond the original loan
  2. 2 Whether the 'but for' test of causation applies to the loss claimed in the context of refinancing and replacement loans

Ratio Decidendi

The 'but for' test of causation applies, but when correctly applied to the facts of this case, the respondent is liable for the whole of the loss flowing from the second negligent valuation, as the second loan was a separate transaction used to discharge the first loan, and the loss is measured by the amount of the second loan less the true value of the security.

Court Disposition

appeal allowed (majority)

Orders

  • Summary judgment for the respondent set aside
  • Case to proceed to trial on the facts