Blemain Finance Ltd v E.Surv Ltd

Blemain Finance Ltd v E.Surv Ltd

E. Surv's valuation of £3.4 million was negligent as it was outside the reasonable margin of error and not supported by proper methodology or comparables; Blemain relied on this negligent valuation to make the loan, and the allegations of contributory negligence failed because E. Surv could not show that no reasonable lender would have made the loan in the circumstances.

Parties
Claimant: Blemain Finance Limited; Defendant: E. Surv Limited
Jurisdiction
England and Wales
Judgment Date
20 December 2012
Procedural Posture
Civil / Judgment After Trial
Outcome
Claim allowed; contributory negligence defence dismissed
Legal Topics
Professional Negligence, Valuation Negligence, Contributory Negligence, Lending Policy, Duty of Care

Case Brief

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Parties

Blemain Finance Limited

Claimant

E. Surv Limited

Defendant

Procedural Posture

Civil / Judgment After Trial

  1. 1 Whether E. Surv was negligent in its valuation of the property for Blemain
  2. 2 Whether Blemain was contributorily negligent in making the loan to the Shermans

Ratio Decidendi

E. Surv's valuation of £3.4 million was negligent as it was outside the reasonable margin of error and not supported by proper methodology or comparables; Blemain relied on this negligent valuation to make the loan, and the allegations of contributory negligence failed because E. Surv could not show that no reasonable lender would have made the loan in the circumstances.

Court Disposition

Claim allowed; contributory negligence defence dismissed

Orders

  • Judgment for Blemain Finance Limited for £301,194.89 in damages
  • Interest to be agreed by parties