Keydon Estates Ltd v Eversheds LLP

Keydon Estates Ltd v Eversheds LLP

The diminution in value rule is not of universal application in cases of solicitor's negligence where the purpose of the transaction was to secure an income stream and the facts show that the claimant would have invested in an alternative property. Damages should be assessed by reference to the loss of the...

Source-derived case information.

Parties
Claimant: Keydon Estates Limited; Defendant: Eversheds LLP
Jurisdiction
England and Wales
Judgment Date
20 May 2005
Procedural Posture
Civil / Judgment After Trial on Assessment of Damages Following Admission of Negligence
Outcome
Claim succeeds on measure of damages; damages awarded as assessed with inquiry directed as to loss of repairing covenant.
Legal Topics
Solicitor's Negligence, Measure of Damages, Loss Assessment, Diminution in Value Rule, Alternative Investment Loss
Tort Contract Professional Negligence Solicitor's Negligence Measure of Damages Loss Assessment Diminution in Value Rule Alternative Investment Loss

Source-derived case record

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 17 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Keydon Estates Limited

Claimant

Eversheds LLP

Defendant

Procedural Posture

Civil / Judgment After Trial on Assessment of Damages Following Admission of Negligence

Legal Issues

  1. 1 What is the proper measure of damages recoverable by Keydon for Eversheds' admitted negligent advice?
  2. 2 Should damages be assessed by the diminution in value rule or by reference to loss of alternative investment income?

Ratio Decidendi

The diminution in value rule is not of universal application in cases of solicitor's negligence where the purpose of the transaction was to secure an income stream and the facts show that the claimant would have invested in an alternative property. Damages should be assessed by reference to the loss of the alternative income stream, discounted to avoid overcompensation, and an inquiry is directed as to the loss of the repairing covenant.

Court Disposition

Claim succeeds on measure of damages; damages awarded as assessed with inquiry directed as to loss of repairing covenant.

Orders

  • Damages recoverable to date assessed at £310,294.31, subject to deduction of £900 received for car park use.
  • Inquiry directed as to damages for loss of repairing covenant.