McKinlay v Nexia Smith & Williamson Audit Ltd
The defendant's valuation of £128 per share was below the lowest reasonable range any competent valuer could have reached, given the admitted negligence and failure to consider material factors. The correct value was £635 per share as at 15 June 2004, and the claimant is entitled to damages for the difference.
- Parties
- Claimant: Craig Guy McKinlay; Defendant: Nexia Smith & Williamson Audit Limited
- Jurisdiction
- England and Wales
- Judgment Date
- 18 July 2008
- Procedural Posture
- Civil / Judgment After Trial
- Outcome
- Claim allowed
- Legal Topics
- Negligent Valuation, Damages, Shareholder Rights, Expert Evidence
Case Brief
Summary, issues, holding and outcome
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Parties
Craig Guy McKinlay
Claimant
Nexia Smith & Williamson Audit Limited
Defendant
Procedural Posture
Civil / Judgment After Trial
Legal Issues
- 1 Whether the defendant was negligent in valuing the claimant's shares
- 2 Whether the valuation fell below the range a reasonable valuer could reach
- 3 Proper measure of damages for negligent share valuation
Ratio Decidendi
The defendant's valuation of £128 per share was below the lowest reasonable range any competent valuer could have reached, given the admitted negligence and failure to consider material factors. The correct value was £635 per share as at 15 June 2004, and the claimant is entitled to damages for the difference.
Court Disposition
Claim allowed
Orders
- Judgment for the claimant for £509,535, being the difference between the negligent valuation and the correct valuation as at 15 June 2004.
- Form of order, interest, and costs to be agreed between counsel or determined by the court if not agreed.
Full Case Text
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