Britannia -v- Milborn 31-Aug-2006 [2006] JRC 120 (31 August 2006)

Britannia -v- Milborn 31-Aug-2006 [2006] JRC 120 (31 August 2006)

HPF's valuation of £4 million was not based on a rational or professional assessment but was constructed to justify the loan amount required by Mr. Milborn and Britannia's lending criteria. HPF acted as Britannia's agent, and the valuation was supplied to Mr. Milborn for his benefit and with the intention he should rely on it. Mr. Milborn did rely on the valuation in entering the mortgage and purchase. The valuation constituted a pre-contractual misrepresentation, alternatively a breach of collateral contract or duty of care, for which Britannia is liable in damages. No actionable representation was established regarding future rental income.

Citation
[2006] JRC 120
Parties
Plaintiff: Britannia Building Society; Defendant/counter Claimant: Simon Milborn
Jurisdiction
Jersey
Judgment Date
31 August 2006
Procedural Posture
Civil / Liability Trial (issues of Liability Only, Damages Reserved)
Outcome
Liability found against Britannia on the counter-claim for misrepresentation and/or breach of duty; damages to be determined at a later stage.
Legal Topics
Misrepresentation, Agency, Valuation Negligence, Collateral Contract, Duty of Care, Pre Contractual Statements
Contract Law Tort Law Banking and Finance Law Property Law Misrepresentation Agency Valuation Negligence Collateral Contract +2 more

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Parties

Britannia Building Society

Plaintiff

Simon Milborn

Defendant/counter Claimant

Procedural Posture

Civil / Liability Trial (issues of Liability Only, Damages Reserved)

Legal Issues

  1. 1 Whether HPF's valuation constituted a misrepresentation or breach of duty by Britannia
  2. 2 Whether HPF acted as Britannia's agent in providing the valuation and advice to Mr. Milborn
  3. 3 Whether Mr. Milborn relied on the valuation in entering the mortgage and purchase

Ratio Decidendi

HPF's valuation of £4 million was not based on a rational or professional assessment but was constructed to justify the loan amount required by Mr. Milborn and Britannia's lending criteria. HPF acted as Britannia's agent, and the valuation was supplied to Mr. Milborn for his benefit and with the intention he should rely on it. Mr. Milborn did rely on the valuation in entering the mortgage and purchase. The valuation constituted a pre-contractual misrepresentation, alternatively a breach of collateral contract or duty of care, for which Britannia is liable in damages. No actionable representation was established regarding future rental income.

Court Disposition

Liability found against Britannia on the counter-claim for misrepresentation and/or breach of duty; damages to be determined at a later stage.

Orders

  • Britannia found liable to Mr. Milborn for damages for misrepresentation and/or breach of duty; quantum of damages reserved for future determination.