Santander UK Plc v Allied Surveyors Scotland Plc [2011] ScotCS CSOH_13 (25 January 2011)

Santander UK Plc v Allied Surveyors Scotland Plc [2011] ScotCS CSOH_13 (25 January 2011)

The cause of action arose in October 2001 when Girobank lent £225,000 on the basis of a negligent valuation, as the value of the rights acquired (security, personal bond, guarantee) was only £125,000, resulting in immediate loss. The claim is therefore time-barred by the short negative prescription, as the action was not raised within five years of that date.

Citation
[2011] ScotCS CSOH_13
Parties
Pursuer: Santander UK Plc; Defender: Allied Surveyors Scotland Plc
Jurisdiction
Scotland
Judgment Date
25 January 2011
Procedural Posture
Civil Contractual Claim / Preliminary Proof on Prescription (time Bar)
Outcome
Action dismissed as time-barred (prescribed)
Legal Topics
Prescription and Limitation, Negligent Valuation, Measure of Damages, Concurrence of Iniuria and Damnum
Contract Law Professional Negligence Banking Law Prescription and Limitation Negligent Valuation Measure of Damages Concurrence of Iniuria and Damnum

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Parties

Santander UK Plc

Pursuer

Allied Surveyors Scotland Plc

Defender

Procedural Posture

Civil Contractual Claim / Preliminary Proof on Prescription (time Bar)

Legal Issues

  1. 1 When did the cause of action arise for prescription purposes in a claim for negligent valuation?
  2. 2 Did loss occur at the time of the loan or only upon borrower default?
  3. 3 What is the correct method for valuing the lender's bundle of rights for prescription analysis?

Ratio Decidendi

The cause of action arose in October 2001 when Girobank lent £225,000 on the basis of a negligent valuation, as the value of the rights acquired (security, personal bond, guarantee) was only £125,000, resulting in immediate loss. The claim is therefore time-barred by the short negative prescription, as the action was not raised within five years of that date.

Court Disposition

Action dismissed as time-barred (prescribed)

Orders

  • Sustains defenders' second plea-in-law (prescription)
  • Dismisses the action