Damages

Building society lending money on basis of negligent valuers' report - default by borrower - society obtaining sum in settlement from valuers - valuers not entitled to contribution from borrowerHowkins & Harrison (a firm) v Tyler and Another: CA (Sir Richard Scott VC; Aldous and Sedley LJJ): 12 July 2000

In reliance on the claimants' allegedly negligent valuation of a property, a building society advanced in excess of 500,000 to the defendants.

The society suffered a substantial loss when the defendants defaulted on the loan and the property was sold for 250,000.

In full and final settlement of the negligence action brought by the society, the claimants paid 400,000 and then sought a contribution from the defendants pursuant to the Civil Liability (Contribution) Act 1978.

On the hearing of a preliminary issue, the judge held that the claimants were not entitled to a contribution under the 1978 Act.

The claimants appealed.Jonathan Seitler (instructed by Hammond Suddards) for the claimants.

David Fisher (instructed by Simpson & Co, Rugby) for the defendants.Held, dismissing the appeal, that the 1978 Act was intended to deal with cases where damage suffered by the victim could be remedied by one of a number of defendants; that unless a payment by one defendant in satisfaction of his liability reduced the liability of the others then the Act did not apply; that in the instant case the damage for which the defendants were liable was plainly not the same as that for which the claimants were liable; that the society could sue the defendants for the full sum due under the debt without giving credit for the sum received by the claimants, and; that, accordingly, the claimants were not entitled to contribution under the 1978 Act.