NEGLIGENCE

Employed surveyor making mortgage valuation report for lender surveyor negligent personally liable to purchasers Merrett v Babb: CA (Aldous and May LJJ and Wilson J...Employed surveyor making mortgage valuation report for lender surveyor negligent personally liable to purchasers Merrett v Babb: CA (Aldous and May LJJ and Wilson J): 15 February 2001A surveyor employed by a firm of surveyors and valuers made a mortgage valuation report for a building society on a property, knowing that the purchasers would rely on his report rather than pay for their own survey.He failed to report sufficiently on settlement cracks in the building.

The purchasers, a mother and daughter, bought the property which later required essential repairs.

The firm ceased business after the sole principal of the firm was made bankrupt.

The trustee in bankruptcy cancelled the firms professional indemnity insurance without run-off cover.The daughter brought an action for damages against the surveyor personally.

The judge held that the mortgage valuation report had been negligent, and he awarded the claimant 14,500, which was the difference in value between the property as described in the report and its actual value, plus interest.The surveyor appealed, acknowledging negligence, but contending that he owed the purchaser no duty of care and that, in any event, the daughter could only recover damages only in respect of her half interest.Ronald Walker QC and Steven Ball (instructed by CMS Cameron McKenna) for the surveyor.

Paul Tineson (instructed by Hine Downing, Falmouth) for the daughter.Held, dismissing the appeal (Aldous LJ dissenting), that the professional person who carried out the inspection and made the valuation was the person on whom the purchaser relied; that, since the surveyor had signed the report in his personal capacity knowing that the purchasers would rely on it, the responsibility he assumed included a responsibility to the purchasers of which he was in breach; and that the mother would be joined as a claimant and the damages award upheld.