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Izzard v Field Palmer

2 November 2000
The issues

Surveyors – professional negligence – negligence over valuation of system build property

The facts

The Defendant Surveyors were retained by the Mortgagee to carry out a valuation report on a maisonette. The report valued the property at £42,000.00. Structural defects were subsequently discovered. The property was let then re-possessed and sold by the Mortgagee for £6,000.00. The Defendant was found to be negligent as to the state of knowledge of the type of structure in question as at 1998. The actual valuation was accepted as £14,000.00. The Defendant appealed against liability and the quantum judgment of £67,859.00 inclusive of interest and costs allowed under 4 heads:-

a) Difference between the mortgage valuation of £42,000.00 and the expert’s figure of £14,000.00.

b) A sum allowed for heating appliances.

c) Actual mortgage payments less rent receipts

d) Second Bank loan taken out by the Purchaser.

The decision

The appeal against liability was dismissed.

The Appeal against quantum was allowed. No award should have been made under (c) as this represented a loss already compensated under (a) and also because the damages should not have been increased on the basis that the property had been let rather than sold when first vacated. The figure allowed under (d) would also be deleted as no damages should be awarded under that head. Quantum reduced to £28,250.00

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