Cases - Platform Home Loans Ltd v Oyston Shipways Ltd
Record details
- Name
- Platform Home Loans Ltd v Oyston Shipways Ltd
- Date
- [1996]; [1999]; [2000]
- Citation
- 2 EGLR 110, CH D; 1 EGLR 77; 2 AC 190, HL
- Legislation
- Keywords
- Negligence in valuations and surveys
- Summary
-
The claimant lenders lost £611,000 on a residential mortgage, having relied on a negligent valuation from the defendants who valued the property at £1.5m when its true value was £1m. The claimants' damages were thus 'capped' at £500,000 (see Liability to lenders), but they were also held responsible for 20% of their loss on the ground of contributory negligence. The Court of Appeal awarded the lender damages of £400,000 (that is, £500,000 less 20%). However, the House of Lords held that this was the wrong approach, and that the reduction of the damages should be made from the lender's total loss, rather than from the 'capped' amount. The correct measure of damages was accordingly £489,000 (that is, £611,000 less 20%).