Cases - Nykredit Mortgage Bank plc v Edward Erdman Group Ltd

Record details

Name
Nykredit Mortgage Bank plc v Edward Erdman Group Ltd
Date
(1 October 1993 unreported)
Keywords
Negligence in valuations and surveys
Summary

The defendants carried out a residual valuation of a development site for the claimant lender. They were held to have been negligent for taking an unreasonably optimistic view of the likely demand for office accommodation in the area and also for miscalculating the potential costs of the proposed redevelopment.

The defendant valuers' expert witness suggested that a bracket equating to 18.7% would be justified. However, the judge refused to allow more than 15%.