Cases - Eagle Star Insurance Co v Gale and Power

Record details

Name
Eagle Star Insurance Co v Gale and Power
Date
(1955)
Citation
166 EG 37
Keywords
Negligence in valuations and surveys
Summary

The claimant lender brought an action for a negligent overvaluation against the defendant valuers, at a time when the borrower had not yet defaulted in his repayments under the mortgage and there were no indications that he was likely to do so. The terms of the mortgage stipulated for repayment of approximately one-half of the capital (£1,500 out of a loan of £3,015) after 4 years and, provided that this duly took place, the value of the property would then provide ample security for the remaining loan. The judge accordingly awarded the lenders £100 damages as compensation for what was perceived to be a fairly small risk, namely the chance that the borrower might yet default in making the agreed repayment.