Cases - Finance for Mortgages Ltd v Farley & Co

Record details

Name

Finance for Mortgages Ltd v Farley & Co

Date

[1996]

Citation

EGCS 35

Legislation

Limitation Act 1980

Keywords

Negligence in valuations and surveys

Summary

In July 1987 the claimant lenders made a mortgage loan on a residential property, relying on a valuation provided by the defendants. In April 1994 (more than 6 years later, and therefore outside the basic limitation period) the claimants started a negligence action against the valuers. The question arose of whether the claimants had knowledge of the material facts about their claim more than 3 years before they started legal proceedings. The evidence showed that, in 1990, the lenders were aware that the police were investigating suspected mortgage fraud in relation to the property in question. It was held that a reasonable lender, on learning this, would have repossessed the property and would then have discovered negligence on the part of the mortgage valuer. The 3-year period therefore ran from the date on which this should have been done and had expired by 1994.