Cases - Midland Bank plc v Douglas Allen

Record details

Name

Midland Bank plc v Douglas Allen

Date

[1997]

Citation

EGCS 112, QBD

Keywords

Negligence in valuations and surveys

Summary

The claimants were for more than 10 years bankers for a food processing company, in which capacity the claimants provided overdraft facilities secured on the company's factory. When the company became insolvent the claimants sued the defendant valuers for having negligently overvalued the factory. In their defence, the valuers proved that, in addition to the factory, the claimants had the benefit of a personal guarantee of repayment from one of the company directors, but had failed to ensure that this was backed, as had been agreed, by a charge over the director's house. It was held that this failure amounted to contributory negligence, and the bank was held responsible for 30% of its losses.