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Halifax Building Society & Ors v Edell & Ors (1992)

Summary

Duty of Ombudsman to investigate negligent building society valuations : Duty of Ombudsman to investigate and determine

Facts

Application by building societies to determine whether complaints as to negligent valuations by building society valuers of properties to be charged to the building societies by existing borrowers to secure further advances amounted to maladministration per Sch.12 Pt.III para.1(d)Building Societies Act 1986 which required investigation & determination by the Ombudsman under Clause 14 of the Building Societies Ombudsman Scheme.

Held

In the context of the act they were & the Ombudsman was bound to investigate. This also applied to negligent structural surveys as well so long as they were done by an employee of the building society and were part of an application for a further advance. The same was true of the provision of a house buyer's report in the same circumstances.

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Judgment
28 Feb 1992

Chancery Division
Morritt J

References
[1992] Ch 436

Members
John McGhee QC

Practice areas
Real Estate