Summary

Claims by banks in respect of negligent overvaluation of property inducing them to finance the purchase of same.

Facts

Claim for damages by four plaintiff banks (CBL), (SIB), (CNCA) and (UBK) in respect of allegedly negligent advice given by the thirteen defendants, the first ten being partners in John D Wood (JDW), the eleventh being John Wood Commercial Ltd (JDWCL), the twelfth being James Marland (JM) and thirteenth, Savills Plc (Savills) concerning the financing of the purchase of a property, Hoechst House, Beavers Lane, Hounslow. The allegedly negligent advice was as to the overvaluation of these properties leading to the plaintiff banks financing the purchase. The bank's claimed damages from JM and Savills on the basis that that the banks relied on the advice given by JM in endorsing the valuation of #24m made by JDW which was a gross overvaluation.

Held

JM's endorsement of his report of the JDW valuation was a misrepresentation of his real opinion of that valuation and was materially misleading to the banks. The advice given by JM and Savills was negligent. Each bank did place the necessary reliance on JM's report to entitle them to substantial damages. The banks were not the authors of their own misfortune as submitted for the defendants. Judgment for the plaintiffs against JM and Savills.