Same But For Test Of Causation But Different Outcome

The Court of Appeal has held that a lender can recover all its loss on a refinance loan from a negligent surveyor and not just the 'top up' advanced following repayment of the original loan.

We first reported on Tiuta International Ltd (In liquidation) v De Villiers Chartered Surveyors in April 2015, from which fuller details of the case can be seen. In brief, the lender refinanced a loan it had made to a property developer in reliance on a valuation by the defendant (the second valuation). The defendant had also undertaken the original valuation (the first valuation). For the purposes of the application before the court, it was assumed that the first loan was redeemed by the refinancing rather than the original loan agreement being varied. A new agreement and legal charge were entered into. The borrower defaulted.