Report, Reliance, Refinance… Recovery

A Court of Appeal judgment has considered the application of the "but for" test of causation in a lender claim against valuers involving an alleged refinance loan. It overturns an earlier summary judgment decision where the lender's loss in respect of a second valuation was restricted to any loss caused by the extra lending. The appeal court's interpretation of the "but for" test now means that the surveyor could be liable to the lender for the entire loss flowing from the second valuation, including in respect of monies used to redeem the prior loan. The judgment has caused a stir in the valuing community but it needs to be kept in mind that the decision was one on specific assumed facts.