Event and Time
Event Description
The case revolves around a claim of professional negligence against valuers by a lender, after the mortgaged property was sold for significantly less than its appraised value. The key issue is determining when the lender's cause of action accrued regarding the alleged negligent valuation.
Application and Claims
- The plaintiff (lender) claimed that the valuer had a duty of care to provide an accurate valuation for mortgage security purposes.
- The plaintiff argues that the cause of action for negligence arose at the time the property was sold or when it became clear that they could not recover the shortfall from the mortgagor.
- The valuer (defendant) contended that the cause of action only arose when the loss was ascertainable, thus arguing that the plaintiff's claims were statute barred.
Judicial Decisions
1. The court determined that the plaintiff sustained loss at the time of the sale of the property (23 May 2012). 2. The plaintiff’s claims against the defendant were found to be statute barred as a result of that determination. 3. Costs were ordered in favor of the valuer for the hearing of the separate question. 4. Proceedings were dismissed with costs.
Dispute Points and Legal Basis
Dispute Points
- Plaintiff's Claims:
- Asserted that negative consequences from the negligent valuation manifest at the sale date. - Argued that the sale's outcome was a direct result of the valuer's negligence, constituting sustained loss.
- Defendant's Argument:
- Contended that the cause of action only arises once the loss becomes ascertainable, which would imply it was not clear from the outset of the sale. - Claimed that until the lender could definitively establish they could not recover the shortfall under the personal covenant of the mortgagor, the claims would not be valid.