SURVEYOR HAS INHERENT OBLIGATION TO INSPECT AND VALUE THE RIGHT PROPERTY

Platform Funding Ltd v Bank of Scotland plc [2008] EWCA Civ 930, [2009] 2 All ER 344

In Platform Funding Ltd v Bank of Scotland plc [2008] EWCA Civ 930, [2009] 2 All ER 344 the Court of Appeal held, by a majority, that in the normal retainer of a surveyor to inspect and value a property there is an inherent obligation to inspect and value the right property, such that the inspection and valuation of a completely different property is a breach of contract by the surveyor, notwithstanding the fact that it has not been established that the surveyor failed to act with reasonable care when visiting the wrong property. It followed that the defendant surveyor, who had visited the wrong property as a result of the deception of a third party, was liable to the claimant in damages. A valuer who wishes to avoid the imposition of such an unqualified obligation must insert an appropriately drafted term in its retainer to limit its obligation to one to exercise reasonable skill and care in the location of the property to be valued.