Building Law Monthly
Absence of reliance fatal to negligent mis-statement claim
In Hunt v Optima (Cambridge) Ltd [2014] EWCA Civ 714 the Court of Appeal held that the defendants were not liable in negligence
to the claimant leaseholders arising out of ‘architects certificates’ issued by the defendants for the benefit of the purchasers
of flats and their lenders. The critical factor in negating liability was that the reports were issued after the completion
of the transactions under which the claimants acquired their interests in the flats and so it could not be said that the claimants
had relied upon the reports in entering into the transactions to buy the properties in question. The claimants could not therefore
bring a claim in negligent misstatement, nor were they able to establish the existence of a tortious duty of inspection owed
by the defendants independent of any reliance upon the certificate issued by the defendants. Finally, it was held that the
certificates issued by the defendants did not amount to a warranty given to the claimants because of the absence of any promises,
warranties or guarantees in the certificates.