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Good news for valuers and their insurers: The Court of Appeal decision in Scullion v Bank of Scotland

June 2011
Paul Redfern and Kristina Vongas

It has been established since the case of Smith v Eric S Bush [1990] 1 AC 831 that when valuing a “dwelling house of modest value” for a building society or local authority, a surveyor may owe a duty of care to the residential purchaser of that property if the surveyor was aware that there was a high degree of probability that the purchaser would rely on the valuation without commissioning an independent survey himself.

We previously reported on the High Court decision in this action, in which the judge extended the application of this duty of care, holding that a surveyor was liable to the purchaser in the context of a buy-to-let property transaction. A unanimous Court of Appeal has now overturned the High Court's decision.

Kristina Vongas and Paul Redfern discuss the Court of Appeal's decision in the attached document.

Location: UK

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