Valuer Negligence

LM Investment Management (in liq) v BMT [2015] NSWSC 1902

The lender in liquidation (previously the RE for the LM First Mortgage Income Fund) advanced $23m to a developer secured over the land purchased and sued its surveyors for an alleged negligent valuation of works and also sued for misleading and deceptive conduct. The surveyor raised various defences, namely that its conduct did not cause …

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Dreger v Rural Valuations [2015] NSWSC 1338

A lender sued a valuer for negligence. The court held that the valuation was outside the range which could properly have been arrived at by a competent valuer. When the borrower went into default, the lender obtained possession and could only obtain a price significantly less than the valuation. The lender’s expert witness said that …

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Casteran v Rural Valuations [2015] NSWSC 1337

A lender sued a valuer for negligence. The court held that the valuation was outside the range which could properly have been arrived at by a competent valuer. The valuer failed to appear. When the borrower went into default, the lender obtained possession and could only obtain a price significantly less than the valuation. The …

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Bank of Western Australia v Liu & anor [2014] QSC 318

The borrower argued that by obtaining a Herron Todd White valuation of $3.8 million and providing it to the borrowers with an offer to lend $2.6 million, the bank impliedly warranted the 2007 valuation and its methodology. In considering this claim the judge noted that the borrowers had contracted to buy the the property for …

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Kovarfi v BMT [2014] NSWSC 100

Developers borrowed money to fund a development, the project over-ran and according to a valuation report would have required more money to complete than the undrawn loan moneys. The bank called in the loan and sold the property at a loss. The developers who gave personal guarantees went bankrupt. The developers sued the valuer for …

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AE Consulting v Online Valuations [2012] NSWSC 1300

The borrower defaulted and the lender sold the property for far less than its valuation. The lender sought default judgment against the valuer for a liquidated sum. The court found that the claim was on unliquidated damages, noting: The mere fact that calculation can be made of the precise amount of damages that are alleged …

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Gippsreal Ltd v Hausfeld Johnson Pty Ltd [2012] FCA 956

A managed investment scheme loaned reliance on a rural NSW properties and suffered severe losses when the security proved to be worth much less than the valuations. The responsible entity of the scheme sued the valuer claiming misleading conduct and breach of contract. The valuer made a late application to plead that the officers (MD, …

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Manday Investments v CBA [2012] FCA 751

The borrower sued the bank and a valuer. The borrower argued that because the security was undervalued, the bank withdrew its financial support for the borrower resulting in its needing to sell assets below value in a fire sale environment. Causation ArgumentThe bank and the valuer argued that summary judgment should be granted because the …

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Provident Capital v John Virtue (No 2) [2012] NSWSC 319

The lender sued the valuer for negligence. The valuer used the residual site feasibility method of valuing the site (using the pre-sales as an indicator of the value of the finished units) instead of using the comparable approach. On the question of negligence the lender argued the valuer should have used the comparable method, or …

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Propell National Valuers v Australian Executor Trustees [2012] FCAFC 31

The lender sued the valuer and the company he worked for negligence and misleading and deceptive conduct under the Trade Practices Act. Are subsequent sales relevant to the question of negligence?The valuer appealed on the grounds that the trial judge disregarded subsequent sales figures in determining whether the valuation was negligent. The appeal court pointed …

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