Valuer Negligence

Valcorp Australia v Angas Securities [2012] FCAFC 22

The lender advanced $2.3m on a first mortgage on the basis of a $3.6m valuation. The lender ultimately the security for $1.7m. The first, second and third mortgagees all sued the valuer. The trial judge found the valuer was found guilty of misleading and deceptive conduct and negligent. The valuer had negligently treated another property …

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Mitchell Morgan Nominees v Vella [2011] NSWCA 390

This Court of Appeal decision involved a forged mortgage. The lender’s solicitor chose to use an all monies mortgage which meant the mortgage was unenforceable. Had the solicitor used security documents which contained their vital covenants within the registered mortgage, then the mortgage would have been indefeasible and the mortgage would have been enforceable. The …

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Kayteal v Dignan [2011] NSWSC 197

The lender relied on a valuation in entering into the mortgage. The valuation indicated the property was worth $1.2million when in fact it was only worth $52,000. The claim against the valuer settled. The lender then proceeded against the solicitor who acted for them on the advance. The solicitor had noticed inconsistencies between the property …

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Angas Securities v Valcorp Australia [2011] FCA 190

This is a case of a negligent valuation of a property provided as security for a loan, where there were three contributory lenders. The court held the valuation contravened s52 of the Trade Practices Act 1974 (Cth) and s56 of the Fair Trading Act 1987 (SA). This made it unnecessary to consider the claims in …

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Waldron v GR Finance [2011] FCA 128

The lender obtained judgment for a monetary sum against the borrowers. It then pursued a professional negligence claim against the valuer who initially valued the property. The valuation proceedings were settled. The lender sought to bankrupt the borrower. The borrowers argued the lender could not claim the full amount from them as it had the …

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Macquarie Bank v Meinhardt (NSW) [2010] NSWSC 1228

Macquarie brought proceedings against an engineering business which provided certifications in relation to hydraulics works on the security site. The bank was financing a project for the conversion of an industrial building to a strata-titled residential complex and required the borrower to arrange for an expert hydraulics engineer to certify the hydraulics works on the …

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Genworth Financial Mortgage Insurance v Hodder Rook [2010] NSWSC 1043

Genworth paid out on a Lenders Mortgage Insurance Policy and then sued the valuer for negligence. It seems that the valuer’s P/I insurer refused to respond as the valuer conducted his defence as litigant-in-person. That may have been because the valuation was not co-signed by a director of the valuation company. At least that was …

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Kestrel Holdings v APF Properties [2009] FCAFC 144

In this case the valuer was sued for basing his valuation on an overstatement of the croppable area on a farm. The valuer had prepared the valuation so that it could be used by a vendor and purchaser to fix a price between them. Duty of care The Court summarized the current state of the …

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Genworth Financial Mortgage Insurance v Clisdell [2009] FCA 1014

In this case Genworth was suing to recover money paid out on mortgage insurances from the valuer. The trial was allocated six days but on the first morning the valuer’s legal representatives sought to amend their defence to include 140 new paragraphs, being a detailed set of allegations against various parties, in effect, alleging fraud …

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