October 3, 2025
South Australian Asset Management Corp v York Montagu Ltd [1996] UKHL 10
A lender sued a valuer for a negligent overvaluation after the property market fell and the borrower defaulted. The House of Lords held the valuer's liability was limited to the consequences of the inaccurate valuation, not losses from the market fall. Facts This House of Lords judgment concerned three conjoined appeals all dealing with the same essential issue. In each case, a lender financed a property acquisition, taking a mortgage over the property as security. The lender commissioned a valuation from the defendant valuers before advancing the funds. The valuers negligently provided a valuation that was significantly higher than the
