Controversial but-for test for professional negligence clarified

Tiuta International Ltd v De Villiers Surveyors Ltd [2016] EWCA Civ 661, 1 July 2016

The dispute concerned De Villiers’ valuation of a partially completed residential development for Tiuta, who provided loan facilities to the developer. In February 2011, De Villiers valued the property at £3.25 million in its current condition and £4.9 million on completion, and Tiuta advanced a loan of about £2.5 million to the developer. In a second valuation in December 2011, De Villiers valued the property at £3.5 million in its current condition and £4.9 million on completion, and on that basis, Tiuta refinanced the facility and increased the amount to over £3 million. Unfortunately, the developer failed to repay about £2.84 million of the loan, and upon selling the property, only about £2.1 million was realised.