Cases - Kenney v Hall, Pain & Foster

Record details

Name

Kenney v Hall, Pain & Foster

Date

[1976]

Citation

2 EGLR 29

Keywords

Estate agency - negligence in valuations and surveys

Summary

An unqualified and inexperienced property negotiator, employed by the defendant firm of estate agents, advised the plaintiff that his house was worth about £100,000. The plaintiff put the sale in the hands of the firm, and on the strength of the valuation, overreached himself in purchasing another property by way of a bridging loan before selling the house. Subsequently, the housing market crashed (in late 1973) and he was only able to sell the house for £36,000. The £100,000 was found to be a substantial overvaluation, and the firm was held liable in negligence.

The judge stated that a duty of care existed whether or not the defendants intended to charge a fee for their services, although the valuation is ordinarily treated as a part of the services rendered towards the earning of commission. It followed that the services actually rendered in this case were:

'... pursuant to a contract, which was subject to the usual implied terms contained in every contract for professional services, namely that the professional man would exercise reasonable care and skill in and about the services so rendered.'