Cases - Liberty Syndicate Management Ltd v Campagna Ltd

Record details

Name

Liberty Syndicate Management Ltd v Campagna Ltd

Date

[2011]

Citation

EWHC 209 (TCC)

Keywords

Negligence in valuations and surveys

Summary

The claimant ‘L’ provided insurance cover for latent defects in residential properties. L engaged the defendant technical auditors ‘C’ to inspect the properties prior to issuing cover. L was faced with numerous claims for latent defects in respect of properties inspected by C and considered that C had been negligent in certifying that the properties were satisfactorily completed. L submitted that technical auditors owed similar duties (either in tort or as an implied term under the contract) as building surveyors, namely to thoroughly inspect the properties and to inform L of any defects.

It was held that the role of the technical auditors in this case was to inspect the properties for defects in design or workmanship that might give rise to a claim under the insurance policy. C did not warrant that the properties would be defect free. The duty was to exercise reasonable care and skill in the inspection of the properties and to ensure that they represented no more than the standard risk for that type of insurance. It was a limited role and did not extend to ensuring compliance with specific building regulations or other matters of ‘minutiae’ that might apply to a building control officer or local authority inspector. On the evidence, however, a proper inspection to that standard would have identified defects not picked up by C and C was accordingly held liable.