Cases - Secured Residential Funding plc v Nationwide Building Society (No 2)

Record details

Name

Secured Residential Funding plc v Nationwide Building Society (No 2)

Date

[1998]

Citation

EGCS 64

Keywords

Negligence in valuations and surveys

Summary

In this completely separate case, which merely happened to concern the same parties as Secured Residential Funding plc v Nationwide Building Society, the facts were similar but the case was differently argued by the claimant's lawyers. The court held that, in commissioning a mortgage valuation from the defendant valuers (which was alleged to have been negligently carried out), the company had acted as agent for the unknown lender.

The lender was accordingly an 'undisclosed principal' and, under the law of agency, was entitled to sue the valuers for breach of the contract which had been made by its agent on its behalf.