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A recent case involving a negligent conveyancer shows how difficult it can be to assess damages. The case involved a licenced conveyancer whose client was buying a cottage with a view to redeveloping it, and also acquiring an option to buy adjacent land. The conveyancer was negligent and the option was ineffective. The client claimed damages on the basis that he would have gone ahead with a substantial redevelopment.
The court agreed, but then assessed damages as follows: there had been an 85% chance of the client securing a watertight and exercisable option from the seller; there would have been a 40% chance of then getting planning permission for the intended redevelopment; and there would then have been an 85% chance of securing the funding needed. Applying all those percentages together, resulted in a 29% overall chance of the redevelopment proceeding, and thus the claimant would get 29% of the anticipated profit. But, the court noted that the claimant could have gone ahead with a smaller redevelopment which would have produced a profit, and that profit should therefore also be deducted from the 29%. Joyce v Bowman Law Ltd [2010] EWHC 251 (Ch) (access free at www.practicalconveyancing.co.uk).
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June 2010 |