Raja v Austin Gray (a firm)

326 words (1 pages) Case Summary in Cases

12/10/18 Cases Reference this

Disclaimer: This work was produced by one of our professional writers as a learning aid to help you with your studies.

Any opinions, findings, conclusions or recommendations expressed in this material are those of the author and do not necessarily reflect the views of Parallelewelten.net.

If you would like to view samples of the work produced by our academic writers please click here.

Raja v Austin Gray (a firm) [2002] EWCA Civ 1965

ADMINISTRATIVE RECEIVERS – DUTY OF CARE – EQUITY OF REDEMPTION – MORTAGGEES’ POWERS AND DUTIES – POWER OF SALE – VALUATION

Facts

D had secured borrowings from a bank by a debenture, under the terms of which administrative receivers of D's assets were appointed. D became entitled to exercise its power of sale over the properties, and the receivers instructed A to value them and assist in their sale. The proceeds did not discharge R's debt to D, and R brought an action against the receivers and D alleging the sale had been at an undervalue. R's debt to D was extinguished by settlement of the action, and R then began the claim against A.

Issue

The primary issue raised on appeal was whether, and in what circumstances, valuers appointed by administrative receivers of a company owe a duty of care to the owner of properties when those properties are charged to the company as a security for a loan and the valuers are appointed by the receivers for the purposes of valuing those properties

Held

In finding for [A] the Court of Appeal held that the receivers did in fact owe a duty in equity to R as the legal and beneficial owner of the properties and as somebody with an interest in the equity of redemption; Medforth v Blake [1999] EWCA Civ 1482 applied. Moreover, if V had been negligent in valuing the properties, R and D would have been in breach of their duty to [A] to take reasonable care to obtain the best possible price; A receiver or mortgagee could not escape such liability by asserting that he had retained a competent professional to assist in exercising the power of sale.

Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.

Related Services

View all

DMCA / Removal Request

If you are the original writer of this essay and no longer wish to have the essay published on the UK Essays website then please.

Current Offers