CASE

Mrs Fidel wants to buy Mr Goodman's house. Mr Goodman appoints Mr Delmonte, a surveyor, to assess the value of the house. Mr Delmonte estimates the value of the house at €700,000. In making his valuation he fails to take into account both the sharp decline in house prices in the neighbourhood in the last month and a remark in an inspection report mentioning heavy soil contamination. Based on Mr Delmonte's valuation report, Mrs Fidel purchases the house for €695,000. The bank, having seen the valuation report, provides a loan to Mrs Fidel for the same amount and takes a security over the house. Three months later, Mrs Fidel is fired from her job, and is forced to sell the house. She decides to do this, as she knows the bank will foreclose when she cannot make her loan repayments, and that this will result in additional costs. She sells the house for only €575,000, and is unable to repay the bank the residual debt.

Question

Assuming there is professional negligence on the part of Mr Delmonte, who can sue him for damages?

DISCUSSIONS

BELGIUM

Siel Demeyere and Vincent Sagaert

I. Operative Rules

Both Mrs Fidel and the bank can sue Mr Delmonte.

Descriptive Formants

Firstly, the professional negligence by Mr Delmonte constitutes a breach of the contract with Mr Goodman. However, Mr Goodman suffered no damage, and was even able to realise extra profit from the sale, thanks to the overvaluation of his house.