Ethics - Negligence

Question 1

What needs to have occurred in order for a negligence claim to be successful?

Answer 1

When a duty of care is breached → loss → damages (negligence claim)

Question 2

What did Yianni v Edwin Evans (1981) establish?

Answer 2

The case established that a residential valuer instructed by a mortgagor lending institution could owe a duty of care in tort to a mortgagee purchaser relying on a valuation

Question 3

What does the Limitation Act 1980 state about the limitation periods for negligence?

Answer 3

Contract - 6 years from the date of the negligent act, breach of contract or omission. Also, Section 14A provides an alternative limitation period of 3 years from the date of knowledge of the damage subject to the 15 years long stop from the negligent act or omission

Tort - 6 years from the date the claimant suffered the loss

Question 4

How can negligence claims be avoided or reduced?

Answer 4

Undertaking the following actions:
• Clearly understand the client’s objectives and confirm precise instructions in writing in the terms of engagement
• Ensure you are competent to undertake the instruction
• Undertake the work in accordance with the relevant RICS advice, to include Professional Standards and Practice information
• Make detailed file notes and take photographs
• Keep up to date with market knowledge and legislation and undertake and record your CPD
• Cap the professional liability excess on your PIl policy in the terms of engagement