{"id":5075,"date":"2018-10-12T12:38:31","date_gmt":"2018-10-12T12:38:31","guid":{"rendered":""},"modified":"2019-06-17T12:43:10","modified_gmt":"2019-06-17T12:43:10","slug":"raja-v-austin-gray","status":"publish","type":"post","link":"https:\/\/www.lawteacher.net\/cases\/raja-v-austin-gray.php","title":{"rendered":"Raja v Austin Gray (a firm)"},"content":{"rendered":"

Raja v Austin Gray (a firm) [2002] EWCA Civ 1965<\/strong><\/p>\n

ADMINISTRATIVE RECEIVERS \u2013 DUTY OF CARE \u2013 EQUITY OF REDEMPTION \u2013 MORTAGGEES\u2019 POWERS AND DUTIES \u2013 POWER OF SALE – VALUATION<\/strong><\/p>\n

Facts<\/h3>\n

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.<\/p>\n

Issues<\/h3>\n

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<\/p>\n

Decision\/Outcome<\/h3>\n

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<\/em><\/strong> [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.<\/p>\n","protected":false},"excerpt":{"rendered":"

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