How is loss measured? – Professional Negligence Overview Part V

27 May, 2016
by: Cripps Pemberton Greenish

 

Calculating what has been lost in monetary terms as a result of professional negligence can be a complex issue.

However, the general principle is that the client should be put into the position they would have been in had the professional not been negligent.

For example, if a surveyor overvalues a property so that their client pays too much for it, a likely starting point for calculating the client’s loss is the difference between the price paid as a result of the negligent advice and the lower true market value.

 

Money lost

How do you work out how much you have lost?

 

Mitigation

A client bringing a claim has a duty to mitigate their loss. They cannot recover money for losses which could have been avoided by taking reasonable steps. A client will not recover all of their losses where their actions have made the problem worse.

 

Contributory negligence

If both the professional and their client are in some way to blame, the losses the client can recover will be reduced to the extent that they were partly at fault. This is something which a professional might try to raise if a claim for professional negligence is brought against them.

 

For more information, see Cripps Pemberton Greenish’s brief guide to professional negligence claims or contact one of our team.