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Flannery and Another v Halifax Estate Agencies Limited (18 February 1999) Court of Appeal

United Kingdom
16/08/1999
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Flannery and another bought a flat for which Halifax Estate Agencies Ltd carried out the valuation. The valuation report stated that at the time of inspection there were no undue hazards in relation to "heave, landslip or settlement". Flannery subsequently put the flat on the market and received an offer. Once again, Halifax Estate Agencies Ltd carried out the survey of the property but this time with a different surveyor. The report stated that the property was affected by structural movement. As a result, the purchaser withdrew and Flannery and another sued Halifax Estate Agencies Ltd for professional negligence relating to the original valuation. The trial judge ruled in favour of Halifax Estate Agencies Ltd, explaining that he preferred its expert evidence to that of Flannery. However, he did not outline the reasons for his choice. Flannery appealed on the ground that the judge had failed to give reasons for his decision. On appeal the court held that there was a clear general duty on a professional judge to give reasons. Such duty was part of due process, and therefore justice. In order to maintain fairness, parties should be clear as to why they had won or lost. Whether the matter involved a straightforward factual dispute or a more complex intellectual exchange, the rule remained the same: the judge was under an obligation to explain why he had reached his decision. The court upheld Flannery's appeal and a new trial was ordered.

(Independent Law Reports, 26 February 1999)

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