Case study: John Grimes Partnership Limited v Gubbins

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The English Court of Appeal’s recent decision in John Grimes Partnership Limited v Gubbins [2013] EWCA Civ 37 has confirmed that, in certain circumstances, a third party involved in a property development transaction can be held liable for damages suffered by a property developer due to a fall in market values that occurred during a period of delay. However, this certainly does not mean that valuers will therefore be found liable for a similar fall in market values.

Mr Gubbins engaged John Grimes Partnership Ltd (JGP), a consulting and engineering company, to design and complete a road and drainage system on land acquired by Mr Gubbins for residential development purposes. JGP was to complete this work by March 2007.

In breach of the expressly agreed period, the work remained incomplete at the end of March 2007. In fact, more than a year later, the work was still not complete…

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