CAR GIANT v LBHF MArch 2017:

​BUILDING BLOCKS FOR DIMINUTION

The recent case provides good guidance for Building Surveyors on building a diminution case, with Landlord and Valuer techniques expressed as well.  

British and Irish Legal Information Institute, has recently published the case summary:

Case No: HT-2013-000071: 

The Judge Mr Stephen Furst QC covered topics such as:

1. Diminution valuation
2. Valuation Techniques
3. Costs
4. Burden of evidence
5. Statutory interest recovery

The Judge found that the level of diminution was accurately reflected within the cost of the works undertaken by the Landlord. Landlords should be aware that Judges will take into account Landlords “actions and inactions” after the valuation date to inform their decision on the damage to the reversion, which ultimately reflects the loss. 

The Building Surveyors agreed the breach, remedy and cost, with the Judge stating "in this case the parties have agreed the state of disrepair and the costs of remedying that disrepair. It is this cost which is the basic building block in the diminution calculation", 

The judgement provides a good indication also as to the Judges views on costs and the extent to which Landlords when looking to recover these from the Tenant, need to consider the actions that they take, in the works they might carry out to the Premises, along with those which they do not take, or the works they decide might not be necessary to effectively market the Premises and the effect this might have on their claim.