LEGAL ALERT ON PROFESSIONAL AND CONTRIBUTORY NEGLIGENCE...WHO BARES THE BURDEN?

At the end of last month on the 30th of June 2021, High court commercial Judge, Justice WANGUTSI DAVID in the case of KCB Bank Uganda Ltd Vs Sendagire Joseph and Anor Civil suit No.640 of 2013 ruled that a land valuer/surveyor will be required to jointly pay back a loan that a bank disburses to a borrower on the basis of their misleading, false and inaccurate valuation report.

The facts briefly were,

The plaintiff advanced a loan of UGX. 300,000,000 to the 1st Defendant mainly to buy off the 1st Defendant's outstanding loan with FICNA Bank, provide working capital and purchase a heavy duty truck from Japan, this loan payable within 48 months...

The defendant defaulted on the loan payment and the property was meant to be valued for purposes of foreclosure,

During the valuation Period The Bank realized that the initial valuer/Surveyor valued a different property as opposed to the one he was instructed to. thus making the Bank to sue the defendant and the Valuer for breach of contract, recovery of the loan, damages and interest arising out of the valuers professional negligence.

On the negligence of the valuer/surveyor employed, the learned Justice held that

"where a person delegates a task or duty to another, it employ another not a servant, to do something for his benefit of himself or other, whether the person be called agent or independent contractor, the employer will be liable for the negligence of the other person on the performance of the task, duty to act as the case may be"

thus the surveyor/valuer and the defendant were ordered to jointly pay back the loan on grounds that the actions of the valuer amounted professional negligence.

#legal#professionalnegligence#professionalindemnity To view full case follow the link below https://www.linkedin.com/feed/update/urn:li:activity:6825368941917962240

By Waboga David.