October 2011 News Articles
Surveyors must pay £18m after giving negligent advice
A firm of surveyors must pay £18m in compensation after giving negligent advice to clients involved in a major property deal.
The surveyors were hired by a consortium of developers to assess the commercial prospects of a factory outlet shopping centre. The centre was in a listed building on two floors.
The developers acquired the lease on the centre for £62.85m based on the valuation produced by the surveyors. However, the centre was not a commercial success.
The developers took legal action alleging that the surveyors had been negligent in overstating the commercial rents that could be achieved, and failing to prepare an accurate assessment of the centre’s ability to attract consumer spending.
The High Court held that the surveyors owed a duty to the developers to exercise a reasonable standard of care and skill in producing the required assessments and valuations.
They failed to fulfil that duty because they did not have the experience or expertise to provide satisfactory professional advice and should not have taken on the project. The surveyors had failed to carry out proper and due diligence, and had failed to adequately consider the impact of competing centres.
As a result of the inaccurate valuations, the developers had paid £18m more than the centre was worth and so were entitled to reclaim that amount from the surveyors.
Please contact us if you would like more information about professional negligence issues.
Buy to let landlords acquiring more properties
The renewed interest in buy to let properties is spreading from London to other areas throughout the UK, according to new research.
The Association of Residential Letting Agents (ARLA) and the Residential Landlords Association (RLA) conducted a survey of their members.
The results showed that 30% of buy to let landlords in the North East had increased their portfolios in the last 12 months. The figure was 26% for both the Midlands and Greater London.
The research also showed that landlords in the North have the largest portfolios with an average of 13 properties, compared with an average of six in Central London and the South East.
The Operations Manager at ARLA, Ian Potter, said: "Traditionally London has led the way with buy-to-let, but we are seeing signs that investors elsewhere in the country believe now is the time to buy - if you can arrange finance, it could be prudent to take advantage of lower property prices.
"Some towns across the UK are suitable for rental investment as they have a high number of students, while others - such as the recently unveiled Local Enterprise Zones - are areas being targeted for future growth.”
Please contact us if you would like more information about commercial property or landlord and tenant issues.
Bankruptcy petition threshold could rise to £3,000
Debtors may soon have to owe £3,000 or more before creditors can petition for bankruptcy. The current level is £750.
The proposal to raise the threshold has been put forward by the Business Minister Edward Davey as part of the Government’s review of debt advice and personal insolvency.
It follows a public consultation and call for evidence carried out earlier this year.
The petition debt level threshold has remained at £750 since the Insolvency Act came into force in 1986. The Government believes it is disproportionate to threaten someone with bankruptcy for such a small amount.
It’s now running a consultation on increasing the threshold, with £3,000 being the likely new figure.
The Government has also proposed that the Money Advice Service should perform a central role in the co-ordination of debt advice. It also wants to develop a protocol setting out what to expect from a Debt Management Plan.
There’s to be a consultation on how to make it easier for bankrupts to have access to a basic bank account, and ministers want to see a strengthening of voluntary codes of forbearance where debtors need a breathing space to seek debt advice or recover from sudden income loss.
Mr Davey said: "While it is clear that stakeholders have strong concerns about some aspects of the personal insolvency framework, no strong case has been made for a radical shake-up. However, I am convinced that there is more that can be done to improve the delivery of debt advice to the most vulnerable and intend that Money Advice Service take up this work.
"I want to see creditors, debtors and particularly providers working together to improve standards in debt management, so that debtors are directed only to those operating the very best service, leaving no place for the rogue providers who are only in it to make money for themselves."
Please contact us about the issues raised in this article or any matter relating to credit control and debt collection.
Changes to regulations covering agency workers take effect
The changes to the regulations covering agency workers have now come into effect.
It means that agency workers who fulfil the same role with a firm for 12 continuous weeks are entitled to the same basic employment conditions as employees.
The regulations apply even if the person only works for a few hours each week.
From the first day in a temporary role, agency workers must be given access to any collective on-site facilities which are available to comparable employees. These facilities include staff canteens, childcare, parking and transport. Temporary workers must also be given access to information on relevant job vacancies with the business.
Once the 12-week period is complete, the employer must also give more entitlements including salary, overtime pay, shift allowances, bonuses, lunch vouchers and annual leave.
These rights are in addition to those which temporary and agency workers already enjoy under the Working Time Regulations 1998.
However, special rules apply where a temporary worker has a permanent contract of employment with a temporary work agency and is available to work during a lull in positions.
The new rules took effect on 1st October and are not retrospective. If an agency worker was in place before that date, the qualifying period will still only begin on 1st October.
Please contact us if you would like more information.
Woman awarded nearly £290,000 in sexual harassment case
A telesales worker has been awarded nearly £290,000 compensation after being subjected to sexual harassment and bullying by her manager.
Petrina Taylor started working for BT in its marketing department selling internet products in 2008. She told an employment tribunal that in the following year, she was subjected to verbal and suggestive sexual abuse from her manager, Craig Alcock.
Ms Taylor complained to the company about Mr Alcock’s behaviour and he was asked to apologise. However, the abuse continued and Mr Alcock told her she would be axed unless she met her sales targets.
When the bullying became too much for her, she resigned and brought a claim of constructive dismissal. She said the abuse she received had made her depressed and she felt unable to return to similar work in a high pressure sales environment.
The employment tribunal found in her favour and criticised Mr Alcock’s behaviour. The chairman of the tribunal, David Burton, said: “His management style was one of bullying, using offensive, obscene, homophobic and racist language.”
Judge Burton also criticised BT’s handling of the case. “If those problems had been properly addressed by BT at that time the conduct would not have continued and this claim would never have been brought. Consideration should have been given to making arrangements so that Miss Taylor was no longer managed by him or the subject of his malign influence.”
Ms Taylor was awarded a total of £289,877 in compensation. This was to cover injury to her feelings and future loss of earnings.
Please contact us if you would like more information about the issues raised in this article or any aspect of employment law.
Housing market sluggish but some signs of improvement
The housing market remains sluggish with prices falling by 2.6% in the year to August, according to the latest figures released by the Land Registry.
The monthly rate of change from July to August saw a price decrease of 0.3%. The cost of the average house in England and Wales is now £162,347.
The only area where prices increased over the last 12 months was London, which saw an increase of 2.1%.
The figures, from the Land Registry’s House Price Index, show that the number of completed house sales fell by 13% over the year.
The reason for the fall is partly due to the difficulty many people have experienced when trying to get a mortgage, particularly in cases where lenders require large deposits.
However, there are signs that lenders are making more mortgages available at more affordable prices. Figures released by the Bank of England show that the number of mortgages approved for home purchases rose to 48,421 in June. That was an increase of 2,571 compared with the average number for the previous six months.
Many commentators believe the worst may be over in the housing market and expect to see more activity in the coming months, particularly if lenders continue to make more attractive mortgage deals available.
If you have been holding off from buying a property then this might be a good time to think about entering the market. Please contact us if you would like more information about buying or selling a property, including advice on mortgages and finance.
Protect your future with Lasting Powers of Attorney
Better health care means that people are now living longer and more active lives.
However, the increased life expectancy has brought with it an increase in the number of dementia cases. The Alzheimer’s Society says that one million people in the UK could be affected by some form of dementia by 2021.
It is impossible to predict our future health but we can take steps now to protect our interests if we suffer from dementia or lose our mental capacity for any other reason in the future.
Lasting Powers of Attorney (LPAs) enable you to nominate someone such as a family member or trusted associate to make decisions on your behalf if you ever lose the ability to do so yourself.
The property and finance LPA allows you to appoint someone to look after your financial affairs, and the personal welfare LPA lets you grant an attorney authority over such matters as health care and the kind of treatment you receive.
LPAs should be drawn up with the help of a solicitor to ensure that they accurately express your wishes and protect your interests.
Please contact us if you would like more information about Lasting Powers of Attorney.
How cohabiting couples can get ‘marriage-like’ legal protection
Cohabiting couples are being urged to take action to ensure they have the same kind of legal protection as married couples.
The call comes from the Law Society following a Government decision not to give cohabitants the same legal rights as spouses.
The issue is important because many cohabiting couples don’t realise they may have few legal rights if their relationship breaks down. Women may find themselves without a home and without any maintenance payments; men may find it difficult to retain contact with their children.
Even if the relationship remains stable, cohabitants may find they have no automatic right to inherit their partner’s estate, which could end up passing to family members.
The Law Society is advising unmarried couples to see a solicitor about drafting a cohabitation agreement. This would state how the couple want their assets to be divided in the event of a break-up.
Hopefully, the couple’s relationship will continue but if it doesn’t, it will be helpful to have difficult issues resolved in advance rather than have to discuss them when emotions may be running high.
A properly drawn-up agreement may even be more secure than some rights associated with marriage.
Law Society president John Wotton said: “Unlike pre-nuptial agreements for married couples, cohabitation agreements are recognised by the courts in England & Wales as being legally binding. It is not yet established that pre-nuptial agreements for married couples are binding in the courts.
“In light of the Government’s decision not to give live-in couples the same rights as married couples, there is perhaps a greater need for cohabiting couples to make these agreements.”
The Society is also urging cohabitants to make a will and ensure that it is kept up to date. This will ensure their estate is passed on exactly according to their wishes rather than in ways laid down by law.
Please contact us if you would like more information about cohabitation agreements, wills and probate or any of the issues raised in this article.