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Post by stankroenke1 on May 8, 2020 21:07:35 GMT
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Post by overthehill on May 9, 2020 10:01:25 GMT
I'll go first. Care to provide a summary of the ruling and its relevence to Fundingsecure or one of its loans? Thanks.
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Post by stankroenke1 on May 9, 2020 11:45:13 GMT
”UKAF, with Georgina Squire of Rosling King acting for them, had obtained judgments for negligent over-valuations against the insolvent valuer whose insurer, Markel, avoided its professional indemnity insurance policies, leaving the valuer with no cover and UKAF with no means of recovery”
Negligence over- valuations, is that not what has happened to many FS loans. Sorry if the link is if no relevances to FS loans. Say the word and I’ll delete it or admin can.
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shimself
Member of DD Central
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Post by shimself on May 9, 2020 11:47:36 GMT
I think the crux was that the bad valuations were done innocently. In which case....
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on May 9, 2020 12:25:55 GMT
I think the crux was that the bad valuations were done innocently. In which case.... Hmmmmmm, definitely NO Comment!
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on May 9, 2020 12:44:15 GMT
I think the crux was that the bad valuations were done innocently. In which case.... Nothing to do with the valuations themselves AIUI where a liability had already been ajudged and the PI claim awarded. It relates to disclosure of information in relation to who the valuations were for, ie sub-prime and whether this allowed the insurer to avoid the claim. I think the court ruled that the non-disclosures were not deliberate and therefore the claim could not be avoided. That said I haven't read the full judgement in detail. The possibly relevant bit is the Braganza test - which relates to application of discretion powers in a contract by one party where it affects the rights of both parties. It relates to the decision making process itself rather than just the decision. Discretion to change terms & conditions would presumably be one area.
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Post by overthehill on May 9, 2020 15:11:49 GMT
”UKAF, with Georgina Squire of Rosling King acting for them, had obtained judgments for negligent over-valuations against the insolvent valuer whose insurer, Markel, avoided its professional indemnity insurance policies, leaving the valuer with no cover and UKAF with no means of recovery” Negligence over- valuations, is that not what has happened to many FS loans. Sorry if the link is if no relevances to FS loans. Say the word and I’ll delete it or admin can. thanks. I'm sure innocent negligence or incompetence could be attributed to some of the FS bad loans but most are/were patently more serious than that. The other issue is FS investors need to rely on the administrators for this type of claim (unlikely) or specialist recovery companies. If i'm understanding it right, this case doesn't apply to loans originated by what I call the financial bermuda triangle where there is collusion between solicitor, valuer and borrower. I seriously hope these situations are rare but companies like FS are a magnet.
Sounds like good news for p2p investors in general.
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taffy
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Post by taffy on May 10, 2020 8:55:47 GMT
These Companies can not stay in administration forever. Until it`s all over, there is no way of knowing what the total losses will be and who can be held accountable. There are already "No win No fee" lawyers interested in seeing what the outcomes are though. Valuers with indemnity insurance, personal guarantees given, blatant fraud. It will be interesting but we`ll see.
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