PROFESSIONAL NEGLIGENCE PROBLEMS

Abstract

In a rapidly changing and increasingly demanding business environment, valuers and other professionals have constantly to reassess their roles and work methods. Areas of liability in both contract and tort have been increased, with the duties in each becoming more onerous. With two cases of alleged professional negligence (concerning valuation and auction work) pending in court and with an increasingly active consumer movement, this period represents an opportune time for the valuation profession to review the law relating to professional negligence, their own standards (and professionalism) and possible areas of protection. Professional negligence law in other jurisdictions (within the Commonwealth) and locally is reviewed in this work with comments on their applicability. It is suggested that professional indemnity insurance could be one area of protection, not from legal action, but as a financial assurance, if there is to be a claim of damages. With currently fewer than 500 (although still growing), licensed appraisers practising locally and a sound financial structure, this type of insurance seems necessary.