This week the RICS voted to establish a service to help protect members from personal liability cases brought many years after the alleged negligence happened.
The move, made during the triannual RICS world governing council this week, follows a Court of Appeal ruling in Merrett v Babb 2001.
Following the insolvency of his employer, John Babb, an RICS member, found himself personally liable for a mortgage valuation that he had carried out seven years previously.
The Court of Appeal upheld the judgment and in July 2001 the House of Lords refused leave to appeal, which left Babb with damages and costs of £45,000 to pay.
The RICS Members’ Support Service provides employees with access to free information on: minimising personal liability; payment (in whole or part and at the RICS service’s discretion) of claims and legal representation where professional indemnity insurance is not available; and advice on liability issues.
CMS Cameron McKenna is working with RICS’s insurance adviser IMS to advise on creating the service.
l RICS representatives from around the world also warned that a lack of confidence in US markets would lead to “shrinking” profits across the globe.
David Call
