What is the SAAMCo cap?
What is the SAAMCo cap?
12. The idea of the SAAMCo cap was born: ie that a lender, having demonstrated he had suffered loss as a result of the transaction , could recover damages limited to or “capped at” the amount of the overvaluation (effectively placing the lender in the position he would have been in had the advice been sound). 13.
What is the SAAMCo principle?
The SAAMCo principle determined that a claimant must establish not merely that the loss for which damages were claimed were caused by the professional’s breach of duty in the “but for” sense, but also that that loss fell within the scope of the duty owed by the professional defendant.
What does SAAMCo stand for?
The SAAMCO principle was developed by the Court in the 1997 case of South Australia Asset Management Corporation v York Montague Ltd [1].
What was the basis of the Saamco cap?
The SAAMCO principle has been the subject of criticism, both in terms of its operation and its basis (whether it should be considered in terms of the scope of duty, causation or remoteness of damages).
Who is not legally responsible for a Saamco loan?
In a decision which has further clarified and reinforced the “SAAMCO test” the Supreme Court has held that a negligent solicitors’ firm who prepared documentation for a loan was not legally responsible for the client’s decision to lend.
What was the Supreme Court decision In Saamco?
In a significant decision concerning the liability of professional advisors, the Supreme Court has clarified that negligent advisers who provide clients with information in connection with a particular transaction will only be liable for the financial consequences of that information being wrong, not the entire losses stemming from the transaction.
Which is the first stage of the Saamco principle?
In that case, Lord Hoffman reiterated the two stages in the SAAMCo principle. First, ascertaining the loss which would have been avoided had there been no wrongful act. Second, awarding damages for the proportion of the loss which fell within the scope of the defendant’s duty.
