CA-2025-001477 - [2025] EWCA Civ 1360

The Wilsons’ Schedule of Loss

I acknowledge at the outset that the Schedule of Loss was drafted personally by the Wilsons, and not by counsel. Even though Mr Wilson is a solicitor, the court cannot expect him to produce the same sort of document that a barrister would. That said, I consider that it must have been apparent to Mr Wilson that his Schedule of Loss was over-complicated, unclear, and lacking in even the basic information necessary to identify and support the disputed heads of loss.

There is a lengthy preamble, under the heading ‘Introduction’, and ‘The 1^st, 2^nd and 3rd Claimants and their investment in the Flats’. As part of the narrative in these sections, paragraph 6 notes that, in November 2024, the Wilsons gifted the two flats to their two daughters. No consequences, let alone any loss, are alleged in the Schedule to arise from that event.

Paragraphs 12-19 of the Schedule of Loss are concerned with ‘Capital values’. This contains general information about residential property values in the Cardiff Bay area. In paragraph 16, it is averred that the Wilson’s flats became un-mortgageable by early 2016; paragraph 17 avers that the discovery of the 2019 defects had a further negative impact on sale prices; and paragraph 18 asserts that the defects found in 2024 “can only have a further negative impact”. The section refers to the Wilsons’ expert valuer, but nothing is provided from him/her; instead it is said that their “evidence will be updated and served in accordance with the order for directions”. Paragraphs 20 and 21 are concerned with rental values. This identifies the actual rents for the two flats on two dates only: July/October 2014 (the time of the purchases) and November 2024. Paragraph 21 refers to the consistent growth in rental values in Cardiff.

Paragraph 22 of the Schedule of Loss is concerned with ‘Tax impacts’. This suggests that the sale of these flats at an earlier date would have enabled the Wilsons “to gift the proceeds to their children to buy a home”. It also suggests that “gifts at an earlier point would have lessened the risk that those gifts would be subject to IHT (Inheritance Tax)”.

There are then a lengthy series of definitions. Amongst those relevant to Disputed Head 1 (by far the biggest single head of loss) are the following:

“23.

‘2016 Capital Losses’ means the difference between the 2016 Defective Market Value the 2016 Clear Market Value.

24.

‘2016 Clear Market Value’ means the estimated market value of the Flats on the 2016 Loss Date on the assumption the Flats did not have the 2016 Defects (or other defects) and on the basis the Flats were suitable security for secured lending.

25.

‘2016 Defects’ means defects identified by [surveyor] and/or referred to in Parkman’s information packs as provided to prospective sellers/purchasers from [date] 2016.

26.

‘2016 Defective Market Value’ means the net market value of the Flats on the 2016 Loss Date with the 2016 Defects on the assumption that the Flats were not suitable security for secured lending and after deduction of exceptional sale costs including the extra costs incurred at auction sales.

27.

‘2016 loss date’ means the date from which the Managing Agents of Celestia, William Parkman and Daughters Limited started to issue information packs referring to the 2016 Defects -[March] 2016.

28.

‘2019 Capital Losses’ means losses additional to the 2016 Losses, being the difference between the 2019 Clear Market Value and the 2019 Defective Market Value.

29.

‘2019 Clear Market Value’ means the assumed value of the Flats on the 2019 Loss Date on the assumption that they were not suitable security for secured lending and suffered from the 2016 Defects only.

30.

‘2019 Defects’ means all fire defects referred to in Enforcement Notices issued by SWFRS in 2019.

31.

‘2019 Defective Market Value’ means the net market value of the Flats on the 2019 Loss Date with the 2016 Defects and the 2019 Defects on the assumption that they were not suitable security for secured lending and after deduction of exceptional sale costs including the extra costs incurred at auction sales.

32.

‘2019 loss date’ means the Date on which compartmentation and other fire defects were identified at Celestia.

33.

‘2024 Capital Losses’ means losses additional to the 2016 Losses and the 2019 Losses, being the difference between the 2024 Clear Market Value and the 2024 Defective Market Value.

34.

‘2024 Clear Market Value’ means the assumed value of the Flats on the 2024 Loss Date on the assumption that they were not suitable security for secured lending and suffered from the 2016 Defects and 2019 Defects only.

35.

‘2024 Defects’ means the defects in the soil pipe system as referred to in paragraph xx of the AAAPOC.

36.

‘2024 Defective Market Value’ means the net market value of the Flats on the 2024 Loss Date with the 2016 Defects, the 2019 Defects, and the 2024 Defects on the assumption that they were not suitable security for secured lending and after deduction of exceptional sale costs including the extra costs incurred at auction sales.

37.

‘2024 loss date’ means [date] being the date of intrusive investigations into the soil stacks in Celestia revealing systemic defects as referred to in paragraph xx of the AAAPOC.”

After further definitions, the Schedule of Loss has a heading ‘Losses Claimed’. That is in the following form:

“51.

By reason of the Defects and the discovery of each of the Defects at different times, the Wilsons have suffered or may suffer Losses in respect of each of the Flats estimated as set out in the following table:

Loss Claimed	339 Vega House	354 Vega House
Total Capital Losses	£118,000	£199,000
Investment Loss	£51,400	£87,000
Re-investment Loss	£29,700	£50,300
Service Charge Loss	£8,989.11	£14,032.05
Total	£208,089.11	£350,062.05
Rental Income Loss	To be confirmed following service of expert evidence.
Secured Borrowing Loss	Based on raising a 50% mortgage, and re-investing the capital in further property with a 50% mortgage, the Wilsons would have increased their capital gain by 100%.
Interest Loss	Interest as referred to in Paragraph 26 of the Re-Re-Re-Amended Particulars of Claim.
Indemnity	Following the decision in Coastal Housing Group Ltd v Mitchell & Anor (2024) EWHC 2831 (Ch), there is a real risk that tenants (Contract Holders) who have rented the Flats from the Wilsons will be entitled to reclaim rent paid at least since 1 December 2022, when the Renting Homes (Wales) Act 2016 came into force as a result of the Flats being unfit for habitation
Taxation/IHT	CGT liability - TBC Cost of IHT insurance premium

None of the figures for the first four heads of loss in the table are broken down or explained in any way. They are just bald figures. The last five heads of loss do not identify any claim figure at all.