Jenny wished to purchase a house at a price of RM400,000. To partly finance the purchase of the house, she applied to CC Bank (Bank) for a loan of RM300,000. The Bank informed Jenny that it would grant her a loan on condition that it received a satisfactory valuation report from a registered real estate valuer. The Bank appointed Zico, a registered real estate valuer, who was in the Banks panel of property valuers, to provide a valuation of the house. The valuation fee was paid by Jenny to the Bank and Zico was aware of this.

Zico conducted the valuation negligently. He gave the Bank a report stating that the house was worth RM400,000 and that no essential repairs are required. A copy of the report was supplied to Jenny by the Bank. Based on the valuation report the Bank approved Jennys loan application.

In reliance on the report, Jenny entered into a contract to purchase the house for RM400,000. But the house was worth far less. Zico had not excluded his liability or disclaimed responsibility in his report. Jenny has now discovered that the house had major defects which was not mentioned in Zicos report. The kitchen which was located at the back of the house subsequently collapsed and she suffered massive financial losses.

Advise Jenny whether she would succeed in recovering her losses from Zico under the tort of negligence.