Tort Law
The Contaminated Site
Facts
Question
Analysis
Verdict
Scenario
InvestCo is considering purchasing a former industrial site. It commissions SurveyPro, an environmental consultancy, to carry out a Phase 1 environmental survey. SurveyPro's report states the site is 'suitable for residential development with no identified contamination risks.' Relying on this report, InvestCo purchases the site for £2.1m. During development, extensive contamination is discovered which SurveyPro's survey failed to identify due to negligent methodology. Remediation costs £800,000. InvestCo's development plans collapse. InvestCo sues SurveyPro for: (1) the £800,000 remediation costs; and (2) £1.5m lost profits from the failed development.