Overview
Breuer v Leccacorvi is controversial because it deals with a practical question that often arises after damage: should compensation be based on repair cost or diminution in value?
For many surveyors, the answer should usually focus on the cost of making good. This case is therefore approached with caution.
What happened
The court considered the proper measure of compensation or expenses of making good under the Party Wall etc. Act 1996.
The decision
The judgment treated diminution in value as the appropriate measure in the circumstances.
That means looking at the reduction in value of the property rather than simply the estimated repair cost.
Why surveyors argue about it
Many party wall surveyors see this as difficult because party wall practice usually approaches physical damage through repair, reinstatement or payment in lieu of repair.
Section 11(8) refers to payment in lieu of making good, which naturally points many practitioners toward a properly evidenced repair cost.
How to use the case
Treat it carefully. It is often cited, but it should not be used as a simple answer to every damage claim.
The right approach may depend on the nature of the damage, the evidence, whether repairs are reasonable, and whether the claimed cost is proportionate.