Valuations: Under the Hammer with a Top Chartered Surveyor
Simon Quinton Smith is a highly experienced Chartered Surveyor and Expert Witness who is at the top of his game. However, he finds opportunities that he is eminently suited for often go to the larger better known companies who are seen as a better option, but in his experience, Simon has come up against them with his extensive knowledge being considerably greater than his opponents. He speaks with Lawyer Monthly about the ins and outs of chartered surveying and his role as an expert.
What does the Expert Witness role of a Chartered Surveyor involve on a day to day basis?
As I am the most experienced Chartered Surveyor providing property and business advice to the garden centre and horticultural industry throughout the United Kingdom, my involvement on a day-to-day basis is to undertake a variety of work buying, selling, letting and valuing garden centres, farm shops and horticultural properties and businesses throughout the United Kingdom, occasionally into Ireland and Europe. I also undertake rating appeals and provide some general consultancy advice on concessions and other matters.
Our valuations are based on comparable evidence which goes back many years. The majority of Chartered Surveyors undertaking valuations in my sector do not have comparable evidence, which makes their lives difficult and many of my peers regularly telephone to ask for my help and advice. I try to be authoritative and detailed, as well as base my argument on hard evidence from when I have personally been involved in transactions.
Accordingly, day-to-day I am continuing to build my knowledge and experience so that when I am appointed as an Expert Witness, the weight of my argument to the Court will usually be stronger than the surveyor acting for the other side.
What kind of legal cases are you commonly appointed for and what principal issues do these present?
The majority of the legal cases revolve around property values where individuals cannot agree. It can be family matters, divorce or perhaps one company arguing against another – even sometimes the Inland Revenue, again, on values. There have been occasions when I am providing Expert Witness advice on the value of garden centres/garden centre supply businesses or horticultural businesses rather than the value of the assets.
How has this changed from when you began practising in 1986? Do you think the industry has undergone major changes and if so, what were these changes and how did it affect your work?
I think the industry has become more litigious and there is a far greater trend in settling prior to Court. It is now relatively rare that I have to give evidence in Court – sometimes the matters are settled on the steps of the Court as a compromise has become far more important.
What alternative challenges arise in the horticulture industry as opposed to agriculture, or other cultivation management industries? Are these problems often underestimated by those who do not specialise in horticulture?
The challenges in the horticultural industry relate to the large cost of building and fitting out new glasshouses. The different specialisations of the services relative to the crops/plants grown and the rapidly changing and improving innovations.
The problems faced by garden centres relate to the difficulties of being an excellent retailer across multiple disciplines to include being restauranteurs. We had the experience of a company running department stores who decided therefore that they could run a garden centre because of the many different departments, the only great difference being plants, but they sold it relatively quickly because they said they couldn’t even get the same margin out of the garden centre restaurant as they got out of their department store restaurants.
The other major problem facing both industries is seasonality and difficult weather conditions in what are supposed to be good seasons. These problems are regularly underestimated by surveyors not used to the industry.
As a member of the Royal Institute of Chartered Surveyors, what is your secondary remit as an expert witness, after your responsibility to the court?
My secondary remit as a Chartered Surveyor after my responsibility to the Court is to uphold the Rules and Standards of the Royal Institution of Chartered Surveyors.
How complex can the court’s procedure guidelines be in surveying disputes?
So far, I have not found the Court’s procedure guidelines to be complex. Our reports naturally have to contain all the relevant clauses and paragraphs but so long as I am giving my expert opinion which is always backed up by detailed comparable evidence, I don’t seem to have found myself having had any major issues.
What can companies involved in horticulture and aquatic/ pet centres do in order to avoid such disputes?
I think that most companies/individuals involved in garden centres, aquatics, pet centres, farm shops, etc. generally try and avoid disputes. They are time consuming and costly. Unfortunately, many disputes happen after divorce – often employing a joint expert such as myself to mediate between the parties can save considerable lawyers’ fees and court fees.
Is there any legislative change you believe could facilitate the work of chartered surveyors?
I think Chartered Surveyors are very capable of working within our legislative – my only concern is that the sector is getting quite litigious against experts.
