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Replacement vehicle, liability.

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Post subject: Replacement vehicle, liability.

Posted: Fri Jan 13, 2006 2:51 pm

Joined: Thu Nov 04, 2004 5:53 pm
Posts: 10381

Clynes v Bundy
(CC (Manchester)) County Court (Manchester)
8 June 2001

[2001] C.L.Y. 1510

Summary

Subject: Damages

Consumer hire agreements; Mitigation; Taxis

consumer hire agreements; taxis; hire of replacement plated vehicle; mitigation of loss

Abstract: C, a taxi driver, sought to recover the cost of hire of a plated taxi for a period of six months following a road traffic accident for which B was found liable. B disputed the charges of GBP 18,744, contending that (1) the hire agreement between C and the hire company did not reflect the true position between the parties as C would never in fact be required to pay for the hire of the taxi; (2) that C had a responsibility to B to minimise the costs and he had failed to mitigate his loss, and (3) the daily hire rate of approximately GBP 100 per day was excessive.

Summary: Held, granting judgment for C, that C was entitled to recover the hire charges in full. On the facts, the provisions of the hire agreement had been brought to C's attention and C genuinely believed that he was responsible for payment of the hire charges. In the circumstances, C had taken all reasonable steps to mitigate his loss; he believed that his credit rating was not sufficiently strong to allow him to finance the purchase of a new taxi by way of a bank loan, he had no credit card and only a modest overdraft facility, and would have been out of work if he had been unable to hire a replacement plated taxi.

Whilst C had a responsibility to B, it was also the case that B's insurers could have protected themselves by making an interim payment at an earlier stage of the proceedings. Further, the daily hire rate was not excessive and should not be discounted as there was only one firm in the area from whom C could have hired a suitable replacement vehicle.

Judge: Deputy District Judge Brown

Counsel: For C: Julian Orr. For B: R Pearson

Solicitor: For C: John [edited by admin] & Associates (Ormskirk). For B: Weightmans

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Sussex

Post subject: Re: Replacement vehicle, liability.

Posted: Fri Jan 13, 2006 6:31 pm

Joined: Wed Sep 03, 2003 7:30 pm
Posts: 57331
Location: 1066 Country

JD wrote:

Whilst C had a responsibility to B, it was also the case that B's insurers could have protected themselves by making an interim payment at an earlier stage of the proceedings. Further, the daily hire rate was not excessive and should not be discounted as there was only one firm in the area from whom C could have hired a suitable replacement vehicle. [/b]

From memory this case had millions resting on it. :shock:

But thankfully the driver won, and now when any of us are in a no-fault accident, then a fully licensed vehicle should be made available for us to carry on working. =D>

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