A Credit Hire Claim Without Loss of Use
In credit hire litigation, we often see defences that focus heavily on the cost of replacement vehicles, hire rates and impecuniosity.
However, before any of those issues arise, there is a much more fundamental question: Did the claimant actually lose the use of their vehicle as a result of the accident in question?
A recent case handled by Chris Dibb, Technical Lead in our Credit Hire Defence Team, demonstrates why that question should never be overlooked. The claimant was involved in two separate road traffic accidents on consecutive days and made a credit hire claim against our client as a result of the second accident on the basis that his vehicle had been rendered unroadworthy.
At first glance, the claim appeared relatively straightforward. The claimant asserted that the second collision had deprived him of the use of his vehicle and that the ensuing hire period represented a recoverable loss. His case was that the damage sustained in the first incident was only minor and superficial.
The reality, however, was rather different. We obtained the engineer’s report prepared in relation to the first accident which stated that the vehicle was in fact rendered unroadworthy as a result. The claimant sought to argue that although there were two reports from the separate incidents, they had been prepared at the same time which is why the vehicle was recorded as unroadworthy. However, the claimant did not provide any further evidence in support of that assertion or by way of clarification.
Credit hire damages are intended to compensate a claimant for the loss of use of their vehicle. Where a claimant has already been deprived of that use for reasons unrelated to the accident in dispute, establishing causation becomes extremely difficult.
In this case, the court accepted that the claimant's vehicle was already unroadworthy as a result of the first accident. The claimant therefore could not demonstrate that the second accident caused any additional loss of use. Without loss of use, there was no foundation for a claim for credit hire.
As a result the claim for credit hire was dismissed.
This case highlights the importance of investigating the wider factual background; previous accidents, pre-existing damage and vehicle condition can all have a significant impact on causation and recoverability.
Credit hire claims are frequently argued around rates, duration and impecuniosity. Whilst those issues remain important, cases such as this serve as a reminder that the most effective defence is sometimes the simplest one.
