Gladstone Lazarus Pty Ltd v Tumur [2018] NSWLC 6

Gladstone Lazarus Pty Ltd v Tumur [2018] NSWLC 6

On the face of the credit hire contract Gladstone had a legal obligation to pay at least part of the hire charges, so an actual and temporal loss was established. However, Gladstone could recover only the reasonable cost of hiring a vehicle needed for the loss of use period. Mr Phillips could perform the required business tasks in a Mercedes Benz C class, so the Porsche Macan costs were not recoverable. The Right2Drive credit hire rates included non-compensable benefits and did not prove the market rate. The applicable recoverable amount was calculated using Europcar's 30-day Mercedes rate, with reasonable additional charges, totalling $5,769.94.

Jurisdiction
Australia
Judgment Date
12 June 2018
Procedural Posture
Civil Claim for Hire Costs of Replacement Vehicles After Motor Vehicle Collision / Principal Judgment
Outcome
Judgment for the plaintiff; recoverable hire costs assessed at $5,769.94, with submissions on interest and costs to be heard.
Legal Topics
['credit Hire Agreement' 'replacement Vehicle Hire Costs' 'loss of Use' 'actual and Temporal Loss' 'reasonable Market Rate' 'mitigation and Reasonableness of Expenditure']
['consumer Credit' 'damages' 'motor Vehicle Collision'] ['credit Hire Agreement' 'replacement Vehicle Hire Costs' 'loss of Use' 'actual and Temporal Loss' 'reasonable Market Rate' 'mitigation and Reasonableness of Expenditure']

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Procedural Posture

Civil Claim for Hire Costs of Replacement Vehicles After Motor Vehicle Collision / Principal Judgment

Legal Issues

  1. 1 ['Has an actual and temporal loss in fact occurred?' 'What type of replacement vehicle should Gladstone have used?' 'Was the rate charged by Right2Drive Pty Ltd reflective of the market rate or excessive because it included non-compensable benefits?' "Were other charges such as excess reduction reasonable to meet Gladstone's needs during the loss of use period?"]

Ratio Decidendi

On the face of the credit hire contract Gladstone had a legal obligation to pay at least part of the hire charges, so an actual and temporal loss was established. However, Gladstone could recover only the reasonable cost of hiring a vehicle needed for the loss of use period. Mr Phillips could perform the required business tasks in a Mercedes Benz C class, so the Porsche Macan costs were not recoverable. The Right2Drive credit hire rates included non-compensable benefits and did not prove the market rate. The applicable recoverable amount was calculated using Europcar's 30-day Mercedes rate, with reasonable additional charges, totalling $5,769.94.

Court Disposition

Judgment for the plaintiff; recoverable hire costs assessed at $5,769.94, with submissions on interest and costs to be heard.

Orders

  • ['Judgement for the plaintiff' 'I will hear submissions on interest and costs.']