Stevens v Equity Syndicate Management Ltd [2015] EWCA Civ 93 (26 February 2015)

Stevens v Equity Syndicate Management Ltd [2015] EWCA Civ 93 (26 February 2015)

The correct approach to ascertaining the BHR in credit hire claims is an objective one: the judge should identify the lowest reasonable rate quoted by a mainstream supplier for the basic hire of a vehicle of the kind actually hired, in the claimant's locality, to a reasonable person in the claimant's position. The subjective willingness of the claimant to pay is irrelevant. Although the Recorder erred in taking an average, the figure reached was not materially disadvantageous, and the appeal is dismissed.

Citation
[2015] EWCA Civ 93
Parties
Claimant/appellant: Karl Stevens; Defendant/respondent: Equity Syndicate Management Limited
Jurisdiction
England and Wales
Judgment Date
26 February 2015
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal dismissed
Legal Topics
Credit Hire Claims, Damages Assessment, Mitigation of Loss, Basic Hire Rate Calculation
Tort Insurance Law Credit Hire Claims Damages Assessment Mitigation of Loss Basic Hire Rate Calculation

Case Brief

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Parties

Karl Stevens

Claimant/appellant

Equity Syndicate Management Limited

Defendant/respondent

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 How should the basic hire rate (BHR) be ascertained in credit hire claims where the claimant is not impecunious?
  2. 2 Is the correct approach to BHR an objective or subjective one?
  3. 3 What evidence is required to establish the BHR for the vehicle actually hired?

Ratio Decidendi

The correct approach to ascertaining the BHR in credit hire claims is an objective one: the judge should identify the lowest reasonable rate quoted by a mainstream supplier for the basic hire of a vehicle of the kind actually hired, in the claimant's locality, to a reasonable person in the claimant's position. The subjective willingness of the claimant to pay is irrelevant. Although the Recorder erred in taking an average, the figure reached was not materially disadvantageous, and the appeal is dismissed.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.