Checkprice (UK) Ltd (In Administration) v HM Revenue & Customs

Checkprice (UK) Ltd (In Administration) v HM Revenue & Customs

HMRC were liable for conversion of Checkprice's goods because they detained the goods beyond a reasonable period without exercising the statutory power of seizure, thereby depriving Checkprice of statutory protections. Damages were awarded for the Strongbow cider that should have been returned, and only nominal damages for the remainder, as Checkprice failed to show it would have succeeded in proving duty paid in forfeiture proceedings.

Parties
Claimant: Checkprice (UK) Limited (in administration); Defendants: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
England and Wales
Judgment Date
31 March 2010
Procedural Posture
Judicial Review / Judgment After Full Hearing
Outcome
Claim allowed in part
Legal Topics
Detention and Seizure of Goods, Conversion, Damages, Human Rights Act, Burden of Proof in Forfeiture Proceedings
Customs and Excise Law Tort Law Administrative Law Detention and Seizure of Goods Conversion Damages Human Rights Act Burden of Proof in Forfeiture Proceedings

Case Brief

Summary, issues, holding and outcome

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Parties

Checkprice (UK) Limited (in administration)

Claimant

The Commissioners for Her Majesty’s Revenue & Customs

Defendants

Procedural Posture

Judicial Review / Judgment After Full Hearing

Legal Issues

  1. 1 Whether HMRC unlawfully converted Checkprice's goods by detaining them beyond a reasonable period
  2. 2 Whether Checkprice is entitled to damages for conversion and the measure of such damages
  3. 3 Whether HMRC's delay in investigation was unreasonable

Ratio Decidendi

HMRC were liable for conversion of Checkprice's goods because they detained the goods beyond a reasonable period without exercising the statutory power of seizure, thereby depriving Checkprice of statutory protections. Damages were awarded for the Strongbow cider that should have been returned, and only nominal damages for the remainder, as Checkprice failed to show it would have succeeded in proving duty paid in forfeiture proceedings.

Court Disposition

Claim allowed in part

Orders

  • Checkprice entitled to substantial damages for conversion of Strongbow cider to be assessed by value at time of conversion
  • Checkprice entitled to nominal damages of £500 for the remainder of the goods converted by HMRC