Coles & Ors v Hetherton & Ors

Coles & Ors v Hetherton & Ors

The correct measure of loss for vehicle damage is the reasonable cost of repair to the claimant, not limited by the insurer's arrangements or actual costs. The reasonableness is judged by what the claimant could obtain on the open market. Administrative and sundry charges are recoverable if the overall cost is reasonable. The cost of a courtesy car, provided as a contractual benefit under the policy, is also recoverable as general damages for loss of use.

Parties
Appellants: Coles & Others; Respondents: Hetherton & Others
Jurisdiction
England and Wales
Judgment Date
20 December 2013
Procedural Posture
Civil Appeal / Appeal From Queen's Bench Division, Commercial Court, on Preliminary Issues and Strike Out/summary Judgment Applications
Outcome
Appeal dismissed
Legal Topics
Measure of Damages, Subrogation, Motor Insurance, Negligence, Loss Assessment
Tort Law Insurance Law Measure of Damages Subrogation Motor Insurance Negligence Loss Assessment

Case Brief

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Parties

Coles & Others

Appellants

Hetherton & Others

Respondents

Procedural Posture

Civil Appeal / Appeal From Queen's Bench Division, Commercial Court, on Preliminary Issues and Strike Out/summary Judgment Applications

Legal Issues

  1. 1 What is the correct measure of loss for vehicle damage caused by negligence when repairs are undertaken?
  2. 2 Should the reasonableness of repair charges be judged by reference to the claimant's position or the insurer's position?
  3. 3 Are administrative, sundry service, and courtesy car charges recoverable as part of damages?

Ratio Decidendi

The correct measure of loss for vehicle damage is the reasonable cost of repair to the claimant, not limited by the insurer's arrangements or actual costs. The reasonableness is judged by what the claimant could obtain on the open market. Administrative and sundry charges are recoverable if the overall cost is reasonable. The cost of a courtesy car, provided as a contractual benefit under the policy, is also recoverable as general damages for loss of use.

Court Disposition

Appeal dismissed

Orders

  • Appeal on all three preliminary issues dismissed
  • Appeal on strike out/summary judgment applications dismissed