Beechwood Birmingham Ltd v Hoyer Group UK Ltd

Beechwood Birmingham Ltd v Hoyer Group UK Ltd

Where a corporate claimant has the capacity to supply a substitute vehicle from its own stock, damages for loss of use should be based on the cost of capital and depreciation for the period of deprivation, not the spot hire rate. The award of damages based on the spot hire rate was incorrect as the claimant failed to mitigate its loss by using its own resources.

Parties
Appellant: Beechwood Birmingham Ltd; Respondent: Hoyer Group UK Ltd
Jurisdiction
England and Wales
Judgment Date
10 June 2010
Procedural Posture
Civil Appeal / Appeal Judgment
Outcome
Appeal allowed
Legal Topics
Loss of Use, Mitigation of Damages, Assessment of Damages, Corporate Claimants, Credit Hire
Tort Damages Loss of Use Mitigation of Damages Assessment of Damages Corporate Claimants Credit Hire

Case Brief

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Parties

Beechwood Birmingham Ltd

Appellant

Hoyer Group UK Ltd

Respondent

Procedural Posture

Civil Appeal / Appeal Judgment

Legal Issues

  1. 1 What is the proper measure of damages for loss of use of a vehicle by a corporate claimant when a substitute vehicle is available from its own stock?
  2. 2 Is it correct to award damages based on the spot hire rate when the claimant did not need to hire a replacement vehicle?
  3. 3 What is the effect of mitigation where a claimant has the capacity to supply a substitute vehicle internally?

Ratio Decidendi

Where a corporate claimant has the capacity to supply a substitute vehicle from its own stock, damages for loss of use should be based on the cost of capital and depreciation for the period of deprivation, not the spot hire rate. The award of damages based on the spot hire rate was incorrect as the claimant failed to mitigate its loss by using its own resources.

Court Disposition

Appeal allowed

Orders

  • Award of general damages in the sum of £12,000 set aside
  • Parties to agree a suitable figure for loss of use or return for further argument if not agreed