TRM Copy Centres (UK) Ltd & Ors v Lanwall Services Ltd

TRM Copy Centres (UK) Ltd & Ors v Lanwall Services Ltd

The Location Agreement was not a consumer hire agreement under section 15 of the Consumer Credit Act 1974 because, although it involved a bailment, it was not by way of hire. The Retailer was not obliged to make payments for possession or use of the copier unless it was used, and was instead paid commission for providing space and accounting for monies collected. The commercial reality was a joint arrangement for placing copiers in shops, not a hire of goods by the Retailer.

Parties
Claimant: TRM Copy Centres (UK) Limited & Ors; Defendant: Lanwall Services Limited
Jurisdiction
England and Wales
Judgment Date
17 April 2008
Procedural Posture
Civil Appeal / Appeal From Preliminary Issue Determination
Outcome
Appeal dismissed; decision of Flaux J affirmed
Legal Topics
Bailment, Consumer Hire Agreements, Interpretation of Statutes, Inducement of Breach of Contract
Contract Law Consumer Protection Bailment Consumer Hire Agreements Interpretation of Statutes Inducement of Breach of Contract

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Parties

TRM Copy Centres (UK) Limited & Ors

Claimant

Lanwall Services Limited

Defendant

Procedural Posture

Civil Appeal / Appeal From Preliminary Issue Determination

Legal Issues

  1. 1 Whether the Location Agreements between TRM and Retailers are 'consumer hire agreements' under section 15 of the Consumer Credit Act 1974

Ratio Decidendi

The Location Agreement was not a consumer hire agreement under section 15 of the Consumer Credit Act 1974 because, although it involved a bailment, it was not by way of hire. The Retailer was not obliged to make payments for possession or use of the copier unless it was used, and was instead paid commission for providing space and accounting for monies collected. The commercial reality was a joint arrangement for placing copiers in shops, not a hire of goods by the Retailer.

Court Disposition

Appeal dismissed; decision of Flaux J affirmed