Coles & Ors v Hetherton & Ors

Coles & Ors v Hetherton & Ors

The reasonable cost of repair is the correct measure of loss for negligently damaged vehicles, and this is to be assessed by reference to what a person in the position of the claimant could obtain on the open market, not by reference to the insurer's arrangements or bargaining power. Insurance arrangements are irrelevant to the assessment of damages, and the actual cost of repair is only evidence of loss, not a cap. Mitigation does not apply to the assessment of direct loss in this context.

Parties
Claimant: Adrianne Coles; Claimant: Natalie Woodhead; Claimant: Kim Crowther; Defendant: Rosemary Hetherton; Defendant: Mahala Guy; Defendant: Oliver Thomas
Jurisdiction
England and Wales
Judgment Date
15 June 2012
Procedural Posture
Civil (insurance/subrogated Claims) / Preliminary Issues Determination
Outcome
Preliminary issues determined in favour of claimants; claimants succeeded on issues 1 and 2; issue 3 reserved for further hearing.
Legal Topics
Measure of Damages, Subrogation, Mitigation of Loss, Diminution in Value, Reasonable Cost of Repair
Tort Insurance Law Measure of Damages Subrogation Mitigation of Loss Diminution in Value Reasonable Cost of Repair

Case Brief

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Parties

Adrianne Coles

Claimant

Natalie Woodhead

Claimant

Kim Crowther

Claimant

Rosemary Hetherton

Defendant

Mahala Guy

Defendant

Oliver Thomas

Defendant

Procedural Posture

Civil (insurance/subrogated Claims) / Preliminary Issues Determination

Legal Issues

  1. 1 What is the correct measure of loss for negligently damaged vehicles?
  2. 2 Is the reasonable repair charge to be judged by reference to the claimant or the insurer's position?
  3. 3 Is the amount paid by the insurer for repairs recoverable if it does not exceed the reasonable cost of repair?

Ratio Decidendi

The reasonable cost of repair is the correct measure of loss for negligently damaged vehicles, and this is to be assessed by reference to what a person in the position of the claimant could obtain on the open market, not by reference to the insurer's arrangements or bargaining power. Insurance arrangements are irrelevant to the assessment of damages, and the actual cost of repair is only evidence of loss, not a cap. Mitigation does not apply to the assessment of direct loss in this context.

Court Disposition

Preliminary issues determined in favour of claimants; claimants succeeded on issues 1 and 2; issue 3 reserved for further hearing.