Claims casebook: credit hire

Local authorities continue to face numerous claims for the recovery of credit hire charges. Recently, Langleys had a case that resulted in significant savings being made, despite liability having been admitted, because of the claimant’s solicitors failing to comply with court directions.

In the first case, the claimant sought to recover credit hire charges totalling £16,774.66. The claimant pleaded impecuniosity, saying he did not have the financial means with which to pay for the car hire. A spot hire rate report was obtained and an offer was made to settle in the sum of £9,000. The claimant’s solicitors failed to comply with the court directions, however, and no witness evidence was served to substantiate the claimant’s case.

Consequently, we made an application on behalf of the local authority to strike out the claim at trial when there was no attendance by the claimant or the claimant’s solicitors.

In support of the application, a chronology was lodged before the court detailing the chasing letters, telephone calls and emails to the claimant’s solicitors, notifying them of the dates for exchange of witness evidence and outlining the date of the trial.

The court struck out the claimant’s claim and the local authority’s costs were recovered in full. Despite the claimant’s solicitors’ earlier conduct, they subsequently issued an application to reinstate the claimant’s claim on the basis that the trial date had been missed due to the volume of work the claimant’s solicitors had recently received. But the application failed, with the court finding that the claimant’s solicitors had failed to provide any good reason as to why they had not attended the trial.

While credit hire continues to be a challenging area, it seems that courts will impose costs sanctions in cases where there is unreasonable conduct by the claimant’s representatives. Providing a detailed chronology outlining the unreasonable conduct assists defendants in pursuing costs.

Caroline Elson is a solicitor in the public sector unit at Langleys.