STEVENS V EQUITY SYNDICATE MANAGEMENT LTD

[2015] EWCA Civ 93, Court of Appeal, Civil Division, Lord Justice Jackson, Lord Justice Kitchin and Lord Justice Floyd, 26 February 2015

Insurance (motor) - Innocent accident claimant hiring replacement vehicle on credit hire terms - Basis for recovering damages in respect of vehicle hire costs - Basic hire element

In this test case, the Court of Appeal discussed how the basic hire element of the total charge incurred under a motor vehicle credit hire agreement was to be ascertained. The claimant, S, was an innocent party to a traffic accident wherein his Audi was damaged. In order not to jeopardise his no claims discount with his insurers, he obtained a replacement Audi from a credit hire company whilst his own vehicle was being repaired. The credit hire company also arranged for the repairs and funded them pending recovery from the defendant, who was the insurer of the driver at fault. S paid hire at £140 per day and a few extra charges to reduce his excess and liability for accidental damage, so that the total rate was £165.50. The Recorder and the judge at first instance awarded a daily rate of £63.02. The question of the appropriate method of calculating the basic hire element, and therefore what could be recovered from the insurer of the driver at fault, came before the Court of Appeal.