Summary of Recent Cases – Substantive Law


Costs Incurred By Claimant’s Motor Insurer In Administering Claim And In Utilising Intermediary Company To Facilitate Repairs To Motor Vehicle Not Recoverable From The Defendant

Fallows v. Harkers Transport, Romford CC, 02/09/11

HHJ Platt rejected the subrogated claim of the claimant’s motor insurers for damages from the defendant for the costs of administering a claim in respect of the repairs to the claimant’s motor vehicle and in respect of the costs of employing an intermediary company to facilitate those repairs by way of contracts directly with approved repair centres. The intermediary company was found to be a subsidiary company of the claimant’s motor insurer. In essence, the repair work was carried out by the approved repair centre, the intermediary company paid it and then invoiced the claimant’s motor insurer for a higher figure based on an increased hourly rate for labour, a sum entitled ‘sundry allowances’ and the cost of collecting and returning the vehicle. HHJ Platt found on the evidence that the claimant had failed to prove that the additional charges were caused by the defendant’s negligence rather than the insurance company’s own commercial decision to employ an intermediary. Moreover, HHJ Platt found that there public policy considerations which militated against the recovery of such additional costs, namely that such recovery would result in increased costs and premiums across the industry. Accordingly, the claimant’s recovery of damages was limited to the costs levied by the repairing garage.

October 19, 2011 В· Editorial Team В· Comments Closed
Posted in: Cases