‘In cases where the hirer of a car on credit terms is not impecunious, we thought we knew where we stood after Dimond v Lovell [2001] 1AC 384. The Claimant was entitled to recover the ‘spot rate’ or, as the Court of Appeal in Pattni v First Leicester Buses Ltd [2012] RTR 17 insisted, ‘basic hire rate’ or BHR. In Burdis v Livsey [2003] QB 36, three possible ways of calculating the basic hire rate were considered and indeed that consideration was repeated by Aikens LJ in Pattni. Both the Court of Appeal in Burdis and the Court of Appeal in Pattni rejected the mode of calculation of applying a reasonable discount to the credit hire rate charged. That left two methods of calculation. The first, which was not favoured by the Court of Appeal in Burdis, was to break down the charge made by the credit hire company and remove the additional elements from the claim in respect of credit, claim handling and delivery &c. The Court of Appeal in Burdis thought that the cost of working all that out might well be disproportionate. The court in Pattni, however, considered that where the actual credit hire company which had hired the replacement car to the Claimant, disclosed the BHR for that type of car in that area at that time, that might well be the best mode of calculation.’
Zenith PI Blog, 20th May 2015
Source: www.zenithpi.wordpress.com
