Case Study: Recovery of Vehicle Repair and Hire Costs

Background

We acted for a client who was involved in a road traffic accident whereby the third party was responsible for causing damage to the client’s vehicle. The losses consisted of the cost of repairing the vehicle and the hire of a replacement vehicle during the repair period.

Steps Taken

A Letter of Claim was issued to the responsible party, supported by invoices and hire documentation, requesting confirmation of liability position and or settlement within the prescribed period.

No response was received. Accordingly, court proceedings were drafted and upon instruction from the client then sent to the Court for issue to protect the client’s position.

The Defendant filed a Defence, accepting liability for the accident occurring but disputing causation, on the basis that the repair and hire charges claimed were excessive.

Progression of the Claim

We prepared a detailed reply with a rebuttal to each of the Defendant’s arguments with reference to the supporting evidence.

A Part 36 offer was then made on behalf of the client, giving the Defendant 21 days (known as the relevant period) to accept or face the adverse costs consequences of refusal.

Outcome

The Defendant accepted the Part 36 offer within the relevant period. The client recovered an appropriate settlement of both damages and legal costs without the need for the matter proceeding to a final hearing, thereby bringing the matter to a swift conclusion, and avoiding further litigation costs and court fees.

Key Takeaway

The case highlights the importance of:

• Issuing prompt proceedings where pre-action correspondence is ignored,

• Preparing evidence to rebut speculative defences, and

• Making a Part 36 offer early to tactically encourage settlement and protect the client’s costs position.