Anexo upbeat on Supreme Court contractual liability decision

The AIM-traded firm said the case in question, Armstead v RSA, centred on the issue of whether a victim of a non-fault traffic accident could seek recovery from the negligent driver's insurance company for any contractual liabilities owed to a hire company.

Specifically, the case focussed on hire charges forfeited by the hire company during the vehicle's repair process.

However, the implications of the ruling extended far beyond that particular scenario, encompassing any instance where a claimant endeavoured to recover contractual liabilities to a third party.

Previously, in both the original hearing and subsequent appeals, the courts ruled against the recoverability of such liabilities.

However, the Supreme Court's recent judgement overturned those decisions, asserting that the reasoning and conclusions drawn by the lower courts were flawed.

The firm said the ruling established a crucial precedent, affirming that claimants could indeed recover any liabilities stemming from an accident that may be owed to a third party.

To be deemed reasonable, liabilities needed to be reasonably foreseeable, including a pre-estimate of loss to the hire company.

Of broader significance, the Supreme Court's judgement assigned the burden of proof in such cases to the defendant.

Similar to other defences aimed at reducing a claimant's recoverable losses, such as intervening cause, failure to mitigate, contributory negligence, or scope of duty, it was now firmly established that the defendant bore the responsibility of proving that any loss was too remote to warrant recovery.

“We are very pleased to announce this Supreme Court decision,” said chairman Alan Sellers.

“It establishes that our clients, as claimants, can recover other liabilities to third parties which are caused by the at fault defendant; and further rules that the burden of proof lies with the defendant.

“The success of this appeal to the highest court in the land marks a major milestone in the history of credit hire litigation and the ruling will reinforce our ability to represent the interests of our clients in all aspects of their claims.”

At 1421 GMT, shares in Anexo Group were down 0.98% at 60.4p.

Reporting by Josh White for Sharecast.com.