Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Anexo upbeat on Supreme Court contractual liability decision

(Sharecast News) - Integrated credit hire and legal services provider Anexo announced a significant victory in the Supreme Court on Friday, marking a pivotal moment in the recovery of contractual liabilities within the realm of non-fault traffic accidents. 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

Share this article

Related Sharecast Articles

Frontier IP appoints new finance chief
(Sharecast News) - Intellectual property commercialisation specialist Frontier IP announced the appointment of Jo Stent as its new chief financial officer on Friday, effective from 22 April.
Directa Plus asphalt technology laid at Imola Circuit
(Sharecast News) - Graphene nanoplatelet specialist Directa Plus announced on Friday that 'GiPave', an asphalt solution incorporating graphene and recycled plastics, was being installed at the Imola Circuit ahead of the Emilia-Romagna Grand Prix in May.
Huddled Group buys Food Circle for £0.3m
(Sharecast News) - E-commerce investor Huddled Group announced the acquisition of online retailer Food Circle Supermarket on Friday, for total consideration of up to £0.3m.
Bens Creek shares fall as it moves mine into care and maintenance
(Sharecast News) - Shares in North American metallurgical coal miner Bens Creek were sliding on Friday afternoon, after the company issued an update on its operations and working capital position, confirming that its West Virginia mine was moving into care and maintenance.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.