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Damages – Measure of damages. The issue for determination was the extent to which the credit hire charge incurred by the claimant was recoverable from the defendant insurer. The Court of Appeal, Civil Division, held that a judge faced with a range of hire rates should identify the rate or rates for hire, in the claimant's geographical area, of the type of car actually hired on credit hire terms. The analysis had to strip out the irrecoverable costs. If a single rate, then that rate was likely to be a reasonable approximation for the basic hire rate. If a range of rates, then a reasonable estimate might be obtained by identifying the lowest reasonable rate quoted by a mainstream supplier or a local reputable supplier.
Damages – Measure of damages. The issue for determination was the extent to which the credit hire charge incurred by the claimant was recoverable from the defendant insurer. The Court of Appeal, Civil Division, held that a judge faced with a range of hire rates should identify the rate or rates for hire, in the claimant's geographical area, of the type of car actually hired on credit hire terms. The analysis had to strip out the irrecoverable costs. If a single rate, then that rate was likely to be a reasonable approximation for the basic hire rate. If a range of rates, then a reasonable estimate might be obtained by identifying the lowest reasonable rate quoted by a mainstream supplier or a local reputable supplier.
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