Armstead (Appellant) v Royal & Sun Alliance Insurance Company Ltd (Respondent)
Case ID: 2022/0100
Case summary
Issue
Can the terms of a contract signed between the hirer of a motor car and the hire car company be relied upon to calculate the damages claimed by the hirer against the insurance company of a negligent driver who collided with the hire car?
Facts
Lorna Armstead ('LA') hired a motor car from Hephire Ltd ('Helphire'). She signed a hire agreement confirming (a) she would pay Helphire for any loss or damage to the vehicle and (b) she would pay Helphire a daily rate for loss of use of the vehicle should the vehicle be unavailable to Helphire if returned damaged.
On 23 November 2015, LA was involved in a road accident caused by the negligent driving of a third party. The third party was insured by Royal & Sun Alliance Insurance Company Ltd ('RSA'). The hired vehicle required repairs costing £1,990.65. Two years' later, on 14 May 2018, LA received a demand from Helphire requesting payment of a lump sum for loss of use of the vehicle while it was being repaired. LA brought a claim against RSA for both sums.
Judgment appealed
Parties
Appellant(s)
Lorna Armstead
Respondent(s)
Royal & Sun Alliance Insurance Co Ltd
Appeal
Justices
Lord Briggs, Lord Hamblen, Lord Leggatt, Lord Stephens, Lord Richards
Hearing start date
23 November 2023
Hearing finish date
23 November 2023