Vehicle stolen, then crushed by council/NSL...!
Vehicle stolen, then crushed by council/NSL...!
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S11Steve

Original Poster:

6,389 posts

214 months

Friday 15th June 2018
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Today I was informed that one of my 65 plate Ford Fiestas has been crushed, back in March.

It was on a long term lease to a fleet supplier, who then sub-hired it to a corporate user who insured it themselves.
It transpires it was stolen from the corporate user around November 2017, and reported to Hertfordshire police (where the corproare user was based)
The vehicle was then uplifted by NSL on behalf of Haringey council around Christmas 2017 after a some residents complained it was abandoned in the street, windows smashed, every panel battered.

It sat in a compound for 90 days before it was scrapped. The first we knew about this was when the tax refund arrived from the DVLA.

Haringey have no record of correspondence with the registered keeper, nor the police - even though it was marked on the PNC and HPI as stolen, but still it has been crushed.
To further complicate matters, the hirer it was stolen from has gone into liquidation (not related to this incident, but their insurance is not paying out)

I understand it was picked up under Section 99 of the RTA, but what I can't find are any regulations or guidelines to te'l the authority what to do when they pick a vehicle up, and ask them to cover the losses due to their non-compliance.

Any idea where I should start on this?!
I'd prefer to work with my customer on this one as I know it is not their fault, but our supply contract does allow us to pursue them for all losses as a last option.


( A bit of googling suggests this is not the first time Haringey have done this - https://www.standard.co.uk/news/london/man-demands... )


Edited by S11Steve on Friday 15th June 16:57

rallycross

13,754 posts

267 months

Friday 15th June 2018
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Wow that’s shocking I hope You get it sorted.

Red Devil

13,516 posts

238 months

Saturday 16th June 2018
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S11Steve said:
Haringey have no record of correspondence with the registered keeper, nor the police - even though it was marked on the PNC and HPI as stolen, but still it has been crushed.
To further complicate matters, the hirer it was stolen from has gone into liquidation (not related to this incident, but their insurance is not paying out)

I understand it was picked up under Section 99 of the RTA, but what I can't find are any regulations or guidelines to te'l the authority what to do when they pick a vehicle up, and ask them to cover the losses due to their non-compliance.
It cannot possibly be under RTA Section 99. That relates to D/Ls - https://www.legislation.gov.uk/ukpga/1988/52/secti...

S11Steve said:
Any idea where I should start on this?!
I'd prefer to work with my customer on this one as I know it is not their fault, but our supply contract does allow us to pursue them for all losses as a last option.
You may find this helpful - http://www.britishparking.co.uk/write/Documents/Li...
It would appear that Haringey may have signally failed in their responsibilities by their lack of communicate with both the RK and the police.

S11Steve said:
( A bit of googling suggests this is not the first time Haringey have done this - https://www.standard.co.uk/news/london/man-demands... )
This LA is known for being a virulently anti-car. They are not alone in shooting from the hip.
Longer term PHers will remember this - https://www.standard.co.uk/news/crushed-by-the-cou...

I suspect Haringey will try to frustrate you at every turn and that you will end up having to seek recourse in the courts.
And/or complain to the Local Government Ombusdsman - https://www.lgo.org.uk/make-a-complaint/what-we-ca...

Bobberoo99

45,532 posts

128 months

Saturday 16th June 2018
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Jesus wept, that is seriously screwed up!!!! I hate to be the finger pointer here but at the end of the day surely whoever you leased/hired the car to is responsible for it? If you continue to sort it out for them then they'll just sit back and let you, you leased the vehicle to them, it then became their responsibility for it's whereabouts, security ETC.

Tomo1971

1,177 posts

187 months

Saturday 16th June 2018
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Bobberoo99 said:
Jesus wept, that is seriously screwed up!!!! I hate to be the finger pointer here but at the end of the day surely whoever you leased/hired the car to is responsible for it? If you continue to sort it out for them then they'll just sit back and let you, you leased the vehicle to them, it then became their responsibility for it's whereabouts, security ETC.
As above surely it is their (the leasee) responsibility and not yours - you apply pressure to them and let them have the headache dealing with the LA, why should you?



Sheepshanks

41,079 posts

149 months

Saturday 16th June 2018
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S11Steve said:
To further complicate matters, the hirer it was stolen from has gone into liquidation (not related to this incident, but their insurance is not paying out)
If cover was in place when it was stolen then surely they'd still be liable? Although now the story has come out I guess they won't pay.

I'd have thought you'd have to follow the chain - so you have to go after the people you leased to. Although it's complicated by your company being the owner (did you won it outright?) and the RK


TooMany2cvs

29,008 posts

156 months

Saturday 16th June 2018
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Sheepshanks said:
S11Steve said:
To further complicate matters, the hirer it was stolen from has gone into liquidation (not related to this incident, but their insurance is not paying out)
If cover was in place when it was stolen then surely they'd still be liable? Although now the story has come out I guess they won't pay.
Yup. If it was covered, then this is all part of the theft claim - it was nicked, it was never recovered to the insurer for repair and return to the policyholder. If the insurer want to go after the council or their contractor, that's a separate question.

But I suspect "insurance is not paying out" is the key to all of this... With the hirer having gone into liquidation, Steve's just another unsecured creditor.

Sheepshanks

41,079 posts

149 months

Saturday 16th June 2018
quotequote all
TooMany2cvs said:
... With the hirer having gone into liquidation, Steve's just another unsecured creditor.
He's not - the fleet supplier is. They take the end customer risk as they decided to deal with them.

He doesn't seem to have any contract relationship with the end customer. How much this all is complicated by him owning the vehicle and not getting notifications etc, I have no idea.


I'm thinking about this from a common sense POV - commercial law may be very different.



TooMany2cvs

29,008 posts

156 months

Saturday 16th June 2018
quotequote all
Sheepshanks said:
He's not - the fleet supplier is. They take the end customer risk as they decided to deal with them.
Ah, sorry. That doesn't explain the insurance problem, though, but it does mean the same thing - the only people Steve can shout at have gone tits, and he's an unsecured creditor of theirs.

Red Devil

13,516 posts

238 months

Saturday 16th June 2018
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TooMany2cvs said:
But I suspect "insurance is not paying out" is the key to all of this... With the hirer having gone into liquidation, Steve's just another unsecured creditor.
Not necessarily. The fleet company, which is 'pig-in-the-middle,' will be a creditor of the failed business.
Steve is one step removed so it depends on the terms of the lease agreement with the fleet company.
It could end up as a pragmatic commercial decision not to pursue the latter.
Maintaining good business relations can sometimes be worth more than ££ on a balance sheet.


S11Steve

Original Poster:

6,389 posts

214 months

Saturday 16th June 2018
quotequote all
Red Devil said:
TooMany2cvs said:
But I suspect "insurance is not paying out" is the key to all of this... With the hirer having gone into liquidation, Steve's just another unsecured creditor.
Not necessarily. The fleet company, which is 'pig-in-the-middle,' will be a creditor of the failed business.
Steve is one step removed so it depends on the terms of the lease agreement with the fleet company.
It could end up as a pragmatic commercial decision not to pursue the latter.
Maintaining good business relations can sometimes be worth more than ££ on a balance sheet.
Correct, our customer is still trading, but their customer went bump. We could hold our customer liable on the terms of the supply contact, but that would be a last resort for us, I'd prefer to work together with them against the council.

The insurance is an issue, it looks like it was covered for the first month, but the policy was cancelled. I'm still trying to get to the bottom of that though.

I had only assumed it was a section 99 seizure, but either way, I could do with learning what the prices should have been to approach the council with.

Red Devil

13,516 posts

238 months

Monday 18th June 2018
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S11Steve said:
I had only assumed it was a section 99 seizure, but either way, I could do with learning what the prices should have been to approach the council with.
I'm a bit slow this week. rolleyes
The Section 99 you refer to is RTRA 1984, rather than RTA 1988.
https://sites.google.com/site/ronbarkercrimlaw/pol...

f the LA acted on the residents' complaint then it wiil have done so by virtue of:
http://www.legislation.gov.uk/ukpga/1978/3/section...
and/or Section 5 of:
https://www.legislation.gov.uk/uksi/1986/183/pdfs/...

Prices? Did you mean to say process? (I guess you know what the vehicle was worth). smile
The1986 Regs above and the the flowchart I linked to earlier detail the steps the LA should have taken.
From what you said earlier, it doesn't look like it.

If you have supporting evidence of these failures then challenge the LA to prove otherwise.

The Surveyor

7,624 posts

267 months

Monday 18th June 2018
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Steve, what are you trying to claim and off who?

The Fiesta was stolen, smashed-up and dumped, even if the council had contacted you as 'owner' you would only be better off by being in possession of a worthless smashed-up stolen-recovered Fiesta. The value of that Fiesta disappearing due to the theft and the lack of insurance, not the actions (or lack of) by the Council or those who crushed it.

S11Steve

Original Poster:

6,389 posts

214 months

Monday 18th June 2018
quotequote all
The Surveyor said:
Steve, what are you trying to claim and off who?

The Fiesta was stolen, smashed-up and dumped, even if the council had contacted you as 'owner' you would only be better off by being in possession of a worthless smashed-up stolen-recovered Fiesta. The value of that Fiesta disappearing due to the theft and the lack of insurance, not the actions (or lack of) by the Council or those who crushed it.
We do get a few vehicles smashed up like this, usually we dispose of them as unrecorded losses at a salvage auction, then bill our customer for the shortfall against CAP Clean.
There are loads of reasons why insurance wont pay out, or why fleet users wont claim on insurance - if a fleet policy excess is £5k,or more, and the shortfall on a smashed up vehicle is £4k, they'll always take the cheaper option. The end users insurance failing to cover is a common reason though - we bill our customer, they will then bill their customer, if they can, or if the end user is still trading,

Body shops love these type of vehicles though - they are not registered as Cat C/D (or whatever it is now), and it gives them something to fix up during quiet periods to sell on a profit. Nearly new, low mileage, and none of the restrictions on OEM panels etc imposed by insurance companies when rebuilding them.

Ideally we, as owner/RK want to claim for the losses against the council - if they had informed us, we would have collected it from the pound and sent to CoPart or CD Salvage. But we have nothing at all to mitigate the losses. We could claim back against our customer, but that is a last resort - they've been with us for 15+ years, so I'd much rather work with them than get legal on them.

The council however appear to have failed the result of which has cost us about £9k

I'll go through the links posted tomorrow though - thank you!