Are You Handling Credit Hire Claims In Northern Ireland Effectively?

Credit hire in England and Wales continues to evolve at a swift pace and there is much talk in the legal press and amongst credit hire practitioners of the cost of credit hire, tactics deployed and judicial appetite. Little is said however about credit hire outside of England and Wales.

From the 1st July, we are delighted to confirm we now have a DAC Beachcroft credit hire team in Northern Ireland, as we are taking on the insurance team of McKinty & Wright.

As a team, we have worked with McKinty & Wright for three years in order to share best practice and strategy.

In this article, Partner Aisling Mellon from our Belfast office explains (1) how credit hire differs and (2) what recent developments may impact strategies deployed in this jurisdiction.

Setting the scene

To challenge Northern Ireland (NI) credit hire claims, it is crucial to understand the NI Court system, procedures and pre-action protocols which differ greatly from those in England and Wales. This will significantly influence your strategy and tactics.

How does Northern Ireland differ?

Credit hire organisations (CHOs)

There are fewer CHO's operating in NI, with two or three enjoying the majority of the credit hire market.

Impecuniosity

Generally, NI looks to the same case law as England and Wales for a legal definition. The burden of establishing impecuniosity is on the Plaintiff (i.e. the Claimant). However, the aforementioned procedures and protocols can play a huge part in obtaining the relevant documentation.

Rate

Courts in NI are particular in the type of evidence they will allow. Some Judges have been receptive to the argument that McBride v UK Insurance Ltd. [2017] EWCA Civ 144 encourages a 'broad brush stroke' approach which permits them to take rates and make adjustments as they see fit.

Mitigation – Intervention

NI Courts are increasingly receptive to the argument that the Plaintiff cannot ignore an offer made by the Defendant's insurer to provide a replacement vehicle. It should however be borne in mind that the letter must meet certain criteria and provide sufficient information to a Plaintiff to enable them to decide which option they should take.

Fraud

Credit hire fraud does of course take many forms, the most extreme example being the phantom CHO/AMC. As NI is a relatively small jurisdiction, this is not a feature in the same way as it in England and Wales.

The NI judiciary treats fraud somewhat differently particularly where one element of the claim is tainted...