Lloyd's Law Reporter
COLES AND OTHERS V HETHERTON AND OTHERS
[2013] EWCA Civ 1704, Court of Appeal, Lord Justice Moore-Bick, Lord Justice Aikens and Lord Justice Vos, 20 December 2013
Insurance (motor) - Damaged vehicle - Measure of damages - Subrogation - Significance of insurer??A?A?s conduct in arranging repairs
RSAI issued motor policies covering both
first and third party losses. In the event of damage to an insured vehicle
which could be repaired for less than the market value of the vehicle, the
policy provided that the assured could choose a repairer or elect to use RSAI
system. Under that system RSAI would engage MRNM, a member of the RSA Group, to
undertake repairs. Those repairs would be effected at one of MRNM's six
regional repair centres (QRCs) or contracted out to independent garages. MRNM
and repairers in its Priority Repair Network (PRN repairers) were required to
maintain minimum service standards, including a delivery and collection service
and a courtesy car. The amounts charged by MRNM allowed it to make a profit
over and above the charges paid by it to PRN repairers. The defendants'
insurers contended the arrangements increased costs and amounted to a failure
to mitigate loss.