B hires replacement vehicle at £32.90 a day following collision caused by A. A’s insurers offer a replacement vehicle at no charge. Legal advice sought by B not received until the following year. A’s insurers dispute B’s claim to hire costs.
Claim takes three years to reach court. Judge awards B the cost of hire car for only seven days as a result of her failure to mitigate.
B‘s appeal upheld. B found to have acted reasonably in refusing A’s insurers free replacement vehicle offer. It was not B’s fault that her legal advice was received after her car had been repaired. The legal fees payable by A’s insurers total £29,500.
With specialist CFJ assessor matter resolved quickly through mediation at fee to insurer of £2,250. B accepts a reduced offer of 75%. The total costs saved by insurer are £27,250 (92%) with reduced settlement cost.