Moore Barlow’s Business dispute resolution team recently acted for Mr D, a consumer who had contracted with North Yorkshire Classic Ltd (“NYC”), a classic car sales company, in respect of the purchase and restoration of two vehicles: a Range Rover Suffix B 1973 and a Range Rover Overfinch 570. The prices of the vehicles were £45,000 and £51,000 respectively and there was an expectation that the vehicles would be restored by NYC and in Mr D’s possession within six to eight months.
Mr D made payments to NYC totalling £81,500 but, nearly four years after entering into the respective contracts, was still yet to receive the vehicles. Mr D made numerous attempts to contact NYC, through its director Anthony Sellick, to chase on the status of the vehicles and find out when they might be delivered, but this was to no avail.
The challenge of a natural power imbalance
The main challenge in this case, as with many matters in which the contract between a business and a consumer contains a natural power imbalance, was getting the business to engage and properly address Mr D’s concerns. It is unfortunate that it took the involvement of a firm of solicitors for NYC to finally agree to uphold their obligations under the contract and provide Mr D with the vehicles that he had paid for.
The mechanics of actually gaining possession of the vehicles also proved challenging, as Mr D lives in the South of England and NYC were situated in Middlesborough. Moore Barlow were therefore required to work closely with a vehicle recovery company to organise transport of the vehicles but also conduct overviews of the conditions they were in to ensure that all relevant parts were recovered.
NYC going into liquidation while the matter was ongoing presented another barrier for Mr D, but a quick change in approach, with assistance from Moore Barlow’s Insolvency and Restructuring team, meant that prompt recovery of the vehicles was possible.
How we solved the problem
Moore Barlow was instructed to draft a formal Letter Before Action putting NYC on notice of an intended claim in breach of contract and/or unjust enrichment and claiming damages plus return of the vehicles.
Moore Barlow were successfully able to elicit a response from NYC, who confirmed that the restoration works on the vehicles were unfinished, but that they could be collected by Mr D.
While discussions were ongoing in respect of collection of the vehicles, an insolvency practitioner was appointed and NYC went into liquidation. Through close co-operation with the liquidator and vehicle recovery companies, and with assistance from Moore Barlow’s Insolvency and Restructuring team, Mr D was finally able to gain possession of the vehicles that he had paid for nearly four years prior.
Was the client happy with the outcome?
Mr D was pleased to recover the vehicles on which he had been waiting for nearly four years. It is a shame that consumers are so often only able to enforce their rights with the assistance of solicitors, but there is a benefit to getting a firm such as Moore Barlow involved at an early stage so that they can consider the position as a whole and determine the most effective course of action.
I am very grateful to the Moore Barlow team for managing the recovery of these vehicles in extremely challenging circumstances and would strongly recommend their engagement at the beginning of any vehicle restoration project to ensure adequate protections are put in place at inception.
Mr D
Key takeaways
Businesses are often aware of the imbalance in bargaining power between themselves and consumers, which can result in the latter being unable to obtain what they are rightly owed. It is important that consumers are aware of their rights under both contractual and statutory law and the remedies available to them to help put them in the position they would be in had the contract been properly performed.
This case also serves as a reminder that the liquidation of a contracting party does not necessarily prevent a successful outcome, provided a proactive approach is taken and prompt discussions had with the liquidator to ensure that assets are dealt with correctly.
Mr D would like other consumers to be aware of his interaction with NYC in the hope that they will not have a similar experience.
How Moore Barlow can help
Moore Barlow’s Business dispute resolution solicitors have a wealth of experience in contractual and consumer disputes and are well-placed to advise you on your legal rights and propose a solution that achieves your aims in the most proportionate and cost-effective manner.
If you require assistance in any such matter, please get in touch with our Business dispute resolution solicitors today.
