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Sobrany v UAB Transtira: Subrogated Credit Hire Considered by the Court of Appeal - Gary Herring, Horwich Farrelly

12/02/16. Described by the COA in its judgment as “another chapter in the long running saga of disputes between insurers about liability to indemnify claimants in respect of the cost of hiring replacement vehicles”, the case featured a claim in the sum of £142,751 incurred under two separate credit hire agreements between Mr Sobrany and Accident Exchange Limited.

As is often the case in respect of agreements of the larger credit hire organisations (CHOs), the claimant was indemnified against the hire charges by way of a policy of insurance (on this occasion with AmTrust). The policy had been taken out at the time the hire agreements were entered.

It was expressly pleaded by the claimant that he had made a claim under that policy prior to proceedings being commenced. Accordingly the claimant’s liability to Accident Exchange was alleged to have been discharged by the AmTrust policy, and the claim for hire was therefore a subrogated claim...

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