Asda ordered to pay taxi driver £23,000 after car written off in crash in Perth and Kinross

Asda have been ordered to pay a taxi driver £23,000 after his car was written off in a crash.

The driver, who is licensed by Perth and Kinross Council, was involved in a crash with an Asda vehicle on February 4, 2024.

Asda accepted liability for the damage caused to his taxi.

Perth Sheriff Court heard that repairs were initially estimated to take around two weeks and cost £3,146.

However, delays meant the driver, who said he relied on regular school and social care transport contracts, as well as other taxi work, did not get his own vehicle back until July 15 – more than five months after the crash.

During this time, he hired a replacement taxi for 162 days, which overall cost £31,792.

The sheriff found that much of the delay was attributable to Asda, whose claims handler had been informed that the driver needed a replacement taxi to fulfil his contracts.

The court also accepted that the driver “couldn’t afford to not work” while his vehicle was being repaired, with limited savings, significant debts and regular household and business expenses.

Sheriff Alison McKay ruled that hiring the replacement taxi on credit was reasonable and that the driver had taken reasonable steps to limit his losses.

“The pursuer could not afford not to work,” she stated in her ruling. “At no time during the period of credit hire did the pursuer’s financial situation improve to any significant degree.

“Much of the delay in this case appears to be attributable to the defender, who led no evidence to dispute the chronology…and gave no explanation regarding why it took so long for repairs to the pursuer’s vehicle to be authorised, notwithstanding that they had been put on notice that the pursuer had entered into credit hire in order to protect his business contracts.”

However, the court found that not all of the hire period could be justified.

Although the repairs had been authorised in May, more than two months passed before the vehicle was ready, and the driver had not provided sufficient evidence to explain that delay.

The sheriff therefore limited the period for which Asda was liable for the replacement vehicle to 117 days, rather than the full 162 days claimed.

The court ordered Asda to pay £23,000, including delivery charges and VAT. A separate hearing will be arranged to deal with the legal expenses of the case.