A judgment creditor can be ordered to pay damages for losses suffered by the debtor as a result of breaches by an enforcement agent when taking control of goods.
Summary
The Court of Appeal ordered that the judgment creditor pay damages to the debtor after the enforcement agent breached Schedule 12 of the Tribunals, Courts and Enforcement Act 2007.
Background
Burton was fined £308 by the Magistrates’ Court for a speeding offence. The Ministry of Justice (MoJ) instructed Marston to act on its behalf. Marston engaged a self-employed enforcement agent.
The enforcement agent attended Burton’s property and clamped a vehicle despite Burton explaining that it was subject to a hire purchase agreement. Burton showed the agent a letter from the finance company as evidence that he had no beneficial interest in the vehicle.
County Court proceedings
Burton brought proceedings against the MoJ in the County Court under para 66, Schedule 12 of the Tribunals, Courts and Enforcement Act 2007.
He asked the court to order that the clamp be removed and award him damages under paragraph 66(5) of Schedule 12.
The MoJ argued that it could only be ordered to pay damages if it had caused or contributed to the loss that Burton had suffered. The enforcement agent was not its agent but an officer of the court.
County Court decision
The County Court found that the MoJ had not caused or contributed to Burton’s loss. It held that the enforcement agent was not the agent of the MoJ because he was an officer of the court. The MoJ was not liable for damages.
Burton appealed to the Court of Appeal. He argued that the MoJ was liable in its capacity as the creditor and he had proved the losses suffered as a result of the enforcement agent’s breaches.
The court’s decision
The Court of Appeal rejected the MoJ’s argument. The court believed that Parliament intended the creditor to be liable as set out in paragraphs 66(5) and (6).
The court ordered the MoJ to pay Burton general damages of £25 per day for loss of use of the vehicle for the period that it was clamped. It awarded him special damages of £180 in respect of alternative transport costs. The total damages were £905 plus interest.
Comments
This case confirms that a debtor can bring a claim against a creditor for breaches of the requirements in the Tribunals, Courts and Enforcement Act 2007. The debtor can claim for damages and for goods to be returned.
The County Court confirmed that enforcement agents should not clamp a vehicle subject to a hire purchase agreement which shows that the debtor has no beneficial interest in the vehicle. The enforcement agent had breached para 10 of Schedule 12 of the Tribunals, Courts and Enforcement Act 2007. This states that an “enforcement agent may take control of goods only if they are goods of the debtor”.
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