A taxi driver licensed by Perth and Kinross Council was in a crash with an Asda vehicle on 4 February 2024. Asda accepted liability for the damage to his cab. Perth Sheriff Court heard that repairs were estimated at about two weeks and £3,146. He did not get his own vehicle back until 15 July 2024, more than five months later.
The hire
He hired a replacement taxi for 162 days. The bill was £31,792. The court accepted that he relied on regular school and social care transport contracts, and on other taxi work, and that he could not afford to stop while the cab was being repaired. He had limited savings, significant debts, and regular household and business expenses. Asda's claims handler had been told he needed a replacement to keep his contracts.
Sheriff Alison McKay ruled that the credit hire was reasonable and that he had taken reasonable steps to limit his losses. "The pursuer could not afford not to work. 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."
The 117 days
The court did not allow the full hire period. Repairs were authorised in May 2024. More than two months then passed before the vehicle was ready, and the driver had not produced enough evidence to explain that delay. The sheriff limited Asda's liability for the replacement to 117 days. The sum of £23,000 includes delivery charges and VAT. A further hearing is to deal with the legal expenses.
STV News reported the ruling on 21 October 2026. Asda ordered to pay taxi driver £23,000 after car written off in crash in Perth and Kinross