The claimant must prove the need for a hire vehicle, that the hire was reasonable, and the period of hire. If the defendant alleges the claimant could have hired more cheaply (the BHR argument), the burden of proving the Basic Hire Rate falls on the defendant with direct evidence of local rates.
What is a BHR report?
A BHR (Basic Hire Rate) report is evidence submitted by the defendant to establish the rate a claimant could have hired a vehicle for on the open market. It typically includes quotes from mainstream suppliers in the claimant's locality. The burden of proving the BHR lies with the defendant, and the evidence must be specific to the claimant's circumstances.
What are the eight principles in credit hire cases?
The eight principles were set out by the Court of Appeal to guide credit hire disputes. They cover the claimant's duty to mitigate, the recoverability of credit hire rates, the approach to impecuniosity, and critically, that the defendant must prove the Basic Hire Rate through direct evidence rather than assumption.
What is the difference between a credit hire rate and a Basic Hire Rate?
A credit hire rate (CHR) includes the cost of providing the vehicle on credit, plus additional services like delivery, collection, and insurance. The Basic Hire Rate (BHR) is the underlying rate stripped of credit and additional services. If the defendant argues the CHR is too high, they must prove the BHR with direct evidence.
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