Munro Midlands has lost its bid to secure an O-licence after an appeal judge ruled there had been a lack of "clear water" between it and revoked haulier Munro and Sons.
Upper Tribunal Judge Hugh Carlisle QC upheld the decision of Traffic Commissioner for Scotland Joan Aitken, which was made at a public inquiry in July last year, to refuse an application for six vehicles and six trailers from Roderick and Claire Munro, bosses of Munro Midlands in Alness, Ross-shire.
Munro and Sons, run by Roderick Munro's father William and also based in Alness, had its licence revoked in May 2009.
The revocation followed a Health and Safety Executive prosecution and fine following an incident in 2006 when a Michigan wheeled bucket loader being carried by one of its low-loaders became detached and rolled off backwards into a car, killing one of the occupants and seriously injuring the other.
In 2008, a trailer being towed by one of the firm's trucks became detached, moved across the road and collided with a car, severely injuring the driver. It was discovered that a towing draw-bar had a defective trailer coupling safety locking device.
Roderick Munro had worked for William Munro Construction (Highland) - the parent company of Munro and Sons (Highland) - between 1997 and 2000. He then moved to Derbyshire to work as a manager for Tarmac until 2007.
At the inquiry, Aitken rejected the Munro Midlands licence application, saying she could not trust Roderick Munro and that his "family connections" had been a significant factor. Munro argued at the appeal that Aitken had been "unduly influenced" by his association with his family and there was no basis on which she could find that he was acting as a "front" for his father.
However, the appeal judge agreed with the TC's ruling and said the application from Munro Midlands had been "premature".
Judge Carlisle said: "We think that it is commonplace in family businesses that fathers have difficulty in letting go and that they only retire when they have actually done so.
"In view of the findings previously made against William Munro, we think he is unlikely to give up control until clear water between him and the appellants is visible."
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