A creditor who hired HGVs to Seafield Logistics before it entered administration (CM 19 June) has threatened legal action after one of its vehicles was damaged in a collision.
LTH in Kent said it rented up to seven lorries to the haulier. However, one has yet to be returned, as it was involved in a crash in May, and is sitting in a repair yard, with no party willing to take responsibility and pay to repair or write-off the vehicle.
Administrator Grant Thornton has told LTH director Fiona Shaw it did not authorise anyone to recover the damaged vehicle and that it is up to LTH, which as a Seafield creditor is already owed about £52,000, to arrange for its collection (and repair/disposal).
Adding a further complication, it is understood that the driver of the crashed vehicle was under the legal age specified by Seafield’s insurer.
Shaw told Commercial Motor she would take the matter further unless Seafield’s insurer or the administrator pays out for the estimated £32,000 write-off of the truck and additional storage charges. “Our vehicle went into their hands on the basis that it would be insured; it’s written into the agreement,” she said.
“We have had vehicles that have been on hire involved in accidents and it’s the responsibility of the person hiring the vehicle to deal with it through their insurers. The crux of the matter is the vehicle was insured by Seafield and was its responsibility,” said Shaw.
Steve Spitzer, associate director at both LTH and Seafield’s insurance broker, The Burley Group, admitted that the situation was difficult. He said: “The responsibility lies with Seafield, the people who leased the vehicle from LTH.
“It’s very difficult for LTH and I am concerned that it hasn’t been resolved, but I don’t know how it will be because the company entered administration.”
Grant Thornton said it was not in a position to comment.
. This article first appeared in the 14 August edition of Commercial Motor. Why not subscribe?
