Praetura Asset Finance Ltd v S Line Rentals & Ors

Facts

Praetura Asset Finance Ltd brought a claim against S Line Rentals Ltd, Neil Vitale and Sundeep Gohil arising out of transactions entered into in 2019. A Mercedes S Class diesel saloon which had belonged to Mr Gohil was transferred to S Line and converted into a hearse by an Italian company, Vectoras; S Line then sold it to Praetura for £110,500 plus VAT, and on 1 October 2019 Praetura let it back to S Line under an unregulated hire purchase agreement running over five years. Mr Vitale and Mr Gohil, then directors of S Line, signed forms of guarantee and indemnity. Mr Gohil died in October 2021, and following payment difficulties the agreement was terminated for non-payment in November 2021; a second termination letter followed in December 2021 relying on the removal of the vehicle from the country, it having been discovered in Italy. Mr Gohil having died before the issue of proceedings, the claim proceeded only against S Line and Mr Vitale. The claimant obtained default judgment against S Line for a sum to be assessed, and on 19 December of the previous year the judge struck out Mr Vitale's defence, leaving judgment on liability but not quantum. The single surviving issue was Mr Vitale's allegation that the claimant had failed to mitigate its loss by not registering the conversion with the DVLA.