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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 70209
Experience:  Over 5 years in practice
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I own a restoration company (1 man band) and restored a car

Resolved Question:

I own a restoration company (1 man band) and restored a car for a client. He is unhappy with the car and l have offered him a full refund. He is demanding that l pay him an additional 20k as well as the refund. Can he do this?
Submitted: 1 year ago.
Category: Law
Expert:  Jo C. replied 1 year ago.
Hi.
Thank you for your question. My name is ***** ***** I will try to help with this.
Why does he say he is entitled to a further £20k?
Customer: replied 1 year ago.

I dont know. The car is a Jaguar E type and he might be claiming that that is the value of the car now. Total cost to him was 80k he is saying he will only accept a refund of 100k

Expert:  Jo C. replied 1 year ago.
Why are you responsible for the decline in value?
Customer: replied 1 year ago.

I don't think I am. When I quoted for the job, it was way underpriced and it probably cost me around 15 to 20k to complete. Market value of the car is around 80k and I thought under SOGA that if I offered a full refund, I would be doing all I should legally.

Expert:  Jo C. replied 1 year ago.
Well, it is not that simple.
It is certainly true that under the SOGA he cannot claim consequential losses from you. If your service fell below the appropriate standard then you do have to make offers but they don't get much better than a refund in full.
There is an argument though that, under the general law of contract, he can argue that you are responsible for consequential losses.
That said, I cannot immediately see how your breach caused this devaluation anyway and that is fatal to his claim.
Even if it did, the losses have to be within the contemplation of the parties at the time of the contract. It is difficult to assess really because he hasn't made clear in what way you have caused this loss at all.
Can I clarify anything for you?
Jo
Customer: replied 1 year ago.

The breach is obviously debateable but I don;t have the time or energy to fight it. Could he state that as the car (in his view) is worth more now than the (cheap) restoration cost and would that constitute a consequential loss?

Expert:  Jo C. replied 1 year ago.
Well, he could say anything he likes but he needs to prove it.
I'm not sure how that does amount to a loss. It seems to amount to a gain.
Anyway, his view is a non issue. He needs to get independent quotes of the value.
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