I have been issued with a parking charge notice for using the wrong registration number, what are my options ?
As a general rule, only a clause which represents a genuine pre-estimate of the direct loss caused by the breach is enforceable under the English law. As Per Christopher Clarke LJ in Cavendish Square Holding BV v Talal El Makedessi;
The underlying rationale of the doctrine of penalty is that the Court will grant relief against the enforcement of provisions for payment (or the loss of rights or the compulsory transfer of property at nil or an undervalue) in the event of breach, where the amount to be paid or lost is out of all proportion to the loss attributable to the breach. If that is so, the provisions are likely to be regarded as penal because their function is to act as a deterrent.’ (para [120])
What is a penal clause ?
A penal clause is one which provides that upon breach of a primary obligation under the contract a secondary obligation shall arise on the part of the party in breach to pay to the other party a sum of money which does not represent a genuine pre-estimate of any loss likely to be sustained by him as the result of the breach of primary.
An example of a penal clause : “You will be issued with a parking ticket of £100 if you enter the wrong registration number”;
Many parking companies have wrongly relied in the case supreme case of ParkingEye Limited v Beavis to recover from motorists who accidentally enter the wrong registration details when paying for their parking fees. In a essence, there is no direct loss where a wrong registration number has been entered but the requisite fee has been paid.
In case of ParkingEye Limited v Beavis, a loss could be prove as there was an overstay. The Court held the £85 levied on Mr Beavis was a pre-estimate of loss. Further ParkingEye Limited had a legitimate interest in enforcing the clause to properly managing the car park and deterring motorists from occupying spaces beyond the time allowed for and to ensure further income from other motorists to use the car park.
What are my options after receiving a parking charge ?
Do not pay it and do not ignore it, try to appeal it or respond to the letter before claim by providing evidence of your V5C (Vehicle log book). Alternatively email us at legalteam@contestorlegal.co.uk for assistance. We have successfully represented many people in a similar situation.