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Tribunal backs RIM Dee case

7th May 1992, Page 6
7th May 1992
Page 6
Page 7
Page 6, 7th May 1992 — Tribunal backs RIM Dee case
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Which of the following most accurately describes the problem?

• The Road Haulage Association has declared itself "absolutely delighted" with last week's ruling by the Transport Tribunal upholding the association's appeal against John Dee Ltd's Operator's Licence.

North Eastern Licensing Authority Frederick Whalley awarded a two-year licence in December (CM 19 Dec-2 Jan).

RHA director of operations Tim Inman says: "This is a pivotal case which will give us the confidence to mount objections more than in the past."

But he warns that this sort of action is expensive. As well as legal representation, the RHA employed accountants to analyse John Dee Ltd's accounts.

"There should be provision to award costs to the winner," says Inman. At the end of the two-day tribunal hearing, Judge Harold Wilson said reasons for allowing the RHA appeal would be given in writing with the decision taking effect six weeks afterwards, allowing John Dee Ltd time to make a fresh application.

Judge Wilson said the decision would rest on the grounds of appeal, presented for the RHA by transport lawyer Stephen Kirkbright, which alleged the LA's decision had gone against the weight of evidence or had been perverse.

John Dee Ltd says it will decide whether to appeal when it knows the reasons its 0-licence is being revoked: "It would be premature to make a statement at the moment," says a company spokesman.

Kirkbright told the tribunal that some evidence given by John Dee Ltd directors during last year's public enquiry had been false and showed a desire to mislead the LA. John Dee Ltd director John Davison said Kirkbright had been evasive about the company's share capital, and statements about shares being paid for were untrue.

Kirkbright said John Dee Ltd had misled the LA on its working capital by claiming it had £203,990 available when accounts showed an excess of liabilities over assets of more than £200,000.

An undertaking was made to the North Eastern LA that more capital would be injected, but company accounts were "massaged" by back-dating an agreement for the sale of vehicles for £250,000 and showing only a monthly back-hire charge, said Kirkbright.

He added that a debenture in favour of client Courage Beer Company, which could have cost John Dee £500,000, had not been disclosed.

For the company, Roger Hird said there had been no intention to mislead the LA. The directors were not expert in giving evidence and could not keep complex figures in their heads — it was not surprising they had become muddled, he said.

John Dee Ltd's two-year licence authorises 76 trucks and 200 trailers which previously ran on an interim licence from depots in Ferryhill, County Durham; Darlington and Knottingley. Its main contracts are with Courage and Magnet Joinery.


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