Acquired Haulier Regains Custom
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A N application by Mr. E. E. Burton. Wisbech haulier. that certain words should be struck out of the Road Haulage Executive's answer to his claim for compensation for cessation of business was heard by the Transport Arbitration Tribunal in London this week. Decision was reserved.
The paragraph concerned read: "The applicant has, since the date of the transfer retained or regained the custom of certain customers who contributed to the profits of the said three years and in particular has regained the custom and contracts of those persons or firms whose goods he carried from Lime to time during those years in the vehicles operated under A' contract licences."
For Mr, Burton. Mr. M. D. Van.Oss said that there was nothing to prevent a person. whose business had been transferred, from setting up a new business—lie must not, however, canvass his old customers—but it was now being said by the R.H.E. that that should operate in diminution of the compensation payable under the terms of the Act.
Mr. Bernard Braithwaite, for the R.H.E., said it was substantially a question of payment for goodwill, although called by another name. Because Mr. Burton had entered into competition with the R.H.E. since the transfer of his business, that had decreased the likelihood of profits that would be earned by the R.H.E.
The chairman pointed out that but for the operation of the Act, no profits at all would have been earned by the R.H.E. The possibility of someone entering into competition was surely an incident of being in business.
Mr. Braithwaite submitted that since Mr. Burton had entered into competition, it was a factor which the Tribunal would have to take into consideration in assessing compensation, as anything which affected the maintainability of profits was relevant. The Executive said, in effect, that as a result of this competition. the maintainability of profits had been seriously affected.