Chep wins judgment
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PALLET SPECIALIST GKN Chep has won a county court judgment which strengthens its campaign to stop non-members of the National Pallet and Container Pool from using its pallets.
It has won a case in Lowestoft to regain possession of Chep pallets held by Hodson Pallet Services.
The order, made by Judge Head, provided for the return to Chep of all Chep pallets in Hodson's possession.
In future, Hodson has to notify Chep of all Chep pallets which come into its possession and of their source; and to hold pallets awaiting collection by Chep.
Hodson was also ordered to inform Chep of all the people who had sent it Chep pallets or bought them from the company since January 1982. Hodson was ordered to pay Chep's legal costs.
The judgement included the following paragraph: "It is quite clear that the property in Chep pallets at all times remains in Chep, and I do not think it could have been argued that the title could have been defeated."
When considering the injunction's effect on Hodson's business, the judge said: "The defendants cannot run their business at the plaintiff's expense, nor can anyone else. The defendants may have a grievance if they are the first party to be picked on, but it seems that Chep is at the start of 'a campaign'.
"The plaintiffs have rights at law. There is nothing in the defence which challenges those rights."
Michael McCarthy, managing director of GKN Chep, said: "The vast majority of pallet dealers respect the ownership of GKN Chep Blue pallets; but wherever we encounter abuse — in dealers or in other businesses — we have to take steps to stop it."