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Supreme Court Ruling

A motorist has lost his Supreme Court challenge against ‘unfair’ fines imposed by a car park, in a case which will set a precedent in consumer contracts law. Chip-shop owner Barry Beavis took action after he was given an £85 ticket for overstaying a two-hour parking limit by almost an hour. His case was sent to the Supreme Court after the Court of Appeal ruled against him in April. Beavis v ParkingEye hinged on whether the fine charged by parking management company ParkingEye is classed as a penalty, which would make it unlawful as penalties need to bear a relation to an actual loss incurred. In this case the company does not incur any loss from an overstay. But the Supreme Court ruled that the fine was not a penalty as the charge authorises the company to control access to the car park in the interest of customers and the wider public. Supreme Court president Lord Neuberger and Lord Sumption ruled that the charge was not unfair, and that overstaying penalties are a ‘normal feature of parking contracts’. The ruling was agreed on by six out of the seven justices while Lord Toulson dissented. The judgment said fines were beneficial to motorists themselves as they make parking spaces available to them which might otherwise be clogged up by long-stay users.

Extract from Law Gazette

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