31 Aug 2007 11:40
Accident Exchange Group PLC31 August 2007 FOR IMMEDIATE RELEASE 31 August 2007 Accident Exchange Group Plc ("Accident Exchange" or "the Company") SUCCESSFUL UPDATE TO LEGAL CHALLENGE In the ordinary course of business, the Company provides vehicle hire on creditto the non-fault victims of road traffic accidents and recovers the resultanthire charges from the negligent party or their insurer. This may involve asolicitor being nominated to represent the client and the client issuingproceedings for recovery of those charges. The Company has previously disclosed details of a legal defence to a minority ofclaims outstanding where proceedings have been issued on behalf of such clients.This defence concerns an argument surrounding the enforceability of two variantsof its historic terms and conditions of hire. Two cases were recently heard toconclusion before two separate courts and in both cases, at the conclusion ofthe trial, judgement was reserved. Judgment in one of those cases was handed down today in favour of the Company'sclient confirming the enforceability of the second variant of terms andconditions referred to previously as the "A" Agreement and allowing therecoverability of the hire charges from the defendant or their insurer. The A Agreements comprise the majority of the debtors potentially affected bythe legal challenges and this decision from a Designated Civil Judge sitting inthe County Court is, therefore, likely to be significant in influencing thepositive outcome of a large number of cases currently listed before a number ofDistrict Judges in the County Court where the enforceability defence has beenpleaded. Whilst it remains open for the defendant to seek leave to appeal the decision,they did not seek leave to appeal when the judgement was handed down. We areconfident that if a petition to appeal were successful that in any such appeal,today's judgment in favour of the Company will be upheld. No judgement has yet been handed down in respect of the case concerning theenforceability of the other disputed terms and conditions (previously referredto as the "X" Agreements) but based on advice from our legal team, the Companyremains confident of a successful outcome to that case. Ends CONTACTS: Accident Exchange Group PlcMartin Andrews, Group Finance Director 08700-053 649 Numis Securities Ltd 020-7260-1000Lee Aston BanksideSteve Liebmann or Simon Bloomfield 020-7367-8888 About Accident Exchange Based in Coleshill, West Midlands, Accident Exchange delivers accident management and other solutions to automotive and insurance related sectors. Fully listed, the stock code is LSE: ACE. This information is provided by RNS The company news service from the London Stock Exchange