The Court of Appeal, consisting of Lord Justices Newey, Baker and Philips, have
returned their Judgement in the case of KLG Trucking SRL v Secretary of State for the
Home Department [2024] EWCA Civ 737.
Matthew Howarth appeared as sole counsel for the Secretary of State for the Home
Department.
This case has a significant impact on the international haulage industry – for those
vehicle owners travelling into and out of the United Kingdom.
The appellant, KLG Trucking SRL, appealed against a penalty imposed by the Secretary
of State for the Home Department under Section 32 of the Immigration and Asylum Act
1999.
The penalty was imposed after clandestine entrants were discovered in a vehicle owned
by KLG.
The Secretary of State alleged that KLG failed to comply with regulation 2E(2) of the
Carriers’ Liability Regulations 2002, which requires the recording of certain actions in
relation to the securing of the vehicle against unauthorised access.
The Judge in the County Court at Nottingham upheld the penalty of £36,000, but the
Court of Appeal found that KLG did not breach regulation 2E(2) and the penalty should
be reduced.
The Court of Appeal re-exercised the discretion (§44-§50) and reduced the penalty to
£18,000, taking into account the Penalty Code and the fact that KLG had not breached
the regulations.
The Appellants argued that Vehicle Owners/Hirers should not be liable for the failure of
their drivers. The Court agreed with the Secretary of State, that Vehicle owners are
liable for the failure of their drivers.
The Decision is significant in that it demonstrates the SSHD are correct to impose
penalties even where the “vehicle owner has not been shown to have failed to comply
with the 2002 Regulations” §49.
The Court agreed in this case that it could be shown that the Appellant’s had complied
with Regulation 2E(2). That compliance only entitled them to a 50% reduction in penalty
and no further reduction was made, as they were not members of the Accreditation
Scheme.
Matthew Howarth has represented both Appellants and the Secretary of State widely in
Civil Penalty Liability cases having appeared at first instance in Link Spolka and
Counsel for the Respondent in this matter. He regularly appears before the High Court
and Court of Appeal as Attorney General Panel Counsel.
https://caselaw.nationalarchives.gov.uk/ewca/civ/2024/737
https://www.bailii.org/ew/cases/EWCA/Civ/2024/737.html