A compensation claim for loss of profits, due to “unfair competition” from holders of Section 19 permits, has been issued by Wish Travel against the NW Traffic Commissioners’ Office and Wigan Council.
The defendants now have up to 28 days to either settle the claim, or provide a written defence.
Wish Travel & Transportation Solutions Ltd, headed by Tony Riley, is the first to make such a claim.
Initially £5,000 is being claimed as Wigan Council has failed to respond to Freedom of Information requests detailing how many contracts it awarded over the two-years under question.
Once this information is revealed, the claim amount could be revised upwards, says Mr Riley.
The claim follows the award of commercial home-to-school contracts to permit holders. Mr Riley argues that both organisations “breached their duty of care” by failing to apply EC Regulation 1071/2009.. He adds that council’s application form “clearly encouraged” permit holders to bid for tenders.
The firm says it “applied for numerous contracts” that were awarded to holders of Section 19 permits. While Mr Riley accepts that he would not have won all contracts, he argues that he was denied some of the work, because he was undercut by permit holders with an unfair advantage due to operating under a lower-cost regulatory regime.
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