Making A Third-Party Claim To Controlled Goods
Paragraph 10 of Schedule 12 to the Tribunals, Courts and Enforcement Act 2007 provides that an enforcement agent may take control only of goods of the debtor. A person who says that controlled goods belong to that person rather than the debtor may invoke paragraph 60 of Schedule 12 to the Tribunals, Courts and Enforcement Act 2007 and Part 85 of The Civil Procedure Rules 1998.
Paragraph 10 of Schedule 12 to the Tribunals, Courts and Enforcement Act 2007 provides that an enforcement agent may take control only of goods of the debtor. A person who says that controlled goods belong to that person rather than the debtor may invoke paragraph 60 of Schedule 12 to the Tribunals, Courts and Enforcement Act 2007 and Part 85 of The Civil Procedure Rules 1998.
Written notice of the ownership claim
Rule 85.4(1) of The Civil Procedure Rules 1998 requires the third-party claimant to give the enforcement agent written notice as soon as practicable and, in any event, within seven days of the goods being removed. The notice must include:
- the claimant's full name and address and confirmation that it is the address for service;
- a list of every item claimed; and
- the grounds of the claim for each item.
Legal correction: rule 85.4(1) of The Civil Procedure Rules 1998 does not make the seven-day longstop run from the initial clamp or other act of taking control. Its express trigger is removal of the goods.
What happens after notice?
Under rule 85.4(2) to rule 85.4(4) of The Civil Procedure Rules 1998, the enforcement agent has three days to notify the creditor and any other claimant; the creditor and other claimant then have seven days to admit or dispute the claim; and the enforcement agent has three days to notify the claimant of the response.
If the claim is admitted, rule 85.4(6) of The Civil Procedure Rules 1998 provides that the enforcement power ceases to be exercisable against those goods and, if they were removed, they must be made available for collection as soon as reasonably practicable.
If the claim is disputed
Rule 85.5 of The Civil Procedure Rules 1998 requires the claimant who wishes to maintain a disputed claim to make a court application supported by a witness statement describing the goods and setting out the grounds of ownership. The required payments under paragraph 60(4) of Schedule 12 to the Tribunals, Courts and Enforcement Act 2007 must be addressed; rule 85.5(6) of The Civil Procedure Rules 1998 permits an immediate request for a direction that the payment be a proportion of the value.
Ownership disputes are evidence-sensitive. A V5C registration document is relevant to a vehicle but is not, by itself, conclusive proof of beneficial ownership. Retain the sale agreement, proof of payment, communications with the seller, insurance, tax and maintenance records, advertisements, possession history and a coherent witness account.
Template: Notice Of Claim To Controlled Goods
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