Investor REL has TC decision overturned

Repute saved as Andy Scott’s investment company wins appeal 

Andy Scott’s REL Capital, the UK turnaround investor, has won its appeal against a Traffic Commissioner’s decision.

Upper Court Judge Hemmingway has overturned the Traffic Commissioner’s decision not to grant a license to REL Haulage Ltd, one of Andy Scott’s REL Capital UK turnaround investments, finding the original decision to have been unfair. The Upper Tribunal found that the Public Inquiry conducted by Traffic Commissioner for the West Midlands, Nick Denton, was unfair to REL Haulage and Mr Scott, who was effectively put on trial in his absence. Hemmingway ordered the unlawful decision immediately be set aside and overturned. The decision was overturned on all grounds.

“It was a total shock to have a judge cast aspersions on my character on the UK government website, putting press releases out by someone who clearly didn’t approve of our business model” – Andy Scott

Andy Scott has separately applied to the High Court personally for Judicial Review against the Secretary of State for Transport, which will now proceed for permission hearing and is scheduled for January. He will also be applying for a substantial costs applications against the government.

REL Capital is still seeking to buy coach businesses. It has already taken on John James Luxury Travel, Redwing and Davian Coaches since 2020.

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Human rights barrister, Geoffrey Robertson KC, acting for Andy Scott, said: “Mr Scott has suffered a grave injury to his reputation and right to privacy, protected by Article 6 and Article 8 of the convention on Human Rights Act by The traffic commissioner unfair and unlawful decision. He was not in fact on trial but was effectively put on trial in his absence.

“It would appear Mr Denton personal opinion of Mr Scott investment model, rescuing failing companies, clouded his decision” – Human rights barrister, Geoffrey Robertson KC

“It would appear Mr Denton’s personal opinion of Mr Scott investment model, rescuing failing companies, clouded his decision. It is a fundamental principle of Law that decision-takers should ‘hear the other side’, the Traffic Commissioner was not entitled to make adverse findings against Mr Scott who was not allowed a fair opportunity to respond to or refute the allegations against him which also proved to be fundamentally wrong.”

The original decision by the Traffic Commissioner, published in January 2022, found REL Haulage lacks the necessary repute for the granting of a HGV licence. The TC claimed Andy Scott and business associate Adam Lewis have ‘a long history of failed road haulage companies behind them – companies that enter liquidation owing large sums of money to HMRC and other creditors’. The TC said they ‘hive off the profitable parts into new companies, leaving creditors of the old companies high and dry’. He believed a similar intention lay behind the application from REL Haulage.

Simon Clarke, transport barrister acting for REL Haulage, told the Upper Tribunal that “the original Traffic Commissioner’s decision of January 2022 was plainly wrong, fatally flawed and appeared to have been based on incorrect research. The Traffic Commissioner unlawfully pierced the corporate veil making judgement against shareholders.”

“I’m so pleased we stuck at it and the Upper Tribunal has ruled the Traffic Commissioner’s decision to be unlawful, unfair and overturned on every ground, despite the huge costs which we will now hope to reclaim from government” – Andy Scott

Andy Scott, Chairman of REL Capital, said: “It’s been a crazy year after hearing about the Traffic Commissioner’s decision in January. It was a total shock to have a judge cast aspersions on my character on the UK government website, putting press releases out by someone who clearly didn’t approve of our business model.

“His decision has affected everything. Banks, suppliers, people not wanting to work with us on new deals. Added to that; trying to get a judge’s decision overturned has been incredibly tough when I wasn’t even a party to the proceedings. I’m so pleased we stuck at it and the Upper Tribunal has ruled the Traffic Commissioner’s decision to be unlawful, unfair and overturned on every ground, despite the huge costs which we will now hope to reclaim from government.

“I will now take my fight to the High Court for Judicial Review against the Secretary of State. My career has been well documented, that I got wiped out by losing my hotel group after the 2008 crash, losing my home, getting run over by a taxi breaking both legs and many other bones, suffering depression after my only business failure in my career.

“I grafted hard to rebuild my life and career ten years ago, going back to work on building sites from nothing which I am immensely proud of, now assisting other companies try and avoid what I went through, saving over 600 jobs along with way; only to be knocked back down by a judge saying I was a person of bad repute as I’ve had one business failure over ten years ago was incredible, especially as we now have a successful and profitable portfolio of companies turning over £20 million and making £2 million profits per year.

“I’m proud to invest in some of the management teams of leading UK transport companies we have helped turnaround, including three of the leading London coach operators and will continue to do so. We urgently need to how we assess failure in the UK.

“Business as my career illustrates is about rolling with the punches and jumping back up off the floor when you get knocked down.”

According to REL, this is the 19th successful appeal against Traffic Commissioner Denton’s decisions. Nick Denton was appointed to a new government aviation panel in April this year. Miles Dorrington is now the Acting Traffic Commissioner for the West Midlands.

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