At the heart of the dispute is the interpretation of the words ‘market value’ – what Royal Mail promises to cover for losses under their ‘Special Delivery Next Day’ or ‘Special Delivery 9.00am’ services.
Bruce Goulborn, a dealer in coins, banknotes and postcards who conducts many transactions by mail order and uses the services regularly, took market value to mean what he had sold the goods for before he posted them to his customers.
Royal Mail argue that it means what he paid for them himself.
His ongoing dispute over the loss of 21 postcards mailed to four different sources led Mr Goulborn to take legal action. At Rhyl County Court in June, Royal Mail presented a 130-page document on the issue, but Deputy District Judge Clwyd Jones ruled that – in accordance with the Oxford English Dictionary – ‘market value’ is saleable value.
Consequently, he awarded Mr Goulborn £73.18 in compensation and the court fee of £55.
However, because county court decisions do not automatically set precedents for other courts and the sum involved was small, Royal Mail chose not to appeal and do not feel obliged to change their policy or the wording of their terms and conditions.
“Basically we don’t pay someone’s profit,” a Royal Mail spokesman told ATG. “Royal Mail’s position on payment of compensation for lost items remains unchanged and is based on actual loss.
“Where an item is lost or damaged beyond repair, then actual loss is the amount it cost the customer to acquire, purchase or manufacture the item subject to condition, age and depreciation.“
Mr Goulborn argues that his actual loss was what his customers had already agreed to pay him on satisfactory inspection of the goods.
