Sadiq Khan’s Transport for London (TfL) may have to pay back millions of pounds in Ulez fines following a legal challenge from European drivers.
Penalties worth up to £6.5m were issued illegally, according to lawyers acting for Dutch trucking firms who launched a legal review against TfL in the High Court.
This is the first legal challenge against TfL and its debt collection agency Euro Parking Collection (EPC) over the imposition of fines on foreign drivers and, if successful, could open the door to further cases in the courts.
The Ulez zone was launched in April 2019 and requires drivers of vehicles deemed not to meet certain emissions standards to pay a daily charge of £12.50, or a fine of up to £180 for non-payment. In August, it was extended to cover all 32 London boroughs.
TfL also operates a Low Emission Zone (LEZ) across London, which charges heavily polluting heavy goods vehicles to travel in the city. Fines of up to £3,000 can be imposed on companies that do not pay LEZ fees.
Both charges are also applicable to non-UK residents and companies, and TfL uses EPC to issue the fines outside the UK.
Heavy fines
This has led to widespread criticism from individuals and companies from the European Union who have been hit with heavy fines for inadvertently entering the zone, often complaining that they were not notified of the charging zone.
A Dutch company representing dozens of lorry firms has now applied for leave to launch a judicial review in the High Court against TfL, claiming it is illegally issuing fines to companies in the Netherlands.
The company, Transport in Nood BV, claimed that up to €7.5m in ULEZ and LEZ fines could have been wrongly issued to Dutch companies it represents, whose vehicles have been caught in TfL loading zones.
Antonio Jose Calado Oliveira, owner of Transport in Nood BV, told the Telegraph that the company was launching the case because of the unfair fines that have forced several businesses into bankruptcy.
He said: “People have been really upset, I’ve seen people in tears over this, other people have had to sell their trucks, it’s completely unfair, and we need to get an answer from the English court to see if it’s this is right. .”
Antonio Oliveira, owner of Transport in Nood BV, said: “We are sending this claim to repay the fines already paid, and the court costs. We are talking millions of pounds.
“We are not only talking about Holland, it must be even more throughout Europe, we are not the only country of course.”
Transport in Nood BV is employed by logistics and travel companies in the Netherlands to manage and pay fines and charges issued by the police or authorities in the country and abroad.
Legal challenge
They have now been enlisted to represent the UK law firm Smith, Bowyer and Clarke, who have applied to be heard in the High Court.
They said they decided to take action after their clients received more than 10,000 fine notices from TfL, via EPC, since November 2022.
Most of these fines came at the same time, he said, which means that some companies received hundreds of fines in one day last November, which cost thousands of Euros.
Mr Oliveira said one lorry driver carrying flowers to London had received almost 400 fines, costing him just under €400,000 in fines.
The Telegraph understands that the grounds put forward by the company for the challenge include claims that the fines were illegally denominated in Euros, which contravenes UK legislation which states that all fines should be given in pounds. .
He also claims that the EPC is using too high an exchange rate when converting these fines.
They have said that the maximum penalty for a LEZ should be £3,000 but it is being issued at €3,600 Euros (£3,200) when Dutch drivers are caught.
Change behavior
Another main claim relates to the fact that multiple fines were imposed in many cases at the same time. It will be argued in the case that if fines were imposed as and when they occurred, drivers and companies may be able to change their behavior to avoid additional fines.
Mr. Oliveira said that the case will affect about 10 of his clients but he could launch a new case with more clients, depending on whether he gets the High Court, and if he succeeds once.
He also said that most of the fines he had contested on an individual basis had been overturned but that the amount and principle of those fines had reduced the legal process.
Earlier this year, The Telegraph reported that thousands of fines for European motorists had to be overturned after it was issued to drivers whose cars met Ulez emissions standards.
It was also revealed that in France alone 79,160 penalty charge notices were sent in October and November 2022, compared to 19,000 in the previous 10 months.
A TfL spokesman said: “We have received a request for Penalty Charge Notices from claimants based in the Netherlands and are considering our response.” The Telegraph has attempted to contact the Euro Parking Collection.