A recent decision of Traffic Commissioner Mullan provided an interesting example of a case where despite serious shortcomings, the sole director retained his reputation as a Transport Manager although the licence was revoked.
MDB Logistics Limited lost its licence after allowing another entity to operate vehicles under its authority. Despite a previously clean history and constructive engagement with the DVSA investigation, the Commissioner found that long-term licence lending and lack of oversight amounted to serious and persistent failings.
The application by J&M Plant Hire Ltd (heard at the same time) was refused.
The interesting feature in this case is that the sole director was also the nominated Transport Manager. Although the licence was revoked for lack of repute, the director retained his repute as Transport Manager. How can that be?
In the case of (2014 UKUT 0460 (AAC) Walter the Upper Tribunal considered the position of an individual who was both a director and the nominated Transport Manager. The Tribunal made it clear that, in practical terms, it will often be difficult — and sometimes artificial — to separate a person’s repute in one capacity from their repute in the other.
The Tribunal recognised that:
– The assessment of good repute is holistic.
– Where the same individual is effectively the controlling mind of the operator and also the Transport Manager, their conduct cannot easily be compartmentalised.
– Failings attributable to the business may directly inform the assessment of the Transport Manager’s repute.
– Equally, systemic compliance failings may reflect on both capacities simultaneously.
In MDB Logistics Ltd, the Commissioner did not explain how the Transport Manager managed to retain his repute in that capacity, whilst the repute of the company (of which he was the sole director) was lost.
In previous cases I have been asked to put forward an argument for effectively ‘splitting the atom’ and justifying why the Transport Manager should live to fight another day when the reputation of the company – in light of the dishonesty – will inevitably be lost.
The decision underscores a consistent regulatory principle: operator licensing is built upon trust.
Even if you are sole director and Transport Manager, it can be possible to persuade the Commissioner that despite reputational shortcomings you should be allowed to continue working as a Transport Manager/ although your operator’s licence is likely to be revoked.
Is this a perverse decision or a way of achieving a proportionate outcome?
Read more here: Licence Revoked, Application Refused, Repute Tarnished – GOV.UK
