Avci v Inchurch Automotive Pty Ltd t/a Parramatta Motor Group

Melisa Avci brought an application against Inchurch Automotive Pty Ltd trading as Parramatta Motor Group and FCA Australia Pty Ltd, seeking remedies under the Australian Consumer Law for the failure to comply with the guarantee as to acceptable quality in relation to a motor vehicle. The case was heard and determined by the Civil and Administrative Tribunal of New South Wales. The primary issue before the Tribunal was whether Inchurch Automotive Pty Ltd could still elect to repair the motor vehicle to remedy the failure, or if the reconstitution of the motor vehicle with a new engine amounted to a replacement, which would allow Ms Avci to elect to have the vehicle replaced. The Tribunal considered the evidence and submissions from both parties before reaching its conclusion.

The Tribunal found that the failure in the motor vehicle was a major failure, which entitled Ms Avci to reject the vehicle. The Tribunal further found that the reconstitution of the motor vehicle with a new engine amounted to a replacement, and not a repair, as it involved the substitution of a significant part of the vehicle. Consequently, Inchurch Automotive Pty Ltd was no longer entitled to elect to repair the vehicle, and Ms Avci was entitled to reject it. The Tribunal made orders that Inchurch Automotive Pty Ltd must accept the return of the motor vehicle, pay certain amounts to Ms Avci and a bank, and transfer unencumbered title in the vehicle upon performance of certain conditions. Costs applications were also addressed in the orders, with a limit on the length of submissions and options for dealing with such applications on the papers or through a hearing.