BNMB Transport Pty Ltd v Mercedes-Benz Australia Pacific Pty Ltd & Anor

BNMB Transport Pty Ltd (BNMB) brought proceedings against Mercedes-Benz Australia Pacific Pty Ltd and Mercedes-Benz Financial Services Australia Pty Ltd (the respondents) concerning a Mercedes-Benz AMG sedan. BNMB alleged that the vehicle suffered a failure of its sub-frame, which it contended was due to a manufacturing defect and therefore a breach of consumer guarantees under the Australian Consumer Law. The respondents argued that the sub-frame failure was caused by the vehicle being driven in a harsh manner, not by any defect.

The primary legal issue before the court was whether the collapse of the sub-frame was caused by a manufacturing defect, thereby entitling BNMB to relief under the Australian Consumer Law, or whether it was caused by the manner in which the vehicle was driven. A related issue concerned the liability of BNMB for a finance facility provided by Mercedes-Benz Financial Services Australia Pty Ltd for the purchase of the vehicle.

Judge Wilson considered the evidence presented, noting the absence of direct evidence regarding the specific manner in which the vehicle was driven or the precise cause of the suspension collapse. The court reviewed authorities on the drawing of inferences, concluding that it was open to infer that the collapse was caused by harsh driving. This inference was based on the nature of the vehicle, the circumstances of its use, and the absence of any evidence pointing to a manufacturing defect. The court found that BNMB had not discharged its onus of proving a breach of consumer guarantees.

Consequently, the court dismissed BNMB's claim for relief under the Australian Consumer Law. The court also found BNMB liable for the outstanding sum under the finance facility provided by Mercedes-Benz Financial Services Australia Pty Ltd.