QUEENSLAND CIVIL AND
ADMINISTRATIVE TRIBUNAL
CITATION:
Caruana v Market Direct Group Pty Ltd [2024] QCAT 512
PARTIES:
LESLEY CARUANA (applicant)
DAVID CARUANA
(APPLICANT)
v
MARKET DIRECT GROUP PTY LTD (respondent)
APPLICATION NO/S:
MVL189-23
MATTER TYPE:
Motor vehicle matters
DELIVERED ON:
22 November 2024
HEARING DATE:
5 November 2024
HEARD AT:
Richlands
DECISION OF:
Member Jensen
ORDERS:
The application is dismissed.
CATCHWORDS:
TRADE AND COMMERCE – COMPETITION, FAIR TRADING AND CONSUMER PROTECTION LEGISLATION – CONSUMER PROTECTION – GUARANTEES, CONDITIONS AND WARRANTIES IN CONSUMER TRANSACTIONS – GUARANTEES, CONDITIONS AND WARRANTIES – whether caravan of acceptable quality – whether failure to comply with consumer guarantee a major failure – whether consumer entitled to damages
Australian Consumer Law, s 54, s 259, s 260
Competition and Consumer Act 2010 (Cth), Schedule 2
FairTrading Act 1989 (Qld), s 50A, s 50C
APPEARANCES & REPRESENTATION:
Applicant:
Self-represented
Respondent:
Mr Zammit
REASONS FOR DECISION
Issues
The issue for determination is whether the applicant is entitled to damages under the Australian Consumer Law (the ‘ACL’) with respect to alleged safety issues relating to an XT 16 HR Island Caravan (the ‘caravan’) purchased by the applicant from the respondent during May 2022. In particular, the issue is whether the respondent supplied a caravan to the applicant that was of acceptable quality as required by section 54(2) and (3) of the ACL.
The applicant’s claim is for $78,990 being the reimbursement of the purchase price of the caravan or in the alternative the sum of $10,000 costs incurred in rectifying problems with the caravan plus legal costs of $880 and compensation of $50,000 being the devalued value of the caravan for resale. The respondent rejects the claim and contends that the caravan is safe and fit for purpose.
The two applicants are Mr and Mrs Caruana. In these reasons, unless I refer to them by name, they will be referred to collectively as the applicant.
Jurisdiction
Pursuant to section 50A of the Fair Trading Act1989 (Qld), the Tribunal is vested with jurisdiction in relation to motor vehicles in respect of certain actions under the ACL. A motor vehicle is defined in section 12(1) of the Motor Dealers and Chattel Auctioneers Act2014 (Qld) to include a caravan. As a caravan is the subject of the application, I find that the Tribunal has jurisdiction to hear and determine the matter.
The respondent’s obligations
A pre-requisite of the ACL is that goods must have been acquired as a consumer. Pursuant to section 3(1)(b) of the ACL, a person is taken to have acquired goods as a consumer “if the goods were of a kind ordinarily acquired for personal, domestic or household use or consumption.”
Section 54(1) of the ACL provides that where a person supplies goods in trade and commerce, the goods are guaranteed to be of acceptable quality. The time at which the goods are to be of acceptable quality is the time they are supplied to the consumer.[1]
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- Case
- [2024] QCAT 512
- Decision Date
CaseChat Overview and Summary
The court considered the definition of "acceptable quality" as provided by the Australian Consumer Law, which includes factors such as safety, durability, and freedom from defects. The court also examined the consumer’s evidence regarding the caravan’s condition and the extent of its defects. It assessed whether these defects were significant enough to constitute a major failure under the law. Additionally, the court deliberated on the consumer's right to seek damages in the event of a major failure, considering the proportionality and reasonableness of the requested damages.
In delivering the judgment, the court determined that while there were defects in the caravan, these did not rise to the level of a major failure under the Australian Consumer Law. The defects were found to be minor and did not significantly impair the caravan’s functionality or safety. Consequently, the court ruled that the consumer was not entitled to the full amount of damages sought. The application for damages was dismissed, as the consumer’s claims did not meet the threshold for a major failure under the consumer protection legislation.
Orders
Orders of the court
The application is dismissed.
Background
Background to the litigation
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Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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