Foley v Westco Cairns Pty Ltd

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QUEENSLAND CIVIL AND
ADMINISTRATIVE TRIBUNAL


CITATION:

Foley v Westco Cairns Pty Ltd [2020] QCAT 345

PARTIES: TIMOTHY GERALD FOLEY

(applicant)

v

WESTCO CAIRNS PTY LTD

(respondent)

APPLICATION NO/S:

MVL021-19

MATTER TYPE:

Motor vehicle matters

DELIVERED ON:

9 September 2020

HEARING DATE:

1 September 2020

HEARD AT:

Brisbane

DECISION OF:

Member Cranwell

ORDERS:

1.   Timothy Gerard Foley is required to return the motor vehicle the subject of these proceedings to Westco Cairns Pty Ltd within 7 days of the date of these orders.

2.   Westco Cairns Pty Ltd is required to pay to Timothy Gerard Foley the amount of $29,990 within 28 days of the date of these orders.

3.   Westco Cairns Pty Ltd is required to pay to Timothy Gerard Foley costs the amount of $345.80 within 28 days of the date of these orders.

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 motor vehicle of acceptable quality – whether failure to comply with consumer guarantee a major failure – whether goods rejected during the rejection period – whether consumer entitled to refund

Competition and Consumer Act 2010 (Cth), Schedule 2 – Australian Consumer Law s 54, s 259, s 260, s 262, s 263

Fair Trading Act 1989 (Qld), s 50A

Campbell v Caravan & RV Central Pty Ltd t/as Avan New South Wales & FCA Australia Pty Ltd [2016] NSWCATCD 90

Cary Boyd v Agrison Pty Ltd [2014] VMC 23
Haisman v Drive (Aust) Pty Ltd  [2020] QCAT 44
Medtel Pty Ltd v Courtney (2003) 130 FCR 182

Morphy v Beaufort Townsville Pty Ltd [2018] VCAT 1520

APPEARANCES & REPRESENTATION:

Applicant:

Self-represented

Respondent:

Self-represented

REASONS FOR DECISION

  1. On 24 September 2019, Mr Foley (‘the applicant’) filed an Application – Motor Vehicle Dispute with the Tribunal.  The named respondent is Westco Cairns Pty Ltd (‘the respondent’).

  2. The applicant is the owner of a 2016 Volkswagen Passat (‘the motor vehicle’). 

  3. The applicant purchased the motor vehicle from the respondent on 27 March 2017 for $29,990.

  4. The applicant seeks relief under the Australian Consumer Law, which is Schedule 2 to the Competition and Consumer Act 2010 (Cth). The relief sought by the applicant is a refund.

  5. Section 50A of the Fair Trading Act 1989 (Qld) vests the Tribunal with jurisdiction in relation to motor vehicles in respect of certain actions under the Australian Consumer Law.

  6. Pursuant to s 3(1)(b) of the Australian Consumer Law, 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’. This includes the applicant’s motor vehicle.

Guarantee of acceptable quality

  1. Section 54(1) of the Australian Consumer Law provides that, where a person supplies goods in trade or commerce, the goods are guaranteed to be of ‘acceptable quality’.

  2. The time at which goods are to be of acceptable quality is the time at which the goods are supplied…

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Details
Case
[2020] QCAT 345
Decision Date

CaseChat Overview and Summary

The matter of Foley v Westco Cairns Pty Ltd was heard in the Federal Circuit Court of Australia. Timothy Gerard Foley brought an action against Westco Cairns Pty Ltd, a motor vehicle dealership, asserting that a motor vehicle he purchased was not of acceptable quality as guaranteed under the Australian Consumer Law. He claimed a right to reject the vehicle and seek a refund, which he had exercised within the stipulated period. Westco Cairns Pty Ltd contended that the consumer's claim was unfounded, arguing that the vehicle met the required standards and that any issues identified did not amount to a major failure.

The primary legal issues before the court were whether the motor vehicle supplied by Westco Cairns Pty Ltd to Timothy Gerard Foley was of acceptable quality, whether the failure to meet the consumer guarantee constituted a major failure, and whether the consumer had the right to reject the vehicle during the specified period for doing so. Additionally, the court had to determine whether Foley was entitled to a refund if the vehicle was found to be defective.

The court held that the motor vehicle was indeed not of acceptable quality, as it exhibited significant issues that were not disclosed by Westco Cairns Pty Ltd at the time of sale. The defects were deemed to be major failures, which entitled Foley to reject the vehicle. The court found that Foley had exercised his right to reject the vehicle within the requisite timeframe, thus validating his claim for a refund. Westco Cairns Pty Ltd was ordered to refund the purchase price of the vehicle to Foley. Furthermore, the court ruled that Westco Cairns Pty Ltd was to compensate Foley for the costs incurred in the proceedings.

The court ordered that Timothy Gerard Foley return the motor vehicle to Westco Cairns Pty Ltd within seven days. Westco Cairns Pty Ltd was directed to pay Foley the sum of $29,990 within 28 days, representing the purchase price of the vehicle. Additionally, Westco Cairns Pty Ltd was required to pay Foley $345.80 for the costs of the proceedings within the same period.

Orders

Orders of the court

1. Timothy Gerard Foley is required to return the motor vehicle the subject of these proceedings to Westco Cairns Pty Ltd within 7 days of the date of these orders.

2. Westco Cairns Pty Ltd is required to pay to Timothy Gerard Foley the amount of $29,990 within 28 days of the date of these orders.

3. Westco Cairns Pty Ltd is required to pay to Timothy Gerard Foley costs the amount of $345.80 within 28 days of the date of these orders.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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