Holt-Lea v O'Connor & Anor - [2022] QCAT 363

QUEENSLAND CIVIL AND
ADMINISTRATIVE TRIBUNAL

CITATION:

Holt-Lea v O’Connor & Anor [2022] QCAT 363

PARTIES:

cody holt-lea

(applicant)

v

karin O’Connor

(respondent)

wayne O’connor

(respondent)

APPLICATION NO/S:

MVL263-21

MATTER TYPE:

Motor vehicle matter

DELIVERED ON:

14 October 2022

HEARING DATE:

4 August 2022

HEARD AT:

Brisbane

DECISION OF:

Member Howe

ORDERS:

Application 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 – where the applicant purchased a motor vehicle – where the applicant initially experienced no difficulties with the motor vehicle – where subsequently the vehicle used excessive amounts of oil – where the applicant was advised to potential problem in the vehicle associated with smoke and the excessive oil consumption – where the evidence failed to establish a defect with the vehicle as at time of sale

Competition and Consumer Act 2010 (Cth), Schedule 2,
s 54

Williams v Toyota Motor Corporation Australia Limited (initial trial) [2022] FCA 344

APPEARANCES & REPRESENTATION:

Applicant:

Represented by L Holt

Respondents:

Self-represented

REASONS FOR DECISION

Mr Holt purchased a 2004 Nissan Maxima sedan from the respondent dealers, trading as Karway Auto Wholesale, on 22 March 2021 for $8,000. It had travelled 115,829 kms as at date of sale.
The car started to use excessive oil and around 13 October 2021 Mr Holt took it to Tanzer’s Autocare Yeppoon for inspection. That workshop found a suspected piston ring failure linked with the excessive oil use and observable emission of smoke. At the time of inspection the vehicle had travelled 122,459 kms, meaning the vehicle had travelled 6,630 km over a period nearing 7 months from time of purchase.
The workshop made comment that it appeared a replacement radiator had been fitted, there were signs of sealant and the replacement radiator was not aligned with the original seals, all of which suggested the vehicle may have previously, at some time, overheated and oil was bypassing the piston rings.
Mr Holt asked the respondents to refund him the purchase price or supply him with another car, but they refused.
He commenced proceedings in the Tribunal claiming return of the purchase price.
The applicant did not appear at hearing, but rather his mother did on his behalf. She was granted leave to represent her son. The O’Connors did not object.
Mrs Holt said that as at date of hearing the vehicle was still running, still being driven, but was blowing smoke. She suggested the vehicle had a blown head gasket. It was using a lot of oil. She said she was told by Tanzer’s Autocare Yeppoon that the motor had been “cooked”. Mrs Holt said she did not know what the odometer showed as at date of hearing. She said the car could blow up at any time.
Mrs Holt relied on a short report to be found in an invoice from Tanzer’s Autocare Yeppoon after that workshop had worked on the car on 13 October…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2022] QCAT 363
Decision Date

CaseChat Overview and Summary

Cody Holt-Lea purchased a 2004 Nissan Maxima sedan from Karin and Wayne O'Connor for $8,000 on 22 March 2021. Shortly after the purchase, the vehicle began to exhibit issues with excessive oil consumption and smoke emissions. Holt-Lea sought a refund or replacement vehicle from the O'Connors, who refused. Holt-Lea commenced proceedings in the Queensland Civil and Administrative Tribunal (QCAT) seeking a refund of the purchase price. The O'Connors did not appear at the hearing, and Holt-Lea was represented by his mother, L Holt. The central issue was whether the vehicle had a defect at the time of sale, which would entitle Holt-Lea to a refund under the guarantee of acceptable quality under the Australian Consumer Law (ACL).

The court considered the evidence presented regarding the condition of the vehicle at the time of purchase and the subsequent development of the defect. Evidence from Tanzer's Autocare Yeppoon suggested that the vehicle had overheated in the past, leading to potential damage such as a blown head gasket. However, the evidence did not conclusively establish that the defect was present at the time of sale. The court also noted that Holt-Lea did not raise concerns about the vehicle's condition until several months after purchase. The court held that the applicant bore the burden of proving the existence of the defect at the time of sale, a burden he had failed to meet.

The court concluded that while the vehicle did have a defect when inspected on 13 October 2021, there was insufficient evidence to establish that the defect existed at the time of sale. The applicant's claim for a refund was dismissed.

Orders