Jakota Pty Ltd v Luatua

Jakota Pty Ltd sought leave to appeal against a decision made by an Adjudicator, which ruled in favour of the respondent, Luatua. The dispute centred around the sale of a used car, with Luatua claiming that the vehicle was not of acceptable quality as required under the Australian Consumer Law. Luatua had purchased the car from Jakota Pty Ltd, noticed defects immediately, but drove the car for 12,000 kilometres and seven months before returning it. The primary issue for the court was whether the Adjudicator's findings of fact were open on the evidence and whether there was a substantial injustice warranting an appeal.

The court considered the principles of appellate review, emphasising that it should not ordinarily interfere with findings of fact made by a primary decision-maker unless there is a substantial injustice. The court examined the evidence presented, including expert reports, to assess the condition of the car at the time of sale and whether the reported major failure could be substantiated. It was also crucial to determine whether the delay in returning the car affected the reliability of the evidence regarding its condition at the time of sale.

In allowing the appeal, the court found that the Adjudicator had not properly considered certain evidence and had made findings of fact that were not supported by the evidence. The court concluded that there was a substantial injustice, as the Adjudicator's decision did not accurately reflect the true condition of the car at the time of sale. Consequently, the Orders made on 24 January 2017 were set aside, and the application was dismissed. The appeal was allowed, and leave to appeal was granted.