Lance v Riviera Motors Pty Ltd

Tonia Lance brought an application to the Tribunal for the determination of a motor vehicle dispute against Riviera Motors Pty Ltd. Lance claimed that the Ford Transit Van she purchased from Riviera Motors had a defect unknown at the time of purchase, and she sought a refund for the cost of fitting out the van. Riviera Motors refused to provide a refund, and the Tribunal dismissed Lance's application. Lance applied for leave to appeal the decision of the Tribunal, arguing that it erred in failing to evaluate the evidence and apply the Australian Consumer Law (ACL) to the facts. The court was required to determine whether Lance was entitled to leave to appeal and, if so, whether the appeal should succeed.

The court found that the Tribunal did not adequately evaluate the evidence or apply the ACL to the facts. The court noted that the Tribunal did not consider the fact that Lance fitted out the van before the defect was identified, and it did not consider whether the failure to comply with the consumer guarantee was a major failure. The court found that Lance had rejected the motor vehicle and asked for a refund, which was refused, and that it was reasonably foreseeable that the fit out costs would be wasted expenditure if the motor vehicle was not of acceptable quality. The court found that Lance was entitled to damages for the wasted expenditure.

The court granted leave to appeal and allowed the appeal. The court ordered that Riviera Motors pay Lance the sum of $20,680.09 within twenty-eight days of the date of the decision. The court also ordered that Riviera Motors take possession of the Ford Transit Van from Lance within twenty-eight days of the date of the decision.