O'HAGAN v Classic Cars Australia Pty Ltd

In *O'Hagan v Classic Cars Australia Pty Ltd*, the applicant, Mr O'Hagan, brought proceedings against the respondent, Classic Cars Australia Pty Ltd, alleging misleading or deceptive conduct in relation to the sale of a motor vehicle. The dispute arose from representations made by the respondent concerning the vehicle's condition, driving performance, and odometer reading, which Mr O'Hagan relied upon when purchasing the vehicle sight unseen. Further issues arose regarding the vehicle's roadworthiness and the respondent's failure to provide a roadworthiness certificate.

The court was required to determine whether the representations made by Classic Cars Australia Pty Ltd regarding the vehicle's low mileage and roadworthiness constituted misleading or deceptive conduct under section 18 of the Australian Consumer Law. The court also had to consider whether Mr O'Hagan relied on these representations and, in light of the vehicle's actual condition and the delay in bringing the proceedings, whether the contract should be voided ab initio or if damages were an appropriate remedy. The assessment of damages also involved resolving differing expert opinions on the vehicle's true mileage and the cost of rectifying its roadworthiness issues.

Judge Raphael found that the respondent's conduct was misleading and deceptive, particularly concerning the representations about the vehicle's mileage and roadworthiness. The court accepted that Mr O'Hagan relied on these representations when entering into the contract. Despite the delay in commencing proceedings and the differing expert evidence, the court determined that damages were the appropriate remedy. The court ordered the respondent to pay damages of $11,500.00, plus interest of $329.39, and to cover the applicant's costs at 80% of the Federal Court rates.