Prestige Auto Traders Australia Ltd v Bonnefin

Prestige Auto Traders Australia Ltd (the appellant) brought an appeal against the decision of the Local Court (the respondent) which was that the respondent had rejected goods on the basis of a major failure and was entitled to a refund. The respondent, Bonnefin, had purchased a car from the appellant and later sought a refund, claiming the vehicle was defective. The appellant argued that the respondent was precluded from relying on the inability to remedy the goods as grounds for rejecting the goods because the respondent had failed to plead that ground in its statement of claim. The appellant also argued that the Local Court had erred in directing itself as to the test for a "major failure" and that there was no evidence to support certain findings made by the Local Court.

The court considered whether the Local Court had erred in failing to address in its reasons that the respondent was precluded from relying on the inability to remedy the goods as grounds for rejecting the goods. The court held that the respondent had not pleaded that ground in its statement of claim and therefore was precluded from relying on it. However, the court found that this did not affect the outcome of the case as the respondent had still established a major failure in the goods. The court also considered whether the Local Court had erred in directing itself as to the test for a "major failure". The court found that the Local Court had applied the correct test and had made findings supported by the evidence. Finally, the court considered whether there was no evidence to support certain findings made by the Local Court. The court found that there was evidence to support the findings made by the Local Court.

The appeal was dismissed. The court held that the Local Court had not erred in its reasons and that the findings made by the Local Court were supported by the evidence. The court found that the respondent had established a major failure in the goods and was therefore entitled to a refund.