R E Phillips Nominees P/L T/A Splash Touch Free Car Wash v Hanna Wash Systems P/L

In the case of R E Phillips Nominees P/L T/A Splash Touch Free Car Wash v Hanna Wash Systems P/L, the plaintiff sought damages for the capital cost of replacing parts of the car wash machine that were not functioning correctly, as well as for past and future loss of profits due to misrepresentations regarding the Millennium being fully automatic and the cost for additional manual labour. The primary legal issues for the court to decide included whether the representations made by the defendants regarding the functionality of the Millennium were misleading, and if so, whether the plaintiff had suffered damages as a result.

The court found that the plaintiff had indeed been misled by the representations and that the Millennium could not function properly without manual assistance, both at the pre-soak stage and after the wash. The court rejected the plaintiff's vague claim for time spent working to correct the machine's failures, as it was not clear how the amount of $41,000 was quantified or whether the time spent was entirely related to rectifying problems. However, the court did find that the plaintiff had suffered damages for the breach of the implied term of the contract that the car wash machine would work properly.

Regarding the loss of profits, the court found that the evidence clearly indicated that the attraction of the car wash was the automatic aspect, and that the Millennium could not function properly without manual assistance. The court concluded that the plaintiff was entitled to compensation for the additional labour required to achieve the desired result.

The court's final orders would likely include a determination of the specific damages owed to the plaintiff, taking into account the breach of contract and the additional labour costs.