Vautin v BY Winddown, Inc
Facts
- 74 feet long recreational fishing vessel bought in 2011;
- Eagle Yachts Pty Ltd sold vessel and Bertram Yachts Inc made vessel;
- vessel was defective due to manufacturing process causing delamination and lack of seaworthiness;
- proceedings against Seller and manufacturer under Australian Consumer Law (ACL) (Schedule 2 to the Competition and Consumer Act 2010 (Cth));
- purchaser disclosed the purpose of the vessel was to fish in the open seas, and the seller represented the vessel as suitable;
- purchaser subsequently notified seller (and manufacturer);
- manufacturer went “quiet” and did not fulfil warranty obligations;
- subsequently the vessel was rejected, under ss54 (1) (i.e. acceptable quality) and 55 (1) (i.e. guarantee as to fitness for any disclosed purpose) of the ACL.
Issues
- the nature and extent of the defects;
- how the defect should be characterised under the ACL.
Judgement
- construction of the vessel did not comply with the applicable ISO standard;
- seller and manufacturer did not identify any standard with which the vessel had complied;
- method of construction was poor boatbuilding practice;
- seller and manufacturer argued that the vessel could be repaired whereas the purchaser disputed that;
- vessel was not of acceptable quality;
- vessel did not comply with the guarantee regarding fitness of a disclosed purpose;
- purchaser was entitled to reject the vessel, and additionally claimed damages.
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