Vautin v BY Winddown, Inc. (formerly Bertram Yachts) (No 4) [2018] FCA 426

FEDERAL COURT OF AUSTRALIA

Vautin v BY Winddown, Inc. (formerly Bertram Yachts) (No 4) [2018] FCA 426 File number(s): NSD 546 of 2016

Judge(s): DERRINGTON J

Date of judgment: 10 April 2018

Catchwords: CONSUMER LAW - Sale of goods – Acceptable quality – Motor vessel – Defective construction of hull and superstructure – Goods with latent risk not of an acceptable quality CONSUMER LAW - Sale of goods – Acceptable quality – Right to reject – Whether rejection period expired – Whether nature and extent of breach of warranty had become "apparent" – Complexity of nature of defect CONSUMER LAW - Sale of goods – Fitness for purpose – Defects generating risk in the use of a vessel – Not fit for purpose CONSUMER LAW - Sale of goods – Manufacturer's warranty – Statutory guarantee – Non-compliance DAMAGES – Value of vessel at date of supply – Adequacy of evidence – Sale price less cost of repairs DAMAGES – Loss of use of a vessel as part of general damages – Measure of loss – Rate of depreciation whilst vessel not able to be used

Legislation: Competition and Consumer Act 2010 (Cth) Competition and Consumer Act 2010 (Cth) Sch 2 (Australian Consumer Law) Trade Practices Act 1974 (Cth) Consumer Guarantees Act 1993 (NZ)

Cases cited: Admiralty Commissioners v SS Chekiang [1926] AC 637 Admiralty Commissioners v SS Susquehanna [1926] AC 655 Alexander v Perpetual Trustees WA Ltd (2004) 216 CLR 109 Anthanasopoulos v Moseley (2001) 52 NSWLR 262 Apollo Shower Screens Pty Ltd v Building and Construction Industry Long Service Payments Corp [1985] 1 NSWLR 561 APS Satellite Pty Ltd (formerly known as "Sky Mesh Pty Ltd") v Ipstar Australia Pty Ltd [2016] NSWSC 1898 Australian Competition and Consumer Commission v Valve Corp (No 3) (2016) 337 ALR 647 Awad v Twin Creeks Properties Pty Ltd [2012] NSWCA 200 Baltic Shipping Co v Dillon (1993) 176 CLR 344 Baxter v Obacelo Pty Ltd (2001) 205 CLR 635 Blatch v Archer (1774) 1 Cowp 63 Bray v F Hoffman-La Roche Ltd (2002) 118 FCR 1 BY Winddown Inc v Vautin (2016) 249 FCR 262 Consort Express Lines Ltd v J-Mac Pty Ltd (No 2) (2006) 232 ALR 341 Currie v Dempsey (1967) 69 SR (NSW) 116 Deal v Father Pius Kodakkathanath (2016) 258 CLR 281 Devenish v Jewel Food Stores Pty Ltd (1991) 172 CLR 32 Dimond v Lovell [2002] 1 AC 384 Distillers Co (Bio-chemicals) Ltd v Thompson [1971] AC 458 Dow Jones & Co Inc v Gutnick (2002) 210 CLR 575 Ferraro v DBN Holdings Aust Pty Ltd [2015] FCAA 1127 Fink v Fink (1946) 74 CLR 127 George Zaravinos v Dairy Farmers Co-operative Ltd (1985) 7 FCR 195 Hope v Bathurst City Council (1980) 144 CLR 1 Jackson v Spittall (1870) LR5CP 542 Jones v Dunkel (1959) 101 CLR 298 Leeks v FXC Corporation (2002) 118 FCR 299 Luckins (Receiver and Manager of Australia Trailways Pty Ltd) v Highway Motel (Carnarvon) Pty Ltd (1975) 133 CLR 164 McGowan v Hills Ltd [2015] VSC 674 Medtel Pty Ltd v Courtney (2003) 130 FCR 182 Merck Sharp & Dohme (Australia) Pty Ltd v Peterson (2011) 196 FCR 145 Meyer Heine Pty Ltd v The China Navigation Co Ltd (1966) 115 CLR 10 Murray's Transport NSW Pty Ltd v CGU Insurance Ltd (2013) 118 SASR 11 Nesbit v Porter [2000] 2 NZLR 465 Owners of the Steamship "Mediana" v Owners, Master & Crew of Lightship "Comet" ("The Mediana") [1900] AC 113 Paper Products Pty Ltd v Tomlinsons (Rochdale) Ltd (No 2) (1993) 44 FCR 485 Prestige Auto Traders Australia Ltd v Bonnefin [2017] NSWSC 149 Protec Pacific Pty Ltd v Steuler Services GmBH & Co KG [2014] VSCA 338 Reg v Jameson [1896] 2 QB 425 Spittles v Michaels' Appliance Services Pty Ltd (2008) 71 NSWLR 115 Stone v Chappel (2017) 128 SASR 165 The Hebridean Coast [1961] AC 545 Vautin v BY Winddown Inc (No 2) [2016] FCA 1235 Voth v Manildra Flour Mills Pty Ltd (1990) 171 CLR 538 Yates v Mobile Marine Repairs Pty Ltd [2007] NSWSC 1463