Dwyer v Volkswagen Group Australia Pty Ltd [2023] NSWCA 211

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Dwyer v Volkswagen Group Australia Pty Ltd [2023] NSWCA 211 Hearing dates: 29, 30 March 2022 Date of orders: 5 September 2023 Decision date: 05 September 2023 Before: Gleeson JA at [1] Leeming JA at [311] White JA at [312] Decision: (1) Appeal dismissed. (2) Appellant to pay the respondent's costs. Catchwords: CONSUMER LAW — Consumer guarantees — Supply of goods — Guarantee of acceptable quality — Australian Consumer Law (ACL), s 54 — Whether vehicles of acceptable quality to reasonable consumer — Whether vehicles not safe or free from defects given installation of airbags — Where asserted risk of rupture of airbags — Whether appellant established a physical feature of the airbags carried the inherent risk alleged — Where no materialisation of asserted risk within 15-year timeframes tested — Where merely speculative theoretical risk of rupture of airbags not within any meaningful timeframe — Whether unquantifiable risk unacceptable to reasonable consumer CONSUMER LAW — Enforcement and remedies — Defences — Whether assumed failure to comply with guarantee of acceptable quality "only because of" act or default of another person other than manufacturer or its employees or agents — Where third party supplier of airbags not an agent of the manufacturer — Meaning of "manufacturer" — Whether acts of "manufacturer" in choosing third party supplier, installing airbags or releasing vehicles in that state for supply disentitled the manufacturer to defence — ACL, s 271(2) CONSUMER LAW — Enforcement and remedies — Action by consumer for damages under ACL, s 271(1) — Assessment of damages under ACL, s 272(1) — Where common ground that time for assessing damages for any reduction in value of goods is time of supply — Whether subsequent events which illuminate true value of goods at time of supply should be taken into account in damages assessment — Where airbag replaced at no cost — Whether replacement of airbag should be taken into account in damages assessment assuming breach of consumer guarantee CIVIL PROCEDURE — Representative proceedings — New points on appeal — Representative party failed to plead new damages claims on behalf of group members — Whether common questions should be amended on appeal — Where no challenge to orders specifying common questions for determination at trial — Where no application to amend common questions at trial or on appeal — Effect of statutory estoppel on issues raised by common questions — Civil Procedure Act 2005 (NSW), s 179 Legislation Cited: Civil Procedure Act 2005 (NSW), Pt 10, ss 162, 179, 180 Competition and Consumer Act 2010 (Cth), Sch 2 Australian Consumer Law, ss 2, 3, 7, 54, 58, 59, 61, 259, 267, 271, 272 Explanatory Memorandum to the Trade Practices Amendment (Australian Consumer Law) Bill (No 2) 2010, pars 2.37, 7.126 Federal Court of Australia Act 1976 (Cth), Pt IVA Supreme Court Act 1970 (NSW), s 75A Supreme Court Act 1986 (Vic), Pt 4A, s 33ZB Trade Practices Act 1994 (Cth), ss 4B, 74A(4), 74D, 82 Uniform Civil Procedure Rules 2005 (NSW), r 42.1 Cases Cited: Aon Risk Services Australia Ltd v Australian National University (2000) 239 CLR 175; [2009] HCA 27 Australian Competition and Consumer Commission v Jayco Corporation Pty Ltd [2020] FCA 1672 Autodesk Inc v Dyason (No 2) (1993) 176 CLR 300; [1993] HCA 6 Baxter v Obacelo (2001) 205 CLR 635; [2001] HCA 66 BHP Group Ltd v Impiombato (2021) 286 FCR 625; [2021] FCAFC 93 Boensch v Pascoe (2019) 268 CLR 593; [2019] HCA 49 Branir Pty Ltd v Owston Nominees (No 2) Pty Ltd (2001) 117 FCR 424; [2001] FCA 1833 Capic v Ford Motor Company of Australia Pty Ltd [2021] FCA 715; (2021) 154 ACSR 235 Catalano v Managing Australia Destinations Pty Ltd [2014] FCAFC 55; (2014) 314 ALR 62 Commonwealth v Amann Aviation Pty Ltd (1991) 174 CLR 64; [1991] HCA 54 Coulton v Holcombe (1986) 162 CLR 1; [1986] HCA 33 Dwyer v Volkswagen Group Australia Pty Ltd t/as Volkswagen Australia [2021] NSWSC 715 Dwyer v Volkswagen Group Australia Pty Ltd t/as Volkswagen Australia (No 2) [2021] NSWSC 1137 Dyczynski v Gibson (2020) 280 FCR 583; [2020] FCAFC 120 Effem Foods Ltd v Nicholls [2004] NSWCA 332; (2004) ATPR 42-034 Elna Australia Pty Ltd v International Computers (Aust) Pty Ltd (No 2) (1987) 16 FCR 410 Ethicon Sàrl v Grill (2021) 288 FCR 338; [2021] FCAFC 29 Gill v Ethicon Sàrl (No 3) [2019] FCA 587; (2019) 369 ALR 175 Gould v Vaggelas (1985) 157 CLR 215; [1985] HCA 68 Henville v Walker (2001) 206 CLR 459; [2001] HCA 52 HTW Valuers (Central Qld) Pty Ltd v Astonland Pty Ltd (2004) 217 CLR 640; [2004] HCA 54 I & L Securities Pty Ltd v HTW Valuers (Brisbane) Pty Ltd (2002) 210 CLR 109; [2002] HCA 41 Jonval Builders Pty Ltd v Commissioner for Fair Trading (2020) 104 NSWLR 1; [2020] NSWCA 233 Kizbeau Pty Ltd v WG & B Pty Ltd (1995) 184 CLR 281; [1995] HCA 4 Kuru v State of New South Wales (2008) 236 CLR 1; [2008] HCA 26 Marks v GIO Australia Holdings Ltd (1998) 196 CLR 494; [1998] HCA 69 Medtel Pty Ltd v Courtney (2003) FCR 182; [2003] FCAFC 151 Metwally v University of Wollongong [1985] HCA 28; (1985) 60 ALR 68 Minister for Immigration and Border Protection v SZVFW (2018) 264 CLR 541; [2018] HCA 30 Paino v Paino [2008] NSWCA 276 Moore v Scenic Tours Pty Ltd (2020) 268 CLR 326; [2020] HCA 17 Multicon Engineering Pty Ltd v Federal Airports Corporation (1997) 47 NSWLR 631 Murphy v Overton Investments Pty Ltd (2004) 216 CLR 388; [2004] HCA 3 Placer (Granny Smith) Pty Ltd v Thiess Contractors Pty Ltd [2003] HCA 10; (2003) 196 ALR 257 Potts v Miller (1940) 64 CLR 282; [1940] HCA 43 Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355; [1998] HCA 28 Protec Pacific Pty Ltd v Steuler Services GmbH & Co KG [2014] VSCA 338 Registrar of Titles (WA) v Franzon (1975) 132 CLR 611; [1975] HCA 41 Republic of Croatia v Sneddon (2010) 241 CLR 461; [2010] HCA 14 R v Khazaal (2012) 246 CLR 601; [2012] HCA 26 Scenic Tours Pty Ltd v Moore [2018] NSWCA 238; (2018) 361 ALR 456 Scenic Tours Pty Ltd v Moore [2023] NSWCA 74 Searle v The Commonwealth (2019) 100 NSWLR 55; [2019] NSWCA 127 Sun v Chapman [2022] NSWCA 132 Suttor v Gundowda Pty Ltd (1950) 81 CLR 418; [1950] HCA 35 Takata Airbags Class Action – Common Questions [2018] NSWSC 1868 TAL Life Ltd v Shuetrim; Metlife Insurance Ltd v Shuetrim (2016) 91 NSWLR 439; [2016] NSWCA 68 The King v Jacobs Group (Australia) Pty Ltd (formerly known as Sinclair Knight Merz) [2023] HCA 23 Timbercorp Finance Pty Ltd (in liquidation) v Collins (2016) 259 CLR 212; [206] HCA 44 Toyota Motor Corporation Australia Ltd v Williams [2023] FCAFC 50; (2023) 408 ALR 582 Vautin v By Winddown, Inc (formerly Bertram Yachts) (No 4) [2018] FCA 426; (2018) 362 ALR 702 Warren v Coombes (1979) 142 CLR 531; [1979] HCA 9 Water Board v Moustakas (1988) 180 CLR 491; [1988] HCA 12 Waters v Public Transport Commission (1991) 173 CLR 349; [1991] HCA 49 Williams v Toyota Motor Corporation Australia Ltd (Initial Trial) [2022] FCA 344 Category: Principal judgment Parties: Philip Dwyer (Appellant) Volkswagen Group Australia Pty Ltd t/as Volkswagen Australia (Respondent) Representation: Counsel: C R C Newlinds SC / D Barnett (Appellant) S J Free SC / I Ahmed / C Winnett (Respondent)