CTHFCA
Capic v Ford Motor Company of Australia Limited
[2016] FCA 1020
Federal Court of Australia|2016-08-24|Before: Dr P, Mr P, Perram J
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Source factsCourt
Federal Court of Australia
Decision date
2016-08-24
Before
Dr P, Mr P, Perram J
Source
Original judgment source is linked above.
Judgment (7 paragraphs)
[1]
- The interlocutory application be dismissed.
- The lead applicant pay the respondent's costs. Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
[2]
- Introduction 1 This case is a class action. The lead applicant, by her lawyers, seeks inter alia orders restraining the respondent from communicating offers of settlement to group members. For the reasons which follow, the application will be dismissed with costs.
[3]
- The Proceeding 2 The lead applicant acquired a Ford Focus on 24 December 2012 from a Ford dealer by means of a novated lease. It is alleged by her that the respondent, the Ford Motor Company of Australia Limited ('Ford'), has imported, sold, supplied and distributed a range of specifically identified models of the Ford Focus, Ford Fiesta and Ford EcoSport. The gravamen of the group claim is that the vehicles in question all share an automatic transmission ('the PowerShift transmission') which is defective. The difficulties allegedly exhibited include excessive transmission clutch shudder during light acceleration, delayed or harsh gear shifts, loss of transmission gear engagement while driving and sudden loss of power. This is not, I should note, an exhaustive list of the difficulties alleged. 3 The formal structure of the group's claims is twofold. First, it is said that the vehicles have been supplied in breach of a statutory guarantee under the Australian Consumer Law ('the ACL'). Secondly, it is said that promotional literature distributed by Ford about the PowerShift transmission failed to mention the existence of the alleged problems and was misleading and deceptive. The relief claimed in the originating application is a refund of the purchase price of each vehicle, alternatively damages reflecting the diminution in the value of the vehicles caused by the defect, and aggravated damages. Before me the claim for aggravated damages was explained as resting on the proposition that the difficulty with the PowerShift transmission was known in the United States before sales in this country began. 4 The class action was commenced in this Court on 17 May 2016. There is presently no litigation funder. The solicitors with the conduct of the case are a firm trading under the name Bannister Law. Bannister Law maintains a website with the address . Persons visiting that website may register with it and if they do so they then may, but are not obliged to, enter into a fee agreement with Bannister Law. At present, it appears that this retainer is on a no-win no-fee basis. As at 24 June 2016, there had been 3,462 people who had registered on the website. By 27 July 2016, some 2,001 people had entered into retainers with Bannister Law. Ms Chapman, the solicitor with the conduct of the litigation for the lead applicant, estimated that there were presently around ten new registrations per day coming through the website. 5 Of course, Bannister Law is not the only entity which has been contacted by purchasers of the allegedly defective vehicles. Many have, unsurprisingly, approached Ford or its dealers. Some of these contacts have been initiated by way of telephone, others in writing. In some cases, Ford has, after a degree of to-ing and fro-ing, eventually communicated offers to some vehicle owners either to buy back, on various terms, the vehicle in question or, in other cases, to allow the vehicle to be traded in to assist with the purchase of a new vehicle. These various offers have also included proposed releases of the owners' rights together with confidentiality clauses. Where a trade-in to a newer model has been offered, this has required the payment by the vehicle owner of some additional money. This was said in the lead applicant's submissions to mean that such a vehicle owner was out of pocket in the amount of this additional cost. There is no need to assess the correctness of this proposition at this stage although, at first blush, it appears to put at nought the higher value of the new vehicle. 6 For the purposes of these reasons, it is convenient to assume that the proposed releases are legally sufficient to release any rights which a vehicle owner might have against Ford in the class action. This was certainly Ford's position on the present application. Dr Cashman, for the lead applicant, submitted that there might well be arguments available that such a release was not effective, but he did not seek to develop this aspect of the matter as providing a basis for the relief which he sought. 7 Obviously enough, as individuals settle with Ford or its dealers and give releases, this will reduce the size of the class. 8 The lead applicant now seeks by interlocutory application to restrain Ford from: (a) communicating in respect of the allegedly defective vehicles with group members who are clients of Bannister Law; (b) sending letters to group members of the kind Ford has in fact been sending; and (c) communicating with group members other than in accordance with a detailed protocol attached to the interlocutory application.