[2025] FCA 670
General information, not legal advice.
Federal Court of Australia
2025-06-20
Mr J, Perram J
Original judgment source is linked above.
Ms W Harris KC and Mr M Costello KC with Mr J Waller
FORD MOTOR COMPANY OF AUSTRALIA PTY LTD ACN 004 116 223
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
(a) input shaft seals,
(b) the clutch lining,
(c) the transmission control module ('TCM') and
(d) the rear main oil seal.
(e) inadequate management of torsional vibrations and
(f) inadequate management of heat.
A more defective vehicle than originally assessed?
The relevance of repairs to reduction in value damages
The resolution of this dispute flows from the conclusion that later acquired knowledge of the capacity to repair a defect (including a hidden defect) or ameliorate its consequences as well as when, how and at what cost those repairs or ameliorative steps would be undertaken cannot be divorced from any analysis of what constitutes the relevant "defect". Upon being informed that particular goods had a defect that carried a particular propensity to cause the goods to perform sub-optimally, a hypothetical reasonable consumer acquiring such goods could be expected to inquire whether the defect could be remedied and, if so, the effectiveness, cost, inconvenience and timing of a repair. If that information was known at the time of trial and not brought to account at the time of supply, then there would truly be a risk of the consumer receiving more or less than could be justified on the basis of the facts then known. A consumer would receive less if the court awarded damages on a flawed understanding that, at the time of supply, repair of such defects at a moderate cost was possible when subsequent events revealed the defects were in fact unfixable and would receive more if subsequent events demonstrated that the defects could be fixed quickly at no cost.
The actual repair trajectory of Ms Capic's vehicle and her negative experiences
(a) the component deficiency of the clutch lining material;
(b) the architectural deficiency of inadequate management of torsional vibration which at slow speeds carries a risk of gear rattling and light shuddering;
(c) the architectural deficiency of inadequate heat management. However, apart from (d) (below) this did not give rise to any independent risk of symptoms in addition to those already posed by the component deficiencies.
(d) The superadded propensity that (a) would result in a wider range of symptoms because of (b) and (c).
Giving value to the hypothetical repair trajectory
273 Time limit for actions against manufacturers of goods
An affected person may commence an action for damages under this Division at any time within 3 years after the day on which the affected person first became aware, or ought reasonably to have become aware, that the guarantee to which the action relates has not been complied with.
I certify that the preceding sixty-nine (69) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justice Perram.
Capic
Ford Motor Company of Australia Pty Ltd