[2025] NSWCATAP 152
General information, not legal advice.
NCAT Appeal Panel
2025-06-26
A Bell SC, Senior MemberM Deane, Senior Member
Original judgment source is linked above.
(1) The application for compensation due to a breach of the Australian Consumer Laws is dismissed after hearing.
Proceedings in the Consumer and Commercial Division
(1) the Tribunal overlooked the fact that the diesel removed from the vehicle did not smell right/could be contaminated and a sample was kept for diagnosis
(2) The Tribunal also overlooked the diagnosis result which was obtained from the sample received.
(1) the decision was not fair and equitable;
(2) the decision was against the weight of evidence; and
(3) Significant new evidence is now available that was not reasonably available at the time of the hearing.
(1) invoices from Cambelltown District Towing to show that the vehicle had been towed from an address in Campbelltown to Bradbury Mechanics on 22 February 2023 and from Bradbury Automotive to Sydney Diesel Centre on 1 March 2023;
(2) A tax invoice from Bradbury Automotive dated 23 February 2023 which set out the following work:
1 Vehicle towed in customer said running rough blowing smoke then stopped working
1 remove all fuel from tank and filter. Replace fresh diesel recommend diesel specialist possible injector pump problem.
1 Recommend Sydney Diesel Centre ...
1 Ran diagnostic scan found codes ... Pressure regulator exceed control limits pressure low fluid level
1 check fuel smells not right could be contaminated keep sample
(3) A letter from Bradbury Automotive attached to an email dated 23 May 2024 which set out:
Your Ford Ranger; Registration number [...] was towed into our workshop on the 22/02/2023. You notified us that your vehicle was running rough, blowing smoke and vehicle stopped and would not start.
Upon investigation we found that the fuel was contaminated. Drained ¾ of fuel from the fuel tank, flushed fuel lines and replaced fuel filter. With carrying out this work we were still unable to start vehicle. We notified you to advise that the vehicle would need to be taken to Sydney Diesel Centre .... We gave you a fuel sample and advised Sydney Diesel of the issues the vehicle had.
The vehicle was towed out of our workshop and taken directly to Sydney Diesel where they carried out further repairs.
(4) The Sydney Diesel Centre certificate of analysis dated 14 March 2023 for a fuel sample received on 6 March 2023 with the following diagnosis:
DIAGNOSIS:
Results were obtained on the sample as received. Appearance of sample fails due to haziness with both visible particulate contamination and visible free water present. Cleanliness rating (ISO4406) exceeds the Worldwide Fuel Charter Recommendation of 18/16/13. Water content exceeds industry standard specification of 200 ppm max for diesel fuel. All other results applicable to Australian Fuel Quality Standards Act 2019 for Automotive Diesel Fuel are within specified limits. Action: recommend filtering/polishing fuel to remove contaminants.
(5) The Sydney Diesel Centre invoice dated 17 March 2023 which included the following comments:
Comments: the customer booked in for repairs to the fuel system caused by contaminated fuel this had been checked and determined by another mechanic. When the vehicle was towed in the engine was not starting and the tow driver showed us that there was diesel fuel spilled from the vehicle onto the deck of his tilt tray.
The customer advised that the engine had started idling rough and started blowing smoke then cut out. The vehicle was towed to a repairer and they found contaminated fuel - water found in the fuel. The customer wants the fuel system repaired properly so we advised to remove and clean the fuel tank, fit a new in tank pump, flush the fuel lines, replace the fuel filter pump, rail & injectors and associated single use only parts. The customer also requested that we send a fuel sample for analysis and report so this price is also included. ...
(6) A letter from Sydney Diesel Centre dated 27 August 2023 (the Sydney Diesel Centre letter), which was stated to be further evidence to show that the tested diesel originated from the fuel purchased at Metro Appin. This letter sets out:
On our invoice ... dated 17/3/2023 it was noted that the customer requested that we send a fuel sample for analysis and report, which we have provided. Due to the time that has lapsed since this task was carried out, and that I was not personally involved with the job, nobody could recall if we took the sample of fuel from the fuel filter or just used the sample provided by the customer.
I discussed the situation with our head technician and our normal practice would be to obtain a fuel sample from the fuel filter, unless there was a sample already provided by the customer which we would then use to get tested.
As noted on our invoice "the customer advised that the engine had started idling rough and started blowing smoke then cut out. The vehicle was towed to a repairer, and they found contaminated fuel-water found in the fuel."
Sydney Diesel Centre replaced all the fuel injection components and high pressure lines due to rust found inside these components.
(7) The results from the insurer's inspection of the vehicle dated 17 June 2024 which relevantly set out:
I have been advised that fuel system damages have been reported to have had been obtained to motor vehicle registered number [...] on the 22.02.2023 and asked to prepare a desktop assessment report based on my findings.
VEHICLE DESCRIPTION
The vehicle is a white 2012 ford ranger xl 3.2 (4X4) PX, Dual cabin utility.
DESCRIPTION OF THE LOSS:
As per the information provided, we understand that on the 19.02.2023, the third parties vehicle has been filled with 74.7 litres of diesel fuel from the insured's service station (Metro Petroleum Appin).
Specific vehicle tank capacity = 80litres. (5.3 litres/6.6% residue still in the tank from a previous fill).
On the 22.2.23, 3 days after the refill the third parties vehicle has reportedly broken down, noting rough running symptoms, blowing smoke & eventually would not start. The vehicle has then been towed to Bradbury automotive for diagnosis.
Bradbury automotive has diagnosed the vehicle to have had contaminated diesel fuel inside the fuel tank, then drained the fuel and taken a sample for testing. The vehicle has then been towed to the specialist fuel system repairer, Sydney diesel centre for the damaged fuel system to be reviewed & repaired.
The contaminated fuel sample results from ALS on the 14.3.2023, show a significant amount of water within the sample given. Moisture/water content = 6,284 ppm (parts per million) (31 times more than the acceptable maximum Australian standard of200 ppm water content mixed within diesel fuel for suitable use)
As a result, the Third party's vehicle has noted to have suffered resulting damages, from the usage of contaminated diesel fuel.
PLEASE NOTE: The information provided to our office, has noted that the insured performs deep test reports on a daily basis to the onsite fuel tanks.
Based on the insureds records, the tanks were inspected on the 18th, 19th & 20th February 2023, indicating that there was no water found in the specific tank.
The insured has reportedly sold a total of 12,731.22 litres of diesel on the same date of the incident (22.02.2023) and has not received any other complaints, apart from the utilised volume of 74.7 litres, which was sold to the third party.
It cannot be confirmed where the reported contamination of the third party's diesel fuel tank has originated, as there is currently no evidence to suggest that the diesel fuel that was purchased from the insured on the 22.2.2023 was in fact contaminated with water. Also noting the unknown distance (klms) the third parties vehicle has actually driven within the three day period since the purchase date, as to whether the insureds fuel supplied, was in fact the last time the vehicles fuel tank was filled or not.
However, due to the high amount of water noted in the sample & on the balance of probability, the last time the vehicle was filled with diesel fuel before the incident date, water ingress appears to have occurred, which has most likely caused the reported damage is to occur.
We leave this for your consideration.
(8) Also attached to the insurer's report was a monthly statistical inventory reconciliation report for the months of January, February and March 2023 showing that all tanks at the respondent's premises had obtained a pass result in those months.
(1) the appellant had not presented any new or compelling evidence that was not available at the original hearing;
(2) there were discrepancies regarding the handling, storage and origin of the fuel sample;
(3) the vehicle was a 2012 model with approximately 250,000 km on the odometer. The age and mileage of the vehicle suggested issues could be due to factors other than fuel contamination;
(4) the respondent had performed daily deep test reports. The tanks were inspected on 18, 19 and 20 February 2023 indicating that there was no water found in the tank;
(5) there had been no other fuel contamination complaints at Metro Petrol Appin since July 2020.
(1) there was no clear documentary evidence or other evidence indicating how the diesel sample was held stored or transported;
(2) the certificate of analysis from Sydney Diesel Centre showed that the sample was taken on 3 March 2023 and received on 6 March 2023. Given that Bradbury automotive had already removed all diesel from the tank, this raised questions about the origin of the sample tested;
(3) the diagnosis result obtained from the sample received by Sydney Diesel Centre on 6 March 2023 indicated potential contamination. However:
(a) the Sydney Diesel Centre's letter of August 2023 stated they were unsure about the sample's origin;
(b) the vehicle is a 2012 model with approximately 250,000 km on the odometer which might contribute to mechanical issues;
(c) the respondent had conducted daily deep tests;
(d) there were no other complaints regarding fuel contamination at metro appliances by 2020.
(1) Correspondence from the insurer dated 14 June 2023 setting out:
From our investigations, we have determined that our client performs deep test reports on a daily basis. Based on their records, the tanks were inspected on 18, 19, 20 February 2023, indicating that there was no water found in the tank.
Furthermore our insured sold a total of 12,731.22 litres on the same date of the incident and we have not received any complaints apart from yours.
In light of the above, and on a balance of probability basis, we deny liability for your claim.
Whilst we regret that this unfortunate incident occurred, we suggest that you refer this matter to your comprehensive motor vehicle insurer for consideration, if applicable. ...
(2) The respondent's Daily Fuel Control Worksheets for 18, 19 and 20 February 2023.
(1) the decision of the Tribunal under appeal was not fair and equitable; or
(2) the decision of the Tribunal under appeal was against the weight of evidence; or
(3) significant new evidence has arisen (being evidence that was not reasonably available at the time the proceedings under appeal were being dealt with).
... where there was a "significant possibility" or a "chance which was fairly open" that a different and more favourable result would have been achieved for the appellant had the relevant circumstance in para (a) or (b) not occurred or if the fresh evidence under para (c) had been before the Tribunal at first instance.
(2) Ordinarily it is appropriate to grant leave to appeal, only in matters that involve:
(a) issues of principle; or
(b) questions of public importance or matters of administration or policy which might have general application; or
(c) an injustice which is reasonably clear, in the sense of going beyond merely what is arguable, or an error that is plain and readily apparent which is central to the Tribunal's decision and not merely peripheral, so that it would be unjust to allow the finding to stand; or
(d) a factual error that was unreasonably arrived at and clearly mistaken; or
(e) the Tribunal having gone about the fact-finding process in such an unorthodox manner or in such a way that it was likely to produce an unfair result so that it would be in the interests of justice for it to be reviewed.
Has significant new evidence become available that was not reasonably available at the time of the hearing?
108. The appellant also relied upon the ground in cl 12(1)(c) of Schedule 4 to the Act. Under cl 12(1)(c) the Appeal Panel may grant leave if it is satisfied that the appellant may have suffered a substantial miscarriage of justice because:
significant new evidence has arisen (being evidence that was not reasonably available at the time the proceedings under appeal were being dealt with).
109. In order to fall within this paragraph the appellant must be able to point to evidence which:
(1) is significant; and
(2) has arisen and is new in the sense that it was not reasonably available at the time the proceedings below were being heard.
... The point of limiting fresh evidence to that which was not reasonably available at the first hearing is to ensure finality of proceedings. This means that it is in the interests of justice for parties to put forward all their evidence as best they can at the hearing, as otherwise, if they were free to add fresh evidence after a case was decided, the proceedings would run the risk of not being finalised until after many hearings. This principle is of particular importance in the Tribunal because of the provisions of s 36 of the Act. That section requires the Tribunal to proceed to decide cases justly, quickly and cheaply.
Has the appellant established that the decision was not fair and equitable?
... that whether a decision was not fair and equitable will involve a consideration of whether there has been an unfairness in the way the proceedings have been conducted or some other denial of procedural fairness.
The decision under appeal can be said to be "against the weight of evidence" (which is an expression also used to describe a ground upon which a jury verdict can be set aside) where the evidence in its totality preponderates so strongly against the conclusion found by the tribunal at first instance that it can be said that the conclusion was not one that a reasonable tribunal member could reach.
(1) Leave to appeal is refused.
(2) The appeal is dismissed.
I hereby certify that this is a true and accurate record of the reasons for decision of the Civil and Administrative Tribunal of New South Wales.
Georgiades
Indaus Ventures Pty Ltd [2025] NSWCATAP 152
(2022) 275 CLR 582
(2003) 77 ALJR 1088