[2026] NSWCATAP 113
General information, not legal advice.
NCAT Appeal Panel
2026-04-10
Original judgment source is linked above.
1 The Tribunal orders that the respondent NewCastle Caravan and RV's Pty Ltd or their contractor undertake the following work to the caravan in a proper and workmanlike manner.
replace the defective flooring;
remove and reinstall the inverter and then repair or replace (whichever is necessary) the damaged wheel arch;
rectify any loose wiring located in the caravan's electrical hub;
ensure the entrance door lock latch aligns and the door can seal and shut property (sic).
2 For the purposes of facilitating order 1 above, the applicant deliver the caravan to Newcastle Caravans and RV's within 30 days from the date of these orders and thereafter, the supplier arrange for the repairs to be carried out (including by the manufacturer) and have the caravan available for collection by the applicant from the supplier's business premises, within a further 30 days from the date the applicant drops off the caravan.
(1) No claim exists under Part 5-4 of the ACL against a manufacturer for a refund of the purchase price or replacement of goods.
(2) With respect to a claim against a supplier for a refund of the purchase price where there has been a "major failure", the rejection period within which the notice of rejection must be given to the supplier ends at the time when the relevant failure to comply with the guarantee would reasonably be expected to have become apparent.
(3) The giving of a rejection notice is precluded in various circumstances, including where the goods have been "damaged" after being delivered for reasons unrelated to the relevant non-compliance with the guarantee.
(4) A consequence of giving a notice of rejection is that the goods must be returned to the supplier, except in limited circumstances.
Part 5‑4 - Remedies relating to guarantees
Division 1 - Action against suppliers
Subdivision A - Action against suppliers of goods
259 Action against suppliers of goods
(1) A consumer may take action under this section if:
(a) a person (the supplier) supplies, in trade or commerce, goods to the consumer; and
(b) a guarantee that applies to the supply under Subdivision A of Division 1 of Part 3‑2 (other than sections 58 and 59(1)) is not complied with.
(2) If the failure to comply with the guarantee can be remedied and is not a major failure:
(a) the consumer may require the supplier to remedy the failure within a reasonable time; or
(b) if such a requirement is made of the supplier but the supplier refuses or fails to comply with the requirement, or fails to comply with the requirement within a reasonable time - the consumer may:
(i) otherwise have the failure remedied and, by action against the supplier, recover all reasonable costs incurred by the consumer in having the failure so remedied; or
(ii) subject to section 262, notify the supplier that the consumer rejects the goods and of the ground or grounds for the rejection.
(3) If the failure to comply with the guarantee cannot be remedied or is a major failure, the consumer may:
(a) subject to section 262, notify the supplier that the consumer rejects the goods and of the ground or grounds for the rejection; or
(b) by action against the supplier, recover compensation for any reduction in the value of the goods below the price paid or payable by the consumer for the goods.
(4) The consumer may, by action against the supplier, recover damages for any loss or damage suffered by the consumer because of the failure to comply with the guarantee if it was reasonably foreseeable that the consumer would suffer such loss or damage as a result of such a failure.
(5) Subsection (4) does not apply if the failure to comply with the guarantee occurred only because of a cause independent of human control that occurred after the goods left the control of the supplier.
(6) To avoid doubt, subsection (4) applies in addition to subsections (2) and (3).
(7) The consumer may take action under this section whether or not the goods are in their original packaging.
260 When a failure to comply with a guarantee is a major failure
(1) A failure to comply with a guarantee referred to in section 259(1)(b) that applies to a supply of goods is a major failure if:
(a) the goods would not have been acquired by a reasonable consumer fully acquainted with the nature and extent of the failure; or
(b) the goods depart in one or more significant respects:
(i) if they were supplied by description - from that description; or
(ii) if they were supplied by reference to a sample or demonstration model - from that sample or demonstration model; or
(c) the goods are substantially unfit for a purpose for which goods of the same kind are commonly supplied and they cannot, easily and within a reasonable time, be remedied to make them fit for such a purpose; or
(d) the goods are unfit for a disclosed purpose that was made known to:
(i) the supplier of the goods; or
(ii) a person by whom any prior negotiations or arrangements in relation to the acquisition of the goods were conducted or made;
and they cannot, easily and within a reasonable time, be remedied to make them fit for such a purpose; or
(e) the goods are not of acceptable quality because they are unsafe.
(2) A failure to comply with a guarantee referred to in section 259(1)(b) that applies to a supply of goods is also a major failure if:
(a) the failure is one of 2 or more failures to comply with a guarantee referred to in section 259(1)(b) that apply to the supply; and
(b) the goods would not have been acquired by a reasonable consumer fully acquainted with the nature and extent of those failures, taken as a whole.
Note: The multiple failures do not need to relate to the same guarantee.
(3) Subsection (2) applies regardless of whether the consumer has taken action under section 259 in relation to any of the failures.
261 How suppliers may remedy a failure to comply with a guarantee
If, under section 259(2)(a), a consumer requires a supplier of goods to remedy a failure to comply with a guarantee referred to in section 259(1)(b), the supplier may comply with the requirement:
(a) if the failure relates to title - by curing any defect in title; or
(b) if the failure does not relate to title - by repairing the goods; or
(c) by replacing the goods with goods of an identical type; or
(d) by refunding:
(i) any money paid by the consumer for the goods; and
(ii) an amount that is equal to the value of any other consideration provided by the consumer for the goods.
262 When consumers are not entitled to reject goods
(1) A consumer is not entitled, under section 259, to notify a supplier of goods that the consumer rejects the goods if:
(a) the rejection period for the goods has ended; or
(b) the goods have been lost, destroyed or disposed of by the consumer; or
(c) the goods were damaged after being delivered to the consumer for reasons not related to their state or condition at the time of supply; or
(d) the goods have been attached to, or incorporated in, any real or personal property and they cannot be detached or isolated without damaging them.
(2) The rejection period for goods is the period from the time of the supply of the goods to the consumer within which it would be reasonable to expect the relevant failure to comply with a guarantee referred to in section 259(1)(b) to become apparent having regard to:
(a) the type of goods; and
(b) the use to which a consumer is likely to put them; and
(c) the length of time for which it is reasonable for them to be used; and
(d) the amount of use to which it is reasonable for them to be put before such a failure becomes apparent.
263 Consequences of rejecting goods
(1) This section applies if, under section 259, a consumer notifies a supplier of goods that the consumer rejects the goods.
(2) The consumer must return the goods to the supplier unless:
(a) the goods have already been returned to, or retrieved by, the supplier; or
(b) the goods cannot be returned, removed or transported without significant cost to the consumer because of:
(i) the nature of the failure to comply with the guarantee to which the rejection relates; or
(ii) the size or height, or method of attachment, of the goods.
(3) If subsection (2)(b) applies, the supplier must, within a reasonable time, collect the goods at the supplier's expense.
(4) The supplier must, in accordance with an election made by the consumer:
(a) refund:
(i) any money paid by the consumer for the goods; and
(ii) an amount that is equal to the value of any other consideration provided by the consumer for the goods; or
(b) replace the rejected goods with goods of the same type, and of similar value, if such goods are reasonably available to the supplier.
(5) The supplier cannot satisfy subsection (4)(a) by permitting the consumer to acquire goods from the supplier.
(6) If the property in the rejected goods had passed to the consumer before the rejection was notified, the property in those goods revests in the supplier on the notification of the rejection.
264 Replaced goods
If the goods are replaced under section 261(c) or 263(4)(b):
(a) the replacement goods are taken, for the purposes of Division 1 of Part 3‑2 and this Part, to be supplied by the supplier; and
(b) the provisions of Division 1 of Part 3‑2 and this Part apply in relation to the replacement goods.
Division 2 - Action for damages against manufacturers of goods
271 Action for damages against manufacturers of goods
(1) If:
(a) the guarantee under section 54 applies to a supply of goods to a consumer; and
(b) the guarantee is not complied with;
an affected person in relation to the goods may, by action against the manufacturer of the goods, recover damages from the manufacturer.
272 Damages that may be recovered by action against manufacturers of goods
(1) In an action for damages under this Division, an affected person in relation to goods is entitled to recover damages for:
(a) any reduction in the value of the goods, resulting from the failure to comply with the guarantee to which the action relates, below whichever of the following prices is lower:
(i) the price paid or payable by the consumer for the goods;
(ii) the average retail price of the goods at the time of supply; and
(b) any loss or damage suffered by the affected person because of the failure to comply with the guarantee to which the action relates if it was reasonably foreseeable that the affected person would suffer such loss or damage as a result of such a failure.
(2) Without limiting subsection (1)(b), the cost of inspecting and returning the goods to the manufacturer is taken to be a reasonably foreseeable loss suffered by the affected person as a result of the failure to comply with the guarantee.
(3) Subsection (1)(b) does not apply to loss or damage suffered through a reduction in the value of the goods.
(1) The appellant did not provide the supplier with a notice of rejection of the caravan until, at the earliest, when the supplier was joined to existing proceedings he had commenced against the manufacturer seeking a replacement caravan.
(2) The appellant never returned the caravan to the supplier until after the final orders were made in the primary proceedings.
(3) The appellant never claimed damages against the manufacturer.
(4) The appellant never claimed damages against the supplier until after completion of the hearings in the primary proceedings.
(5) In closing oral submissions, the appellant sought a repair order as an alternative to the claim for a refund.
13 Ultimately, if we were not in a position where we were living in the Caravan full-time and travelling full-time (the purpose for which we bought the Caravan), we would be able to return the Caravan to the First Respondent and reject it entirely. Unfortunately, to do so would put our family out of a home. This is why we have not chosen to reject the Caravan outright and are seeking a replacement Caravan.
14 Even if we were to accept the repair of the Caravan and the offer of accommodation, our family would have to stop our travel and put our life plans on hold.
The primary proceedings and the Tribunal's decision
(1) It addressed the appellant's case, including making reference to relevant correspondence between the appellant and Masterpiece Caravans and to a report on the defects in the caravan by Mr Marshall of ACE Assessing Services dated 10 April 2024.
(2) Next, the Tribunal addressed the manufacturer's case. The Tribunal noted that the manufacturer conceded a flooring defect with the caravan because of a manufacturing defect by their flooring supplier which had caused the internal floor to delaminate. The manufacturer did not accept that this was a "major failure". The Tribunal noted that the manufacturer conceded that repairing the flooring defect could not be achieved without adding additional weight to the caravan, the manufacturer could not precisely say how much weight but estimated it would be no more than 25 kg, which the manufacturer believed was reasonable and would still allow a sufficient payload for a triple bunk family caravan (at [27]). The Tribunal referred to the manufacture's contention that the appellant had caused damage to the caravan, which it listed (at [30]), and the contention that to repair the damage and restore the caravan for resale there would be a cost of $24,327.60 (at [34]). The Tribunal referred to the manufacture's contention that if it was found there was a "major failure" then the appellant was not entitled to replacement or refund in circumstances where damage had been caused and/or the consumer had not rejected the caravan in compliance with the ACL.
(3) The Tribunal referred to the supplier's case, including that it had relied upon the evidence submitted by the manufacturer (at [38]).
(4) The Tribunal then turned to a consideration of the law and facts (at [39]-68]). It set out the terms of ss 54, 260 and 262 of the ACL and made reference to s 259 (1) (b) and s259 (3) (a).
(5) The Tribunal addressed the alleged defects and concluded that the flooring defect alone gave rise to a breach of the consumer guarantee in s 54 of the ACL (at [48]). Earlier, it had concluded that it could only be satisfied of four of the alleged defects, namely the flooring, the shower drain, the entrance door, the loose wiring and inverter issues (at [42]).
(6) The Tribunal then concluded that the non-compliance with the s 54 guarantee with respect to the flooring was a major failure (at [50]-[52].
(7) As to the questions of notice of rejection and return of the goods, first, the Tribunal concluded that it was not able to find that the appellant had rejected the goods during the rejection period in compliance with the ACL (at [56]. As to this conclusion, the Tribunal concluded that the appellant had "constructively notified" the manufacturer of his desire to reject the caravan due to a major failure by email dated "5 March 2025" (plainly, an error for 5 March 2024; see email above) but "there was no evidence that the applicant notified the supplier of the same prior to commencing these proceedings in March 2024". Earlier, the Tribunal had said that "arguably" the appellant had become aware of the flooring defect in August 2023 when he emailed the supplier about it and was referred to the manufacturer to lodge a warranty claim (at [54]).
(8) We interpose hereto to note that the indication here of notice to the supplier by the proceedings in March 2024 seems to proceed from the Tribunal's mistaken understanding that in the application commencing proceedings on 26 March 2024 the appellant had named both the manufacturer and the supplier as respondents: see at [18].
(9) Furthermore, the Tribunal concluded that the appellant "had not returned the goods to the supplier in accordance with section 263 of the ACL" at ([56]).
(10) Accordingly, for these two reasons alone the Tribunal concluded that the appellant was not entitled to a replacement or refund under the ACL (at [56]).
(11) In the alternative, the Tribunal concluded that the appellant was not entitled to reject the goods because of the damage it caused to the caravan, having earlier set out the terms of s 262 concerning this issue (at [57]).
(12) The Tribunal then turned to the claim against Masterpiece Caravans as manufacturer. It noted that the remedy was limited to claiming damages under s 272 of the ACL but that the appellant had led no evidence of any such reduction in value "presumably, because compensation for any reduction in value below the purchase price is not the outcome sought by the applicant in these proceedings." Accordingly, it concluded that the only other remedies available to the appellant were against the supplier pursuant to s259 of the ACL.
(13) Having reached these conclusions concerning the relevant issues, the Tribunal returned to the question of a remedy of repair against the supplier (at [60]-[66]). As to such a claim, the Tribunal reasoned that it could make a repair order pursuant to s 79N (b) of the Fair Trading Act (NSW) 1987 (FTA). It concluded that this was the most appropriate remedy, namely to carry out the repairs necessary to remedy the defects concerning flooring, electrical wiring and to the entrance door (at [63]). It noted that although the order was to be made against the supplier it was the intention of the respondents that the manufacturer would carry out these repairs and that the caravan would need to be returned to the supplier in the first instance and then transported to the manufacturer.
(14) Finally, the Tribunal referred to a late claim by the appellant for a sum of $4,950 for accommodation expenses (at [67]-[68]). The Tribunal referred to these expenses as related to the expenses of renting a property in November 2024 for a period of nine weeks when the appellant returned to Sydney with his family and was unable to return to his own property because it had been rented out for a two year fixed. The Tribunal gave various reasons for rejecting this claim, and it was not made clear whether this was a claim against one or both of the respondents. One of the reasons for rejecting the claim was that it was a late claim for which the appellant had not sought leave to amend and there was a lack of opportunity given for it to be responded to.
The Applicant's caravan arrived to Newcastle Caravans & RVs premises on 15 December, 2025 and has been available for collection from this date, the applicant has not sought to do so or communicated that they will.
As per the hearing, we would store the caravan until such time as either the appeal process had concluded or if the applicant did seek to take possession of the vehicle but we understand they are also not ordered to do so by the Tribunal at this time.
The caravan has been repaired as per the order. The repairs were carried out by the manufacturer and First Respondent Masterpiece Caravans Pty Ltd.
The caravan remains in Newcastle Caravans & RVs possession and has been stored in our secure premises since its arrival.
In regards to the amended grounds of appeal by the applicant, it is the position of Newcastle Caravans & RVs that the law was applied correctly and fairly to the best of our knowledge.
(1) The Tribunal erred on a question of law by applying the wrong tests concerning satisfaction of the requirements of rejection and return of the goods for the purpose of a claim under the ACL for a refund of the purchase price with the consequence that, in some respects, the Tribunal failed to take into account relevant, mandatory, considerations (Ground 1).
(2) The Tribunal erred on a question of law by failing to give adequate reasons concerning the question of "damage" to the caravan in connection with the issue of rejection of the caravan (Ground 2).
(3) The Tribunal had no jurisdiction or power to make a repair order or otherwise erred in law in making any order at all for repair work to be carried out (Ground 3).
(4) By the delay in issuing the decision there was procedural unfairness to the appellant (Ground 4).
Standing and role of Masterpiece Caravans on appeal
Consideration, Ground 1-applying the wrong tests to the questions of rejection and return of the goods.
Consideration, Ground 2-inadequate reasons concerning "damage" to the caravan and the consequential impact upon the appellant's rejection right
Consideration, Ground 3-the Tribunal allegedly lacked jurisdiction or power to make a repair order pursuant to s 79N of the Fair Trading Act 1987
... Instead, repair was ordered as the only remedy, contrary to ACL ss 259(3), 260, 263 and established authority (Lam v Steve Jarvin Motors Pty Ltd [2016] NSWCATAP 186; Temple v AMR Motors Pty Ltd [2016] NSWCATAP 121).
Consideration, Ground 4 - procedural unfairness - delay in making decision
(1) The appeal is dismissed.
(2) Within 21 days of the publication of these reasons, the first respondent is to file and serve written submissions concerning its application in relation to costs of the appeal.
(3) The appellant is to file and serve written submissions in relation to the first respondent's costs submissions within 21 days of receipt of those submissions.
(4) Within 14 days of receipt of the appellant's costs submissions the first respondent is to file and serve any written submissions in reply.
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.
Stewart
Masterpiece Caravans Pty Ltd & Anor [2026] NSWCATAP 113;
(1950) 81 CLR 418