Williams v Toyota Motor Corporation Australia Limited [2024] HCA 38

Williams v Toyota Motor Corporation Australia Limited [2024] HCA 38

Damages for reduction in value under s 272(1)(a) of the Australian Consumer Law are to be assessed by reference to the reduction in the value of the goods at the time of supply to the consumer, taking into account all information about the defect and its repairability known at the time of trial as part of the state and condition of the goods at supply; the later development or availability of a repair, its timing, effectiveness, and inconvenience are relevant to that assessment, but the assessment is not altered to avoid so-called over-compensation or by only considering ongoing reduction in value at the time of trial.

Parties
Appellant/respondent: Kenneth John Williams & Anor; Respondent/appellant: Toyota Motor Corporation Australia Limited
Jurisdiction
Australia
Judgment Date
06 November 2024
Procedural Posture
Appeal / High Court of Australia Final Judgment
Outcome
Williams (S157/2023) appeal allowed; Toyota (S155/2023) appeal dismissed.
Legal Topics
Australian Consumer Law, Damages Assessment, Consumer Guarantees, Defective Products, Remedies Against Manufacturers
Consumer Law Damages Product Liability Australian Consumer Law Damages Assessment Consumer Guarantees Defective Products Remedies Against Manufacturers

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Parties

Kenneth John Williams & Anor

Appellant/respondent

Toyota Motor Corporation Australia Limited

Respondent/appellant

Procedural Posture

Appeal / High Court of Australia Final Judgment

Legal Issues

  1. 1 What is the correct approach to assessing damages under s 272(1)(a) of the Australian Consumer Law for reduction in value of goods not of acceptable quality?
  2. 2 Should the availability and timing of repairs developed after supply affect the assessment of damages for reduction in value?
  3. 3 Does s 272(1)(a) confer a right to damages if there is no ongoing reduction in value at the time of trial due to a subsequently available repair?

Ratio Decidendi

Damages for reduction in value under s 272(1)(a) of the Australian Consumer Law are to be assessed by reference to the reduction in the value of the goods at the time of supply to the consumer, taking into account all information about the defect and its repairability known at the time of trial as part of the state and condition of the goods at supply; the later development or availability of a repair, its timing, effectiveness, and inconvenience are relevant to that assessment, but the assessment is not altered to avoid so-called over-compensation or by only considering ongoing reduction in value at the time of trial.

Court Disposition

Williams (S157/2023) appeal allowed; Toyota (S155/2023) appeal dismissed.

Orders

  • Appeal in S157/2023 allowed.
  • Set aside orders 3 of Full Court of Federal Court dated 27 March 2023.