Chang v Azari [2020] NSWCATAP 154

Chang v Azari [2020] NSWCATAP 154

The Tribunal made an error of law by restricting damages under s 267 (4) of the Australian Consumer Law (NSW) by reference to the terms and price of the installation contract. Having found that breaches of the statutory guarantees caused the flooring to require replacement, the Tribunal was required to determine the reasonably foreseeable cost of carrying out replacement work, including any justified cost of new floorboards, underlay and glue, regardless of the fact that the original floorboards were supplied by the appellant as a gift and the damages claimed exceeded the contract price.

Jurisdiction
Australia
Judgment Date
27 July 2020
Procedural Posture
Consumer Law Appeal Concerning Assessment of Compensation for Breach of Statutory Guarantees in the Supply of Services / Appeal Panel Decision on the Papers
Outcome
Appeal allowed; part of the proceedings remitted to the Tribunal at first instance for re-determination without further evidence.
Legal Topics
['australian Consumer Law Statutory Guarantees' 'supply of Services With Due Care and Skill' 'fitness for Purpose' 'major Failure' 'assessment of Damages' 'rectification Costs' 'appeal and Remittal']
['consumer Law' 'civil Procedure' 'damages'] ['australian Consumer Law Statutory Guarantees' 'supply of Services With Due Care and Skill' 'fitness for Purpose' 'major Failure' 'assessment of Damages' 'rectification Costs' 'appeal and Remittal']

Case Brief

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Procedural Posture

Consumer Law Appeal Concerning Assessment of Compensation for Breach of Statutory Guarantees in the Supply of Services / Appeal Panel Decision on the Papers

Legal Issues

  1. 1 ['Whether the Tribunal at first instance erred in assessing compensation for breach of statutory guarantees by excluding the cost of new floorboards because they were supplied by the appellant and were not part of the installation contract.' 'Whether damages under s267 (4) of the Australian Consumer Law (NSW) may exceed the contract price for the services.' 'Whether additional damages should include the cost of new floorboards, underlay and glue.']

Ratio Decidendi

The Tribunal made an error of law by restricting damages under s 267 (4) of the Australian Consumer Law (NSW) by reference to the terms and price of the installation contract. Having found that breaches of the statutory guarantees caused the flooring to require replacement, the Tribunal was required to determine the reasonably foreseeable cost of carrying out replacement work, including any justified cost of new floorboards, underlay and glue, regardless of the fact that the original floorboards were supplied by the appellant as a gift and the damages claimed exceeded the contract price.

Court Disposition

Appeal allowed; part of the proceedings remitted to the Tribunal at first instance for re-determination without further evidence.

Orders

  • ['Allow the appeal.' 'Remit part of the proceedings to the Tribunal at first instance for re-determination, without further evidence, of the question whether, in addition to the amount of $5,323.40 the Tribunal, on 25 February 2020, ordered the respondent to pay the appellant, the respondent is to pay additional...