Lamarra v. Capital Bank Plc & Anor [2006] ScotCS CSIH_49 (10 October 2006)

Lamarra v. Capital Bank Plc & Anor [2006] ScotCS CSIH_49 (10 October 2006)

The vehicle supplied was not of satisfactory quality at delivery due to defects including a faulty differential, constituting a material breach. The respondent was entitled to reject the vehicle and rescind the hire purchase agreement. The existence of a manufacturer's warranty and ease of repair were not relevant to the statutory assessment of quality.

Citation
[2006] ScotCS CSIH_49
Parties
Pursuer and Respondent: Mario F. Lamarra; Defenders: Capital Bank plc; Third Party and Appellants: Shields Automotive Ltd, trading as Shields Land Rover
Jurisdiction
Scotland
Judgment Date
10 October 2006
Procedural Posture
Appeal From Sheriff Principal's Decision / Final Appellate Judgment
Outcome
Appeal dismissed; sheriff principal's decision affirmed.
Legal Topics
Implied Terms, Satisfactory Quality, Material Breach, Hire Purchase Agreements, Remedies for Breach
Contract Law Consumer Law Implied Terms Satisfactory Quality Material Breach Hire Purchase Agreements Remedies for Breach

Case Brief

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Parties

Mario F. Lamarra

Pursuer and Respondent

Capital Bank plc

Defenders

Shields Automotive Ltd, trading as Shields Land Rover

Third Party and Appellants

Procedural Posture

Appeal From Sheriff Principal's Decision / Final Appellate Judgment

Legal Issues

  1. 1 Whether the supplied vehicle was of satisfactory quality under section 10 of the Supply of Goods (Implied Terms) Act 1973
  2. 2 Whether defects justified rejection and rescission of the hire purchase agreement
  3. 3 Relevance of manufacturer's warranty to assessment of quality

Ratio Decidendi

The vehicle supplied was not of satisfactory quality at delivery due to defects including a faulty differential, constituting a material breach. The respondent was entitled to reject the vehicle and rescind the hire purchase agreement. The existence of a manufacturer's warranty and ease of repair were not relevant to the statutory assessment of quality.

Court Disposition

Appeal dismissed; sheriff principal's decision affirmed.

Orders

  • Defenders to pay respondent £9,658.42 with interest at 8% per annum from 10 July 2001 until payment.
  • Defenders liable for respondent's expenses, except as previously decerned for.