Tribunal orders couple to be refunded $94,989.99 after buying faulty caravan

Published: November 17, 2022

A Brisbane couple who suffered a litany of leak-related issues with a brand new caravan more than five years ago will finally get a full refund for the faulty vehicle.

The Queensland Civil and Administrative Tribunal has ordered Hinterland Motorhomes GC to give William and Deborah Hoskin back the $94,989.99 they paid for Avida Topaz multi-terrain vehicle all the way back in February, 2017.

The Tribunal published the reasons for its findings last month, and set out in detail the couple’s tale of caravan woe.

* On first use of the caravan, they discovered the caravan was leaking, with water pooling on the kitchen benches, inside the cupboards and coming through the electrical channelling in the ceiling. They returned the caravan to the respondent’s service department to have the problem fixed.

Caravan repairs

* They found the caravan leaking again in July, 2017, and took the caravan back to the respondent for repair.

* In August, 2017, they again experienced rain and consequent water entry into the caravan. Again, they returned the van to the respondent for investigation and repair.

* The couple didn’t travel at all through 2018, except to take it to be serviced, and it otherwise garaged under cover.

* They caravanned for 38 days in 2019, and 57 days in 2020, but all travel coincided with fair weather. When they were preparing the for a trip in January, 2021, they found extensive corrosion and rust in the underfloor metal sheeting of the caravan. They complained to the manufacturer, Avida, and sent photographs of the underfloor area.

* Avida quickly confirmed the corrosion and rust had been caused by water damage. Avida referred the applicants to an independent repairer, who quoted to reseal the roof but told the couple there was no guarantee that that would fix the water entry problem.

* Ultimately, the repairs were conducted by the Hinterland Motorhomes service department in mid-2021, but the source of the leak was not identified. However, when they couple went on a trip to South Australia shortly afterwards, ‘they found the cupboards inside the caravan had pulled away from the walls and there was a crack in the shower base’. On July 10, they found the electric steps were no longer working.

* The judgement noted there were other issues on that trip.
“Whilst in South Australia it also rained and they found the caravan was leaking again with water again coming into the electrical wiring channels on both sides of the ceiling,” it said. “They returned the caravan to the respondent on 27 July 2021 a final time and asked the respondent to fix the leak and the damage to the cupboards and shower and to repair the electric steps.”

However, they were told that the steps could not be repaired until January, 2022, and they couldn’t fix the cupboards and shower because that would require major additional work, and there was no guarantee that new cupboards or a new shower could ever be fitted properly.

* On August 2, 2021, the applicants asked for a refund of the purchase price, and submitted a detailed account of the problems experienced with the van from the time of the first water leak shortly after initial delivery and the known damage caused by that.

* When the respondent refused the request for a refund, the couple commenced proceedings in the Tribunal seeking recovery of the purchase price of $94,989.99.

In preparation for the hearing, the couple hired a consulting mechanical engineer who prepared a report confirming their complaints.

The expert concluded that, in his opinion, ‘the only course of action to rectify the water leakage situation is to completely dismantle the module and start again from the chassis up’. He suggested continued use of the vehicle would only accelerate degradation because, even if the cause of the water leak was found and fixed, water would remain inside the composite roof, walls and floor. And he suggested the structural integrity of the module would rapidly decline and it would be unsafe to either inhabit or operate on public roads.

According to the judgement, the report’s conclusions were not challenged by the respondents.

The Tribunal said it was satisfied that the guarantee as to acceptable quality applied in the sale of the caravan. It concluded the caravan was not of acceptable quality at time of sale and ‘was not free of defects, safe or durable as a reasonable consumer fully acquainted with the state and condition of the goods (including the water leak and damage caused by the leak) would regard as acceptable’.

It said there was no evidence presented by the parties to suggest the caravan, with its significant water entry defect, had any salvage value.

The Tribunal therefore ruled that the couple must return the caravan, and the supplier must refund them the purchase price of $94,989.99.

Earlier this year, the caravan industry pledged ‘to do better’ following significant consumer criticism and a less-then-complimentary report from the ACCC.

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86GTS
2 years ago

Good news, should be more of it.
The couple should have received extra money for the mental stress plus the down time.

NANNA & PA
2 years ago
Reply to  86GTS

I guess they were happy to just have the judgement in their favour and have the whole mess over and done with 🙂

bill
2 years ago
Reply to  86GTS

Dead right,

Skarykitty
2 years ago

We had a similar win from the tribunal re repairs to our airconditioner but never received the money. Apparently the tribunal has no legal power to enforce their decision. Good luck to the couple and i hope the dealer comes good. We still can’t figure why the tribunal exists given the result.

AlPal
2 years ago
Reply to  Skarykitty

Just goes to show what a immense waste of taxpayers money

David
2 years ago
Reply to  Skarykitty

VCAT in Victoria have a similar issue. They can make all the “orders” they want but they have no way to enforce them other than the complainant taking the matter before a properly constituted Magistrates Court or similar.

Dorie
2 years ago
Reply to  Skarykitty

You just need to register the QCAT order in a Magistrates Court to enforce it. Costs nothing. Get some legal advice. Try legal aid Qld or a community justice group

Lindsay Kingston
2 years ago
Reply to  Skarykitty

Mate I have lots of tribunal experience all of them positive. Your next step should have been taking out an enforcement order at the tribunal.

Ric
2 years ago

That’s why I buy second hand vans, usually pretty old ones and renovate them, and the cost of buying and renovating usually comes in under $10k, and I get a waterproof, and functional van. Now I have gone back to an early model campertrailer, and most likely wont be buying any van again. I would never buy a new van in Australia, as I don’t think you can buy a trouble free new van at all..

Andrew
2 years ago
Reply to  Ric

Sounds honourable Ric but the dealer I worked for also sold such vans as you buy. It’s very common for dodgy cover up repairs to be done just so it could be moved on quickly & rip people off an extra $5 grand with little recall.

John
2 years ago

I’ve just looked up qcat on the qld govt legal website and apparently decisions made by qcat are enforceable by law. Maybe you should take it further. You have 6 years from the decision.

Graham Duffy
2 years ago

Same story different make. Brought new and leaked from day one. Back to the dealer in Brisbane a half dozen times for repairs. Still leaking.

Now two years old.

Towed at our expense back to the manufacturer in Melbourne. A week of alternate accommodation at our expense….

Still leaking ……more repairs. Couldn’t stand the worrying of it all repaired a final time and sold.

SueBee
2 years ago

Now..they just have to actually GET the money! Good luck with that!

Andrew
2 years ago

Having spent over a decade in the caravan industry repairing such faults, this does not surprise me one bit. For one of the few truly local manufacturing industries left in Australia, the RV sector is also the dodgiest. It is self regulated & therefore akin to allowing the fox to look after the chickens.That comes from experience of also spending a further 30 years working for a large reputable national manufacturer.

Baz
2 years ago
Reply to  Andrew

Kinda like the vaccine industry.

AlPal
2 years ago

After many discussions with fellow caravanners I’m under no illusions that many caravan manufacturers make the caravan owner chase up warranty issues with the various suppliers ie fridge,tv,stove,fans,water pumps,hot water systems and many many more ( this just doesn’t happen with K Mart, Big W and other retail outlets)
the caravan manufacturers MUST take ownership of all claims and not handball us off.

Andrew
2 years ago
Reply to  AlPal

You’re spot on AlPal. The large dealer I worked for did exactly that. In one case a supplying manufacturer had a 2 yr warranty on the van itself yet customers were told it only carried a 12 month one. It is without doubt the most dodgiest industry with no external regulatory authority.

Denis Stone
2 years ago

In NSW and QLD the Tribunals have no enforcement powers. You have to take the matter to Court to seek judgement to enforce a Tribunal Order – where you will go through the whole saga again.

At Court you will need to lawyer up – the Civil Procedure Rules are quite strict. *IF* you win, you *MAY* be able to have your legal costs paid by the other side (but absolutely no guarantee there), you *MAY* be able to claim interest on the amount of money involved. And assuming you do manage to get all that through, the other side can then liquidate their company (or bankruptcy – or part IX Bankruptcy Act) and you will get squat anyways.

Having just completed 12 months of absolute nonsense having a car trailer built, five appearances at NCAT (three virtual / two actual ), three sets of Orders made one by Consent – where although half cost was paid when order lodged (4.5k) but no trailer was produced until three days before the expiry of NCAT orders – my advice would be as follows:

Check out the NCAT website and the QCAT website to see if your manufacturer gets an appearance anywhere. My particular guy currently battling 13 matters in two different courts. NCAT matters are listed at the Court nearest to where the transaction took place. Usually.

Then decline any 50% up front requirement, preferring rather to lodge escrow with your solicitor. The Dodgy Bros builders will generally flee that type of requirement, and if your builder getting lots of Tribunal action, it should help you decide who *NOT* to go with.

I’m actually thinking we need some sort of Advocacy Service. The industry is definitely afflicted by takes such as these.

TerryWho
2 years ago

A great result for the couple. Should have come a lot earlier given all the problems.

Raymond Stafford
2 years ago

I was talking to a semi retired Doctor in winton and she was having trouble getting her new motor home repaired under warranty.
She reckons the industry is misogynist, but I assured her they treat everyone the same. They like taking the money but hate fixing the faults the industry needs regulation

Kevin maggs
2 years ago

Should been given compensation on top of refund.

Rob
2 years ago

I wonder whether they’ll see any of the money. It’s a sad indictment on the industry

Andy Taylor
2 years ago

I got a qcat judgement for nearly $10000, registered with magistrates Court, went to debt collectors. Still nothing and toothless

Peter C
2 years ago

Can’t believe it took so long to be compensated. There needs to be yearly caravan inspections like they do for vehicles Australia wide. The insides of the caravan need to be up to a safe standard too with all wiring accessible for safety inspections.

Guy Williams
2 years ago

I had a single axcle caravan which water came through the front window.
Had it looked at many times while it was under waranty, and at the end, they said it was a desein fault, so we sold it, as the buyer was made aware of the problem.

Niska McGilvray
2 years ago

Happens so often that these RV companies keep fobbing us off, until we give up. Well done that they kept onto it. Disappointing Avida!! You must do better as you are promoting your well built vehicles?!

sandra avery
2 years ago

This is just going to get worse with more and more people having faulty vans. The caravan industry want to get ready for what is awaiting them. If you have a problem with your van then report them ACCC.

Carla
2 years ago

Yes they just need to transfer it to the Magistrates Court for enforcement if they don’t get paid. It is the Magistrates Court that has those powers.

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