Misleading Actions and Misrepresentation in Vehicle Restoration and Customisation Claims

For the enthusiast and aficionado, restoring and customising a classic or rare car can be a lifelong dream, requiring significant financial investment as well as trust and faith in the skills, experience, planning and integrity of the restorer.

If the ‘wheels come off’, the dream quickly becomes a nightmare, as it did in the case of Lear v GRP Trading Enterprises Pty Ltd[2023] QDC 25.

This case provides some useful insights into the interpretation of and relationship between misrepresentation and misleading actions under consumer protection legislation in the UK.

Background

Mr Lear had a passionate interest in cars, going to car shows and reading car related magazines and he bought a 1953 Ford Mainline truck, as a project.

Over the following decade, he saved what amounted to $400,000 (around £200,000) to have the truck completely renovated and customised to his own specification and to display at custom car shows.

He contacted Ozrods, a firm specialising in car restoration and customisation, who told him it could deliver a nut and bolt renovation to the highest standard of fittings and finishing for showing at the top street car shows.

Ozrods further gave Mr Lear the impression it was a firm of in-house artisans explaining:

“among other things, that one of the advantages of getting the defendant to do the work, as I have just quoted, was that it had all the skills under one roof so that it would be able to do all the works in-house, which would be quicker and would result in a much better finish. He said that Mr Lear would be very impressed, effectively, by the completed car.”

Ozrods had the car for over 2 years, during which Mr Lear paid them $434,263.80.

An expert inspection of the truck revealed “a large number of defects in the paint work, including mottling and running in a number of places, bulging paint around fittings, fittings improperly installed, with inadequate or excessive gaps between them and surrounding or adjacent parts of the body work and poor painting around them. In some cases, those gaps were filled with Sikaflex or a similar product (that is, an elastic joint sealant). In many areas, the paint work had been so badly prepared that defects in underlying coats of paint or filler were showing through the top coat of paint.”

The truck required stripping and repainting.

Additionally, the fuel hoses were not suitable, the suspension system was of poor quality, there was risk of welds failing,  no evidence of any designs, drawings, calculations or tests for the suspension, and misalignment between the vehicle body, rear wheels, rear axle, drive shaft and differential. Additionally, the engine failed because of metal swarf in the fuel system.

Misleading actions or misrepresentation

The court found the restorer held themselves out as having the necessary skill and experience to deliver the highest standard of workmanship required and they assured the consumer he would be very impressed with the vehicle performance and overall finish.

It was these factors which led the customer to engage the restorer to carry out the works, which he would not have done had he known the truth.

Breach of contract and/or negligence

Together, the expert’s view was that the engineering and mechanical works carried out by the restoration firm were not properly designed or planned, and in some cases were dangerous, making the truck unroadworthy.

The bodywork, including welding, panel fabrication and repair and spraying were not carried out with the necessary care and skill and were not of street show car quality.

Outcome

The claimant successfully sued the car restorer and was awarded $592,175.95.

This article is an overview of the law and is not a replacement for formal legal advice tailored to your specific query. For further information, please contact Stormcatcher Law by calling 0333 700 7676 or emailing knowledge@stormcatcher.co.uk.

For expert advice on vehicle renovation, restoration and customisation dispute resolution and misrepresentation book a 1-hour consultation with The Car Lawyer for £250 + VAT per hour. Conferences will be via Zoom. Terms and conditions apply.