Range Rover Refund – An International Perspective

Court judgements of foreign jurisdictions, particularly those within the Commonwealth such as Australia and Canada, can provide useful insights for similar cases in the UK and influence domestic legal outcomes.

Insightful Case Study: Morphy v Beaufort Townsville Pty Ltd [2018]

The Australian case of Morphy v Beaufort Townsville Pty Ltd [2018] is particularly insightful regarding vehicle rejection after six months from delivery. Key factors in this case included the use of oil sample analysis as evidence, the absence of fault codes, and the vehicle’s fitness for purpose.

Australian Consumer Law

Schedule 2 of the Competition and Consumer Act 2010 sets out the Australian Consumer Law (ACL), which is a more sophisticated version of the UK Consumer Rights Act. The ACL combines contract law, the law of misrepresentation, consumer protection from unfair trading regulations, and the Unfair Contract Terms Act into one easily digestible statute.

The Purpose of the Car

Similar to many UK buyers of a Land Rover Discovery or Range Rover, Mrs. Morphy sought a luxury, top-of-the-range car that would be enjoyable, reliable, safe to drive, and capable of towing a horsebox. Led by Land Rover’s advertising and website, the vehicle was described in terms similar to the UK marketing, emphasizing peerless refinement, luxury, and pioneering innovation.

In the UK, the brand is associated with the Rugby World Cup, the ruggedness of the African terrain, the equestrian community, and Wimbledon, evoking durability, reliability, and luxury.

In April 2016, Mrs. Morphy bought a brand-new Range Rover Autobiography for $235,074 (around £123,000).

The Range Rover Faults

A few weeks after purchase, the coolant level warning light came on, and the dealer topped up the coolant. Two months later, the gearbox dashboard warning light came on, and in July, the coolant level warning light appeared again, but no fault was found.

In October, the vehicle broke down, and an inspection revealed the throttle body was clogged with “carbon deposits,” which were replaced, despite the dealer’s inability to explain the carbon deposits. In November, the coolant header tank was empty, yet no fault was found during inspection and testing at a Land Rover dealer. Mrs. Morphy rejected the car.

In December, the coolant level dropped again, and it was thought the engine might need replacing, but the dealer replaced the oil cooler instead, which seemed to resolve the issue. However, in August 2017, 16 months after delivery, the coolant level warning light reappeared, and Mrs. Morphy reiterated her rejection of the car.

Oil Sample Analysis

In the UK, the supplying dealer or finance company would likely claim there was no evidence supporting the car was faulty and refuse the refund. Alternatively, they may require an invasive engine inspection costing thousands to dismantle the engine.

In the Morphy case, an expert report was commissioned, and an oil sample analysis revealed:

• Elevated levels of copper, iron, and sodium in the engine oil
• Indications that the engine bearing surfaces had already deteriorated
• A high likelihood that the life of the engine had been compromised
• Debris bypassing the oil filter, leading to damage of all bearing surfaces
• Severe corrosion of engine parts
• Sludge deposits

This analysis, combined with the carbon buildup in the throttle body and coolant loss, resulted in judgment for the claimant.

The Judgment

The judge found that the repetitive and undiagnosed failures made the car unreliable. This unreliability and the prospect of sudden and catastrophic engine failure rendered the motor car unfit for its basic purpose, to be driven on or off roads, let alone for any other purposes.

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.

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