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Airtrade (Vanuatu) Ltd v Deou Motors Ltd [2001] VUSC 3; Civil Case 066 of 1998 (9 February 2001)

IN THE SUPREME COURT

OF THE REPUBLIC OF VANUATU

(Civil Jurisdiction)

Civil Case No.66 of 1998

BETWEEN:

AIRTRADE (VANUATU) LIMITED

Plaintiff

AND:n>

DEOU MOTORS LIMITED

Defendant

ass="MsoBoMsoBodyText" style="text-align: justify; margin-top: 1; margin-bottom: 1"> Mr. Mark Hurley for the Plaintiff

Mr. Silas Hakwa for the Defendant

JUDGMENT

class="MsoBoMsoBodyText2" align="left" style="text-align: left; margin-top: 1; margin-bottom: 1"> The nature of the plaintiff action against the defendant that about March 1997 the plaintiff delivered to the defendant a motor vehicle, a Toyota starlet registration No. H.345. He instructed the defendant to repair the vehicle including panel beating. This was to restore the vehicle to a roadworthy condition.

The defendant did carry out certain repairs and replaced certain panels on the vehicle and return the vehicle to the plaintiff for the plaintiff to use that vehicle for hire purposes. From these works the plaintiff claim negligent against the defendant.

Negligent

The nature of negligent as stated out in the Statement of Clai as follows:-

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1. &nnbsp;; Tpan>The defendant fail to properly align the body of the said vehicle with the result that the ch was ed and that the alignment was out by 6cm.

lass="MsoNoMsoNormal" style="text-indent: -18.0pt; margin-left: 36.0pt; margin-top: 1; margin-bottom: 1"> 2. &bsp; ; s span>

3. &nbsp s the defendant dant fails to examine the said vehicle upon completion of panel and chassis of said vehicle.

Default Judgment

Upon this statement of claim this Court enter a default judgment for reasontated on the judgment dated the 8th April 1999. Assessment of damages followed on thereafter and judgment to the amount of VT3,610,236 Million was granted to the plaintiff on the 1st July 1999. On the 14th March 2000 the Order of the 1st July 1999 was set-aside on application by the defendant and the matter was then brought to trial.

Before the trial started the plaintiff filed an amended statement of claim.

class="MsoNormal" style="mle="margin-top: 1; margin-bottom: 1">

Amendatement of Claim

On the 19th September the Amended Statement of Claim was introduced by the plaintiff which states out again the nature of negligent as follows:-

1. &nsp; & p; The air condiconditioner was not working.

2. Chassis alignment.

The right side of the chas chassis alignment was longer than the left side. The right front lower arm mount was pulled too far forward. The rail was not pulled to its correct specification and 10 mm shorter on the right than to the left.

3. The left front chassis rail was damaged.

4. / Tpanenge e wan not not sitting square. The engine is sitting in engine mount but is under tension.

lass=ormalle="m-left0pt; margin-top: 1; margin-bottom: 1">

p class="MsoNoMsoNormal" style="text-indent: -18.0pt; margin-left: 54.0pt; margin-top: 1; margin-bottom: 1"> 5. &nbs; &nbbsp;& p; Tpan>The steering wheel was not centred.

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6. &nbsp &nbssp;&n p; Tpan>There were no gap between the right front guard and the right sill.

7. ;&nbssp; Tpan>The right front chassis rail and the inner guard show signs of heating. Heating is a bited of sthengthening.

n lang="EN-GB" style="font-size: 12.0pt">

8. &nsp; &

9.ot;"> Wheel alignment.

The wheelbase measures 3-mm diffe from the left to the right.

Admission

The defendant admitted that in March 1997 the plaintiff deed to the defendant the Toye Toyota starlet Reg. No. H345 and the plaintiff gave instruction to the defendant mechanic to carry out all necessary repairs including panel beating and to restore the vehicle to roadworthy condition. The defendant did carry out the necessary repairs and replace parts in accordance with the agreed quotation and upon completion of works on instruction and return the said vehicle to the plaintiff.

class="MsoNoMsoNormal" style="margin-top: 1; margin-bottom: 1"> Issue

The defendant denied nent act on his part for major steering defect, improper alignment, and failure i in not examining the vehicle before delivered to plaintiff.

Evidence

In Adam�s evidence, which I accept that the vehicle was a rental vehfrom Avis Rent a Car. DurinDuring the period of the incident the vehicle was rented out to Elvis, who work for Santo Meat. The vehicle hit a post at Asco Motors and the impact area was the right hand side of the vehicle. The front windscreen was cracked in the middle, the front bumper was bent backward as far as the wheels, and the engine cover was cramp. In his opinion the vehicle may have hit hard concrete. On Adam�s learning of the accident he asked Deou Motors to tow the vehicle to their garage, which they did.

In April he started to talk with Deou Motors for quotation of the ve and later got the quotatiotation. The quotation was for VT639,290. He sent them a fax to Deou Motors to start work on the vehicle, and sign that quotation authorizing Deou Motors to do the work on the vehicle. The parts listed were as follows: front windscreen, 1 windshield rubber, 1 front right door, 1 front bumper, 1 front head lamp R/hand, 1 front right signal lamp, 1 rim 143 x 13, 1 knickle arm, one complete shock absorbers, 1 inner short panel, 1 front finder R/H, 1 tire all totalling the sum of VT409,270 for parts only.

In addition to these there were also costs for workshop ials at VT30,000, painting, labour VT40,000, Panel lael layout VT80,000 and Mechanical labour VT30,000. In addition was VT50,000 for engine repair. Total costs at VT639,270. The plaintiff paid this amount with two lots of payments on cheque drawn on Bank of Hawaii.

That vehicle H345 the owner was Airtrade Vanuatu Limited, and the Managing Director ofrade (Vanuatu) Limiteimited is George Adams himself.

In September he inspected the vehicle on completion of work est driven the vehicle with with the mechanic, previously employed by Deou Motors. On that test drive he experienced very bad movement to the brake, clutch and air condition was not working, and the fan blower was making a lot of noise. He then wrote a letter dated 27th September 1997 requiring those areas to be looked at and completed for him and to be picked up the following week. He followed up the 27th September 1997 letter by his 30th September 1997 letter.

By his letter of 8th October 1997 he made another inspection on the vehicle with the air blower was rectified but the air condition was still out.

Collection of vehicle

By this time George was overseas and his wife, who was the Operation Manager collected the vehicle. She was not called to give evidence, however her letter, which I accept as evidence in this case, written on the 21st November 1997 to Deou Motors. On her letter she expresses that when she drove the vehicle on a delivery run on the 26th October 1997, she could have caused two accidents. She return the vehicle to Deou Motors on the 27th October and was returned to her again the same day at 4.30 p.m. She then test driven the vehicle and found the steering when turn right it did not come back but continue to turn in that direction. She took the vehicle to Gerald De Gaillande Garage for mechanical inspection and Gerald with his friend identified fault that one side of the vehicle was shorter than the other side.

ass="MsoNoMsoNormal" style="margin-top: 1; margin-bottom: 1"> Gerald was not called to give evidence, nevertheless, the problem was identified which Adams can rely on for Deou Motors to find the fault on inspection and explain to him.

Thereafter, Adams explained to Deou Motors of toblem. Then a meeting was convening in Henry Ouchida office and he explained to them the problem. He suggested that Deou Motors would have to find a new chassis and not to put in a steel bar. Chris, a mechanic who was present at that time suggested that Adams could find a chassis, which Adams say he will try. Even Adam was asked to find a new chassis possibly in Fiji. Adam did not find one and that's where the matter ends.

In that meeting there was no clear ment reached by the parties what to be done to the chassis.ssis. In cross examination Adam admitted that the chassis was not part of the original agreement that he sign but stated that if there were any damage to the front of a vehicle in an accident than Deou Motors should straighten up the chassis.

I find that all parties were some how were aware the chassis was not in order and the vehicle required ired a new chassis or a good second hand one to rectify the problem. However, if there were any agreement reached by the parties then it did not came to be any agreement reached for new quotation for new work to be done for continue repair of the chassis. Nevertheless, Adams did not want any steel bar to be put in. On Adams' letter of the 27th of September he expressed that he was satisfied that all work carried out satisfactorily except the air conditioning which was not part of the work paid for as per quotation.

/b>

The twist came about when Maggie Adams tested the vehicl discovered that the wheelsheels did not come back to the centre when the vehicle was turned to the right. When this occurred, Adams brought in a specialist, John Greacen from New Zealand to do structural inspection of the said vehicle and inspected the chassis of the vehicle, H345 and also gave evidence in this matter.

I accept John Greacen as an e in structural parts of the vehicle. He conducted inspectioection on the vehicle between the 25th August to 30th August 2000. And his report of the 20th September 2000 outlines his finding in that report.

He reported that from that accident the vehicle had extensive structural damages to the front of the vehicle. For the chassis finding, I accept that the front right hand of the chassis was shorter than the left-hand side by 5 centimetre. By this shortening it affected the lining of the chassis and also the wheels alignment. Alignment here is what I understand to be the perfect lining of any component of a vehicle on factory production, tested and authorized for usage. If the alignments are affected one way or the other then surely it will affect the outcome performance. I find that the chassis was not aligned to correspond to its actual factory structural position on production after the accident.

He test driven the vehicle and when the vehicle was turn to the left the wheels will return back to the centre and that was proper, but when the wheels were turned to the right they could not come back to the centre. He noticed also that, the front wheels showed out rather than in straight line.

Basically his report was over the chassis alignmen wheel alignment as part of structural damages. I acc accept from his evidence that the chassis of the said vehicle was not properly aligned to factory standard and affected the wheel base lining causing the front wheel to show out and the right side shorter than the left side, making the wheels when turn to right they cannot come back on their own to the centre. This confirms what Maggie experienced where she almost causes two accidents and corresponds to Garage de Gaillande findings on shortening of one side of the vehicle.

The other area of finding was over heating. In heating, ept that the right front chassis and the inner guard uard were heated or welded, which should not have been done, but parts or new or good second hand parts should have been placed in instead of welding, which means that the right chassis rail, the right inner guard, the suspension tower and the engine mount should all have been replaced. All these were not part of the actual agreement as per quotation. If this was the case then the plaintiff should pay additional money to the defendant for such additional work apart from the agreed quotation. Further, the alignment was not properly aligned and the bolting positions were also affected making bolting cannot be done and welding was the only cause taken by the defendant in rectifying the shortening problem. I find that the defendant did their best to rectify the shortening problem as complained about by the plaintiff in restoring the vehicle to a roadworthy condition. However, on John's evidence this did not conform to Toyota manual requirement, which only need new parts or writ off the vehicle and made the vehicle still not road worthy.

I accept from John's evidence that Toyota prohibit heating in high strengtheninel. In that heating p process the crush zone was also removed. Crush zone places an important part if there is collision. That is crush zone part fitted in the car is for the protection of car users when there is a collision and it is built into the right hand chassis and the inner guard. I find the modification done by the defendant was not done in accordance with Toyota manual requirements of which new parts have to be fitted in including a new chassis requiring new quotation for payment of those new parts and chassis.

Lastly which I accept that there was a home made cross membr that was made from angle ngle iron bottled to the left and right chassis rails. Clearly Adams was against fitting in of steel bar but for total replacement of the chassis. Again this was not allowed with Toyota manual to be done. Furthermore, it was not a Toyota part. Because of these additional works done it alters the required specification of the chassis alignment and affected the general lining of the said vehicle. From the evidence of John Greacen I find that there were substantial repairs beyond what was quoted pursuant to their agreement as per quote and I find this was resulted to Adams complaint over shorten of the right side of the said vehicle and those were beyond what was required of the defendant to perform pursuant to that agreement. And that is evidence of the fact that the defendant did what best he can do in rectifying the problems, but not in accordance with Toyota manual repair.

These were the conclusions re by John Greacen:-

1. &nbbsp; The saidcvehicle damage could only be rectified and made safe for use if the guide line e repair manual for Toyota was followed on repairing the vehicle (which required new new Toyota parts) or;

2. The othtr altirnative was to writ off the vehicle.

lass="Mso="Mso="MsoNormaNormal" stl" style="yle="margimargin-top: 1; margin-bottom: 1"> With these conclusions, for the vehicle to be on the road again, total new parts have to be paid for, including a new chassis and to be fitted in, to rectifying the structural damages arising from that accident by using Toyota parts in accordance with Toyota manual. This means, the plaintiff is to pay for those additional parts requiring new quotations and further if a new chassis was put in to replace the damage one could solve a lot of those problems, as the vehicle sustained extensive structural damage on that impact.

Agreement

I find that the only agreement reached by both parties was upon the said quotation and that was for specific works as per quotation, however for chassis replacement there were no specific agreement reached and accepted by both parties and additional parts. If there were, then it requires additional costs, which the plaintiff has to authorize just like the quotation. As this was not the case than there was no agreement reached for those additional works and repair.

Negligent

Particulars of negligent

class="MsoNoMsoNormal" style="margin-top: 1; margin-bottom: 1"> The particulars of negligent from paragraph (a) to (i) be not contractuligation reached by the e parties as per quotation. The word to bring it to roadworthy condition was quite more then the quotation itself which means that if additional work to be done then additional parts has to be paid for. The amount of VT639,270 paid for was for specific work to be done as per agreement or quotation. However, if the amount was a deposit to get the vehicle up to roadworthy then the defendant will be contractually responsible to pay for additional parts and the plaintiff to pay the balance.

class="MsoNoMsoNormal" style="margin-top: 1; margin-bottom: 1"> Plaintiff's counsel submitted two cases in support of the type of neglias he referred to:-

1. Stennett -v- Hancock C [1932] A. C. 562.

In the above case the owner of the said vehicle instructe motor repairer to re-assemble his wheel again after fter it came off. In which he did, and when it was used the same wheel came off and injured the female person. It was held in this contractual negligent that the repairer was held liable to the female person who suffered injuries to the repairer negligent.

lass="MsoNoMsoNormal" style="text-indent: -18.0pt; margin-left: 54.0pt; margin-top: 1; margin-bottom: 1"> 2n style="font:7.0pt "Times New Roman""> &nbs; &nbbsp;& p; Hpan>Herschfol -v- Stewart Anden Ltd. [1940] I. K. Y. 155.

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This case where the supplier of re-conditioned vehicle who sold vehicle to the plaintiff and when the plaintiff used the vehicle and a wheel came off and he was injured. It was held that the defendant owes a duty to the plaintiff to take reasonable care, that the car, which was intended, or they knew for his immediate use, should be in a safe condition and that they were liable for negligent. The Court went ahead and ruled that the principle in Dangue -v- Stevenson [1972] A. C. 562; applies not only to manufacturers, but also to suppliers on repair of goods.

The plaintiff advances that the defendant owes a duty of care to the plaintiff and the defendant breached that duty. In applying the principle in the above cases to this case the defendant had the duty to repair the vehicle in accordance with contract as per quotation and any negligent arises from such duties the defendant will be liable. Hakwa advances that most of the things that Adams and John Greacen complained of were matters not agreed upon for the defendant to do. He advances that the defendant performed his duties in repairing the vehicle in accordance with the quotation and brought that vehicle into roadworthy condition. He advances too that they called Raymond Vallette and gave evidence to prove that the vehicle was road worthy at that time accept some disability in the right turning which need adjustable. Raymond�s letter of inspection the vehicle was restored to roadworthy condition at that time, and before Mr. Greacen structural inspection. This was sufficient for the defendant to rely upon for the purpose of the legal requirement of section 32 of the Road Traffic Control Act. Section 32 states:

"A condition in which the le or any other parts there off does not constitute a dangedanger or could caused danger."

By operation of Sect2 the finding by John Greacen, after the vehicle was return to the plaintiff, will ll amount to the vehicle as not road worthy for reasons of shortening. If this was the case than the plaintiff should have authorize the defendant�s to attend to it and for new parts to be put in including, a new chassis as previously discussed which required new quotations to rectify the problems. Otherwise, the act of negligent cannot be attached to the act of the defendant, as the duty he performed was in accordance with the quotation, which he completed.

I find that the only course for the tiff to take was for him to take his vehicle and put it in t in another garage to rectify the problem or authorized the defendant to rectify the problem with new quotations to be agreed upon by the plaintiff or for the plaintiff to buy a new chassis or otherwise writ off as concluded by John Greacen. To be writ off in John�s conclusion, in my view amount to the vehicle was not worthy to be on the road. As it stands it continue to be not roadworthy. The buying of a new chassis and additional parts cannot be passed on to the defendant.

The important of having another contract for a nessis and additional parts was that, when the plaintiff fails to pay for the extra costs and labour then there will be a basis for the defendant to exercise his right to recover his money.

ass="MsoNoMsoNormal" style="margin-top: 1; margin-bottom: 1"> Hakwa advances that the plaintiff has not red any damages at all. On this advancement the evideevidence shows that there were no physical damage suffered as a result to the work done as per quotation apart from loss of hiring, replacement and refund.

The vehicle was four years and sustained heavy structural damages on the front right side. What Mr. Greacereacen arrived at which I find to be a proper conclusion that new parts to be put in including a new chassis or writ off. This indicated that the vehicle was quite extensively damaged and as such it is not easy to repair structural damages to factory specification. In my view if a new chassis or a good second hand chassis was put in to replace the damaged chassis and additional new parts were put in, the lining would have come to order and would solve the problem for other components to correspond making lining more perfect to factory standard.

clas class="MsoNormal" style="margin-top: 1; margin-bottom: 1"> Return of VT639,279

On this cthe defendant completed the repair as per quotation except for the shock absorber, whr, which was discovered by Greacen on structural inspection. There was no reason why the defendant was not entitled to be paid for costs of parts and labour and for the defendant to replace a new shock absorber as per quotation. No evidence to show that he refuses to replace if asked to replace and he must replace.

Loss of hiring

The vehicle was completed and the piff was at liberty to pick up the vehicle. If works were nore not completed pursuant to the quotation then the plaintiff had all the right to return the vehicle for completion for repairs according to the quotation. The shock absorber replacement cannot be used for not taking the vehicle, as that was only discovered at the time of structural inspection.

Fose reasons the case is dismissed with costs to the defendant to be taxed if not agreeagreed.

Dated at Port Vila, this 9th day of February 2001.

p>

R. MARUM MBE

JUDGE


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