Truck importer ordered to pay $54,000

On 3 March 2017, Evan Ball purchased a 2010 Toyota Dyna truck from Kobe Export New Zealand Ltd (Kobe Export). The Consumer Information Notice provided to Ball stated that the vehicle had an odometer reading of 32,335 kms at the point of sale. A couple of months later, Ball noticed that the vehicle was overheating. After an assessment, it was found that the vehicle had combustion gases in the cooling system, damage to three cylinders and head gasket failure.  Consequently, Ball asked Kobe Export to rectify the damage, however they refused to do so. They alleged that the engine damage was caused by Ball’s use of the vehicle, in particular the slide on camper that was installed by Ball had not been properly attached, creating drag and subsequently causing the vehicle to overheat. They also suggested that Ball was an inexperienced truck driver, and his driving of the vehicle may have contributed to the damage. Ball then went to the Motor Vehicle Tribunal, claiming that he was entitled to a refund of all amounts paid in respect of the vehicle. It was found that Kobe Exports misled Ball as to the distance that the vehicle’s engine had travelled and as to the mechanical condition of the vehicle. Tribunal assessor, Shane Haynes advised that there is no way that the engine in the vehicle had travelled only 32,335 kms. Haynes also considered that the engine’s condition suggests that it has travelled at least 200,000 kms.  Adjudicator Brett Carter said the engine was likely to have been replaced before Kobe Export bought the truck, and that "Kobe Export had no knowledge that the vehicle's engine had been swapped.” However, Carter said Kobe Export had breached the Fair Trading Act by misleading the Balls. "The vehicle's odometer reading was accurate, but the implicit representation that the vehicle's engine had travelled the same distance was not ... The fact that Kobe Export may not have known that the vehicle's engine had been replaced with an engine in poor condition provides it with no defence," Carter said. Accordingly, Kobe Export was ordered to pay Ball $54,150.60, which included storing the vehicle, insurance and assessment costs. Click here to read the full case.