Auckland man dies before van fire compensation victory

Sunday, 9 February 2020

An Auckland car trader must pay a man's estate the $7450 price of a Ford Transit van which burst into flames shortly after he bought it.

'A reasonable consumer would not expect a recently purchased vehicle to spontaneously ignite,' motor Vehicle Disputes Tribunal adjudicator BR Carter ruled.

Marek Powierza bought the van from Robert Allen Wholesale in Auckland, trading as RAW Motors, on June 25, 2019, but just over three weeks later, it was destroyed when a fire started behind the dashboard.

Powierza took a claim to the Motor Vehicle Disputes Tribunal, alleging the blaze was caused by a fault. He won, but died before the tribunal made its ruling.

* How to get your money back from dodgy car dealers**

The tribunal hears claims from people who believe they were sold defective vehicles by registered vehicle dealers, with cases revolving around whether the vehicles were of 'acceptable quality' when they were sold.

Tribunal adjudicators can order dealers to pay compensation, when they find they have sold defective vehicles.

In his complaint, Powierza alleged the fire in the van was caused by an electrical fault

A New Zealand Fire Service expert assessed the burnt van and considered a wiring fault was the likely cause of the blaze.

The dealer said the cause of the fire had not been proven, so it could not be attributed to a fault with the vehicle.

The van caught fire on July 17 while parked at Powierza's home. His son Stefan was nearby and was able to extinguish the fire, but not before significant damage was done.

The damaged van was assessed by senior fire risk management officer Robert Watson from the New Zealand Fire Service, who considered the fire resulted from an undetermined fault in the electrical wiring behind the dashboard.

Powierza, and afterwards his estate, believed the fire was caused by an inherent defect within the vehicle, possibly caused by repairs to the van before it was sold.

Robert Allen Wholesale denied performing any repairs that could have interfered with the vehicle's wiring, and suggested the fire may have been caused by someone else performing work on the vehicle, including by tampering with, or removing, the vehicle's radio.

Carter rejected that explanation, as well as the suggestion that the fire may have been 'deliberately' lit.

He said the New Zealand Fire Service Report made no mention of any sign of the fire being intentionally lit.

'Accordingly, I consider it most likely that, as set out in Mr Watson's report, the fire was caused by an unidentified fault in the vehicle's wiring or electrical system that caused the vehicle to spontaneously ignite.

'The vehicle was therefore not of acceptable quality for the purposes of section 6 of the Act,' he ruled.

A buyer is allowed to 'reject' a car that has substantial faults.

During his evidence on the first day of the hearing, Powierza said he purchased the van to enable Stefan to move from Auckland to Whanganui. His estate asked the tribunal to order the dealer to pay the $1800 cost it subsequently incurred in hiring a rental van to transport Stefan Powierza's belongings to Whanganui in October 2019.

Carter rejected that claim.

'Certainly, if Robert Allen Wholesale had been told that the vehicle was being purchased with the specific intention of transporting Stefan and his belongings to Whanganui, then this cost may have been reasonably foreseeable consequence of the vehicle becoming unusable because of the fire,' he ruled.

'However, Robert Allen Wholesale was not told of this intended purpose, and I am not satisfied that it should be obliged to compensate Mr Powierza's estate in those circumstances.'

GOING TO THE TRIBUNAL

* The Motor Vehicle Disputes Tribunal is only for people who have bought a vehicle from a registered trader.

* It can, however, cover traders who meet should be registered traders, but have not registered.

* It handles disputes over amounts up to $100,000. It can be more if both parties agree in writing.

* The tribunal can order a dealer to repair a vehicle, take back a vehicle, or pay compensation.

* The compensation can include the costs of unwinding any consumer loan taken to buy a defective vehicle.