Court Orders Car Dealership to Refund Customer After Numerous Repairs

TDT | Manama

Email: mail@newsofbahrain.com

The High Appeals Court has ruled in favour of a customer who experienced repeated mechanical issues with a new car, ordering the dealership to issue a full refund and compensation. The Court mandated that the dealership repay the buyer 5,200 Bahraini dinars, the original price of the vehicle, plus 400 dinars in material and moral damages.

The case involved a new car purchased on March 31, 2022, for 5,200 dinars. According to the buyer's lawyer, Abdulrahman Al Muawada, the vehicle required 14 visits to the dealership for repairs over nearly two years. These repairs addressed various significant defects, including issues with the engine, transmission, and their respective computer systems.

The lawyer stated that while the dealership covered the costs under warranty, the repair process took 132 days, significantly exceeding the expected 29-day timeframe. The delay was attributed by the dealership to awaiting manufacturer approval for parts replacement and the import of necessary components from outside Bahrain.

The buyer argued that the car's prolonged unavailability caused significant financial losses, estimated at 8,700 dinars, due to his inability to transport patients for his business. He also incurred 1,300 dinars in transportation costs. The initial claim included a request for the contract to be rescinded, a full refund, legal interest, and 1,800 dinars in compensation.

The lower court initially awarded 1,330 dinars in compensation, plus interest, and covered expert and legal fees. Dissatisfied with this ruling, the buyer appealed the decision. The appeal focused on the argument that the eight manufacturing defects identified in an expert report – affecting the suspension system, ignition system, engine mounts, engine computer, engine cylinder, and transmission valve – were hidden defects that would not have been easily detectable during a standard inspection. The buyer argued that had he been aware of these defects, he would not have purchased the vehicle.

The dealership countered that they had undertaken all repairs at their own expense and that the buyer had not proven the car was unusable.

The High Appeals Court, however, sided with the buyer, stating that the concentrated nature of the defects in the engine area constituted hidden flaws undetectable without specialised expertise. The Court ruled that the buyer was entitled to the protection of the seller’s warranty, regardless of whether the dealership was aware of the defects.

The court ordered the contract to be rescinded, mandating the full refund of 5,200 dinars plus interest from January 21, 2024. The court also upheld the 300 dinars in moral damages, 400 dinars in expert fees, and 400 dinars in legal fees, reducing the material damages to 400 dinars from the lower court's 1,030 Dinars award. The dealership was also ordered to pay the appeal costs and additional legal fees.