The Federal Court of Australia has found that certain popular model Ford vehicles are defective.

Between 2011 and mid-2016, Ford sold approximately 70,000 Focus, Fiesta and Ecosport vehicles fitted with a PowerShift dual-clutch transmission in Australia.

The class action is for the benefit of any person who bought or leased (or otherwise acquired an interest in) any of the Ford models described below at any stage over the period 1 January 2011 to 29 November 2018.

On 29 June 2021, Justice Perram delivered his decision in relation to the Ford Class Action, together with his Honour’s reasons for it. We are pleased to advise that the applicant was successful in her claim for damages, and on key aspects of her claim for group members. Ford was ordered to pay $17,248.19 (including interest) to Ms Capic. In particular, the Court found that the Affected Vehicles suffered from certain component and design deficiencies, and that they were therefore not of "acceptable quality" within the meaning of the Australian Consumer Law. A copy of the judgment is available on the Federal Court’s website (https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2021/2021fca0715).

On 3 November 2021, the Court gave judgment on the "common questions" – that is, issues which arose in Ms Capic’s claim and also arise in group members’ claims. Broadly speaking, group members need to show (1) Ford is liable and (2) they have suffered loss as a result. The November judgment concerned whether Ford is liable to group members. The Court has now made orders which give effect to this judgment. This decision is important because group members can rely on these findings, and will not have to prove those separately. A copy of the judgment is available on the Federal Court’s website (https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2021/2021fca1320).

The two judgments given this year are important steps, but so far, there has been no decision about how much compensation group members may be entitled to. The Court has left open the possibility of loss being determined on an aggregate basis (ie, all group members together).

On 1 February 2022, Ford lodged an appeal against the two judgments. On 24 February 2022, Ms Capic was granted permission to appeal aspects of the judgments that went against her, and affirming parts of the judgments that went in her (and group members’ favour). A copy of the judgment is available on the Federal Court’s website (https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2022/2022fca0155).

On 26 August 2022, the Court made orders for a notice to be displayed on this website which provides group members with an update on the status of the proceedings. A copy of the notice is available here.

We will endeavour to consider all options, going forward, and will keep you up to date with progress in the case.

Between 20-28 March 2023, Justice Yates, Justice Beach and Justice Downes of the Full Court of Federal Court of Australia heard Ford’s appeal and Ms Capic’s cross appeal. The Court has reserved its decision. We cannot reliably predict when the appeal judgment will be delivered, but we think it is likely to be delivered within 12 months (and it may be considerably sooner).

The appeals will not determine group members’ entitlement to damages. We expect that will be done by the trial judge, Justice Perram, after the appeals are determined.

To stay up to date, we encourage you to provide your contact details to us by registering here.

Click here to register your interest in the Ford Australia Class Action. We will then make contact to provide you updates on the case, including the outcome of the case once the Court makes a decision, going forward.

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