Did you know? Preserving key evidence, such as the burnt out salvage of a vehicle, is crucial, and disposing of such evidence may be considered an abuse of process and result a claim being permanently stayed. When a proceeding is “stayed”, the Court brings the proceedings to a halt (either permanently or for a specified period) to avoid any undue or unfair circumstances for any of the parties to the litigation.
The recent Queensland District Court decision of Challis v Ford Motor Company of Australia Pty Ltd [2023] QDC 193 highlights the significant consequences resulting from a party’s failure to preserve evidence.
Facts of the Case
The Plaintiffs brought two related proceedings against the supplier and manufacturer of their Ford Ranger motor vehicle. The Plaintiffs alleged that a manufacturing defect with the vehicle caused a fire, which resulted in the destruction of the vehicle and damage to their house.
After Court proceedings were filed, the Plaintiffs’ insurer disposed of the salvage of the vehicle and some of its damaged components. The Defendants requested to inspect the salvage of the vehicle, only to be told the salvage was no longer available. The Defendants then filed an Application to have the proceedings stayed on the basis that the disposal of the salvage, which had not been inspected by the Defendants to determine the cause of the fire, was an “abuse of process”.
The Court agreed with the Defendants’ position that the salvage was a critical piece of evidence that ought to have been further examined to determine the proximate cause of the fire, and that its destruction made it impossible for the necessary assessments to be conducted by relevant experts and, most importantly, by the Defendants. On that basis, the Court agreed with the Defendants that the disposal of the salvage had prejudiced the Defendants’ right to a fair trial, and that the disposal of the evidence constituted an “abuse of process”. This finding resulted in the Plaintiffs’ proceedings being permanently stayed and the Plaintiffs failing to recover nearly $600,000 in loss and damage.
Key Takeaways
- Preserving Evidence: In cases involving physical evidence, such as vehicles or products damaged by fire, escape of liquid, manufacturing defects, etc., it is vital to ensure that evidence is not destroyed or disposed of prematurely.
- Impact on Legal Proceedings: The destruction of evidence can significantly affect the probability of a successful recovery, weakening your case and potentially resulting in proceedings being dismissed or stayed.
- Duty to Preserve: Proactive steps to preserve critical evidence from the outset ought to be considered on claims where there may be a prospect of recovery.
Our recommended approach when dealing with matters such as this is to do what you can early to preserve privilege, and to instruct any experts to retain key evidence and to retain the evidence for as long as you have to, even if this results in ongoing costs to retain the evidence.
About me (Sheldon Venter) – I am a Lawyer within the Brisbane Insurance team. I’ve been working within the insurance space for over 9 years but outside of work I’m an avid motorcycle rider and MotoGP enthusiast.
