New Pioneer Motors director Keith Callinan sues for $155,000

A motoring magnate is suing after the $140,000 engine upgrade to his luxury pleasure craft failed after 51 hours of use. But the equipment distributor has argued there is no case.

A Mackay motoring magnate is suing a marine equipment distributor after spending $140,000 on an engine upgrade for his luxury vessel that failed after 51 hours of use.

Keith Callinan is suing for breaches of contract and consumer guarantee as a supplier and manufacturer after buying the equipment – two Yanmar 8VLs and ZT370 stern drives – in 2012 for his 43ft pleasure craft Quick Fix.

Keith Callinan, barrister Michael de Waard and Macrossan and Amiet managing director Stuart Naylor leave Mackay courthouse after day one of the damages claim trial against Power Equipment Pty Ltd.

The New Pioneer Motors director filed a $155,412.15 claim against Power Equipment Pty Ltd, who imported the engine package.

However barrister William Macintosh argued in Mackay District Court there was no transaction between Power Equipment and Mr Callinan.

He said Power Equipment had sold the engines and stern drives for $111,650 to Mackay Marine Services, who then supplied the package and installation to Mr Callinan for a totally different price.

During a three-day trial the court heard Mr Callinan had bought Quick Fix for a price “in the early $300,000s” to be used for cruising around the Whitsundays.

Quick Fix is a 43ft pleasure craft linked to a Mackay District Court trial between New Pioneer Motors owner Keith Callinan and Power Equipment Pty Ltd.

Mr Callinan alleged there had been a conversation between him, the former Mackay Marine Services principle Mark Gralow and a Power Equipment representative Nick Marsden, who he claimed urged him towards the 8VL model suggesting they were “more durable and reliable”.

The court heard Mr Callinan paid about $140,000 for the engine package and installation, which was completed by Mr Gralow who was an authorised Yanmar dealer.

Barrister Michael de Waard, for Mr Callinan, said the trial was “quite a straight forward proceeding” – he alleges his client bought the engine package from Power Equipment and through its agent Mr Gralow.

Keith Callinan paid $140,000 for the installation of two Yanmar V8 engines and stern drives.

“We’re not dealing with a 20 horsepower engine on the back of a tinny,” Mr de Waard, instructed by Macrossan and Amiet, said.

“We are dealing with a very large, powerful luxury vessel. It’s a vessel that should be capable of undertaking substantial trips.”

Power Equipment has denied the aforementioned conversation with Mr Marden ever occurred.

“This is a manufacturer’s liability case and it’s a manufacturer’s liability case (Mr Callinan) can’t prove,” Mr Macintosh said, arguing there was no breach of contract or supplier’s liability.

“There were two entirely separate transactions between independent parties.”

The court heard between 2013 and 2018 there were at least 10 significant failures after the new engines were installed including the total failure of one of the engines after 51 hours of use.

The vessel has not been used since 2018 after the gearbox failed.

The case has been adjourned for a later date for closing statements.

Originally published as New Pioneer Motors director Keith Callinan sues for $155,000