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ARTICLE · 03 AUGUST 2026

Your Hired Equipment Has Been Damaged By The Customer - Can You Prove It?

Bartier Perry Solicitors
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When equipment is hired out but later damaged, hire businesses face a familiar challenge: who says the equipment wasn’t already faulty, who bears the risk, and can the hirer recover the cost of repair? The NSW Supreme Court’s decision in Civiltrak Sydney Pty Ltd v Orange Equipment Pty Ltd t/as Orange Hire offers valuable guidance to solving this puzzle.

AustraliaLitigation, Mediation & Arbitration
David Creais
David Creais
Yasmin Humaidan
Yasmin Humaidan
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This article was published in the Hire and Rental Industry Magazine February 2026, page 24 

When equipment is hired out but later damaged, hire businesses face a familiar challenge: who says the equipment wasn’t already faulty, who bears the risk, and can the hirer recover the cost of repair?

The NSW Supreme Court’s decision in Civiltrak Sydney Pty Ltd v Orange Equipment Pty Ltd t/as Orange Hire offers valuable guidance to solving this puzzle.

Background

Orange Hire supplied Civiltrak with a diamond saw cross hired from the owner, Ground Tek. After several days, Civiltrak reported the saw leaking oil. Orange Hire collected it and issued a replacement saw, which was also reported as damaged a few days later. 

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