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A On the basis of the information supplied
Page 97
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it seems that the problem started with the pinch bolt retaining the front shackle pin on the front spring becoming loose.
When this bolt eventually fell out the shackle pin would start to move in the bracket. With it being the front of the front spring, which is not a swinging shackle, the axle movement via the spring eye would, in a short time, cause the shackle pin to wear an oblong hole in the bracket.
You state that the date of the certificate of fitness was June 1966. But surely maintenance had been carried out on the coach since that date because it does not take 12 months for a pinch bolt to slacken.
Whether or not you decide to challenge this decision is up to you, but our advice is: accept the ruling of the court and make sure that whoever carries out your maintenance in future makes a point of checking those items among others which affect the steering, braking and general roadholding of a vehicle.