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ARTICLE · 30 NOVEMBER 2014

Australian Financial Services and Leasing Pty Ltd v Hills Industries Ltd

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Summary of a recent High Court decision which considered the change of position defence.

AustraliaLitigation, Mediation & Arbitration
Mark Wilks
Mark Wilks
James Lucek-Rowley
James Lucek-Rowley
Michael McCarthy
Michael McCarthy
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In Australian Financial Services and Leasing Pty Ltd v Hills Industries Ltd, 1 the High Court has unanimously dismissed the appeal of a finance company that had made payments by mistake and sought to recover them. The court held that the recipients had changed their position to such an extent that any repayment would be inequitable. An interesting factual matrix provided the platform for a comprehensive analysis of the change of position defence, its application and exactly what the basis of restitutionary relief is in Australia.

Background

Richard Skarzynski was a director and shareholder in various companies in the Total Concepts Projects group (TCP). Mr Skarzysnki and his companies were supplied with equipment by Hills Industries Ltd (Hills) and Bosch Security Systems Pty Ltd (Bosch). As a result of these transactions, entities within TCP owed both Hills and Bosch a signi?cant amount of money.

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