Coshott Family Pty Ltd v Lyons

Coshott Family Pty Ltd (the plaintiff) brought an action against Lyons (the defendant) seeking the recovery of money had and received. The plaintiff alleged that it had paid funds to the defendant to hold subject to further directions, and subsequently requested repayment. The defendant contended that the funds had already been paid out in accordance with the plaintiff's directions. The matter came before the Court of Appeal of New South Wales.

The central legal issue before the Court of Appeal was whether the plaintiff bore the onus of proving that any payments made by the defendant from the funds held were made without the plaintiff's authority, or whether the onus lay on the defendant to prove that such payments were made with the plaintiff's authority.

The Court of Appeal held that in an action for money had and received, where the plaintiff establishes that money was paid to the defendant to hold subject to further directions and that the plaintiff has requested repayment, the onus shifts to the defendant to demonstrate that the money was disbursed in accordance with the plaintiff's directions. The Court reasoned that the defendant, having received the money for a specific purpose and being accountable for its disposition, must justify any payments made. The defendant failed to discharge this onus.

Consequently, the appeal was dismissed with costs.