Equuscorp Pty Ltd (formerly Equus Financial Services Ltd) v Haxton & Ors [2011] HCATrans 50

The High Court of Australia, comprising French CJ, Gummow, Heydon, Crennan, Kiefel and Bell JJ, considered an appeal by Equuscorp Pty Ltd (formerly Equus Financial Services Ltd) against a decision of the Full Federal Court. The dispute concerned the interpretation and application of certain provisions of the Corporations Act 2001 (Cth) and the common law principles relating to the recovery of moneys paid under a mistake of law. Equuscorp sought to recover substantial sums paid to the respondents, Haxton and others, under agreements that were later found to be void.

The central legal issues before the High Court were whether the respondents were unjustly enriched by the payments received from Equuscorp, and if so, whether Equuscorp was entitled to recover those payments. Specifically, the Court had to determine whether the payments were made under a "mistake of law" in circumstances where the respondents had provided valuable services in return for the payments, and whether the principle that money paid under a mistake of law is irrecoverable, as established in *Bilbie v Lumley* (1806) 2 East 469; 102 ER 447, had been abrogated or modified by statute or common law. The Court also considered the scope of the defence of change of position.

The High Court held that the common law rule precluding recovery of money paid under a mistake of law was not abrogated by the Corporations Act 2001 (Cth). However, the Court affirmed that the equitable doctrine of unjust enrichment provided a basis for recovery in such circumstances, provided that the recipient had not provided valuable consideration for the payment. In this instance, the Court found that the respondents had provided valuable services, which constituted consideration for the payments made by Equuscorp. Consequently, the Court concluded that Equuscorp was not entitled to recover the moneys paid to the respondents, as there was no unjust enrichment. The appeal was dismissed.