Island Helicopters Pty Ltd v Central (Qld) Aviation Pty Ltd and Anor (No.2)

Island Helicopters Pty Ltd (the plaintiff) brought proceedings against Central (Qld) Aviation Pty Ltd and Anor (the defendants) in the Supreme Court of Queensland. The dispute concerned the plaintiff's claim for damages arising from the defendants' alleged breach of contract and misleading and deceptive conduct in relation to the sale of a helicopter. The plaintiff sought to recover the difference between the price paid for the helicopter and its true market value, as well as consequential losses.

The primary legal issues before the Court were whether the defendants had breached their contractual obligations to the plaintiff, and whether they had engaged in conduct that was misleading or deceptive in contravention of the *Trade Practices Act 1974* (Cth) (now the *Competition and Consumer Act 2010* (Cth)). Specifically, the Court had to determine if representations made by the defendants regarding the helicopter's condition and history were false or misleading, and if such representations induced the plaintiff to enter into the sale agreement.

In its reasoning, the Court found that the defendants had made representations concerning the helicopter's maintenance history and operational hours that were not substantiated and were, in fact, misleading. The Court applied the principles of contract law regarding the formation of agreements and the consequences of misrepresentation, as well as the provisions of the *Trade Practices Act* concerning misleading and deceptive conduct. The Court concluded that the plaintiff had relied on these representations to its detriment, establishing both a breach of contract and a contravention of the Act.

The Court ordered that the plaintiff was entitled to damages, the quantum of which was to be assessed.