Lang v Hawker Pacific Pty Limited

Lang (the appellant) brought proceedings against Hawker Pacific Pty Limited (the respondent) in the Federal Court of Australia, alleging that the respondent had engaged in misleading or deceptive conduct in contravention of section 52 of the Trade Practices Act 1974 (Cth) (now section 18 of the Australian Consumer Law). The dispute concerned representations made by the respondent regarding the condition and airworthiness of a particular aircraft that the appellant purchased. The appellant claimed that these representations were false and that he suffered loss as a result.

The primary legal issue before the High Court of Australia was whether the respondent's conduct in representing that the aircraft was "in good condition" and "airworthy" constituted misleading or deceptive conduct under the relevant legislation. This involved determining the meaning and effect of these representations in the context of the sale of a used aircraft, and whether the appellant relied on these representations to his detriment. The court also considered the extent to which the appellant's own investigations or knowledge might negate the misleading nature of the respondent's statements.

The High Court found that the representations made by Hawker Pacific were indeed misleading or deceptive. Their Honours reasoned that the unqualified statements about the aircraft's condition and airworthiness, made in the context of a commercial transaction for a significant asset, created a strong impression that the aircraft was free from substantial defects and fit for its intended purpose. The court held that the respondent had failed to qualify these representations sufficiently to alert a reasonable purchaser to the true state of the aircraft, which had a history of significant damage and repairs. The principles of statutory interpretation regarding misleading or deceptive conduct were applied, focusing on the overall impression conveyed to the consumer.

The High Court allowed the appeal, setting aside the orders of the Full Federal Court and remitting the matter to the Federal Court for determination of the appellant's damages.