Mottershead Investments Pty Ltd v Aircraft Support Industries Engineering Pty Ltd (in Liquidation)

Mottershead Investments Pty Ltd (the plaintiff) brought proceedings against Aircraft Support Industries Engineering Pty Ltd (in Liquidation) (the defendant) concerning alleged misrepresentations and unconscionable conduct. The dispute centred on statements made by the defendant regarding its intention to pay outstanding invoices, which the plaintiff claimed were false and misleading, and constituted unconscionable conduct. The matter was heard by Judge Driver in the Supreme Court of New South Wales.

The court was required to determine whether the defendant's representations concerning its future conduct, specifically its promise to pay outstanding invoices, were false or misleading under consumer law provisions. Additionally, the court had to consider whether such conduct was unconscionable, and if the plaintiff had relied upon these statements. A further issue was whether a chose in action, relating to the outstanding debt, had been validly assigned to the plaintiff.

Judge Driver found that the defendant's statements regarding payment of the invoices did not constitute a representation as to future conduct that was false or misleading. The court reasoned that the statements, in their context, did not amount to a warranty or a promise that payment would be made, but rather an expression of intent that was subject to the defendant's financial capacity. Consequently, the plaintiff's claims for misleading or deceptive conduct and unconscionable conduct failed. The court also determined that the purported assignment of the debt was ineffective.

The plaintiff's claim was dismissed.