Polar Aviation Pty Ltd v Civil Aviation Safety Authority

Polar Aviation Pty Ltd and Mr Butson appealed against the Civil Aviation Safety Authority in the Federal Court of Australia, challenging the summary dismissal of their claims for damages. The appellants, a flying school and its chief pilot and flying instructor, had previously been subject to regulatory actions by the Civil Aviation Safety Authority, which led to the suspension of the appellants' Airline Operator's Certificate and Mr Butson's approval as chief pilot and chief flying instructor. The appellants sought damages under the Limitation Act 1935 (WA) and alleged that the Civil Aviation Safety Authority owed them a duty of care in the exercise of its statutory powers. The primary judge dismissed the claims for damages, holding that the appellants had no reasonable prospect of success due to the lack of a reasonable cause of action in negligence against the Civil Aviation Safety Authority. The appellants sought leave to replead on appeal, although they had not done so in the primary judge's court. They also argued that the primary judge erred in concluding that a duty of care could never arise or in determining that it did not arise in this case. The court found no error in the primary judge's dismissal of the proceeding. The appellants were obliged to adequately plead the alleged duty and material facts, but they did not produce a proposed amended pleading on appeal. The complex history of the matter indicated ample opportunities to rectify deficiencies in the pleadings. Ultimately, the court dismissed the appeal with costs.