Qantas Airways Limited v BMD Constructions Pty Limited

In the matter of Qantas Airways Limited v BMD Constructions Pty Limited, the Court was tasked with addressing the dispute regarding the damages incurred by an aircraft leased by Qantas Airways Limited (QAL) and subsequently damaged by BMD Constructions Pty Ltd (BMD). BMD had caused damage to a leased Boeing aircraft during a construction project at Brisbane Airport, leading QAL to initiate proceedings against BMD for negligence. BMD responded by filing an application to strike out the amendments made in the second further amended statement of claim by QAL, asserting that the amended pleadings did not disclose a reasonable cause of action and would prejudice or delay the fair trial of the proceeding.

The court considered whether QAL had lost its entitlement to claim damages due to an internal restructuring that occurred after the aircraft was damaged. This restructuring saw the transfer of operational responsibilities for the Boeing 717-200 fleet, including the damaged aircraft, from QAL to Eastern Australia Airlines (EAA), a wholly owned subsidiary of QAL. The court needed to determine if the restructuring had any bearing on QAL's ability to pursue damages for the aircraft's damage. The court's reasoning focused on the terms of the sub-lease agreement between QAL and EAA, particularly clause 5.2, which included a waiver and general release of liability for QAL concerning the aircraft.

The Court ultimately decided that the amendments to the statement of claim should be struck out, with the exception of certain paragraphs, allowing QAL the opportunity to replead. The Court held that the restructuring did not automatically absolve QAL of its right to claim damages for the damage to the aircraft, as the restructuring did not explicitly exclude QAL from such claims. The Court dismissed the rest of BMD's application, leaving it to the parties to resolve any costs associated with the application and to provide further directions regarding the proceeding.