Qantas Airways Limited v Leonie's Travel Pty Limited

Qantas Airways Limited (Qantas) appealed to the High Court of Australia against a decision of the Full Federal Court which had affirmed a judgment in favour of Leonie's Travel Pty Limited (Leonie's Travel). The dispute concerned Qantas's entitlement to recover from Leonie's Travel certain amounts paid by Qantas to Leonie's Travel, which Qantas alleged were paid under a mistake of fact.

The central legal issue before the High Court was whether Qantas could recover the payments made to Leonie's Travel on the basis of a mistake of fact, notwithstanding that Leonie's Travel had acted in good faith and had no knowledge of the mistake at the time of receiving the payments. This involved considering the application of the common law rule in *Bilbie v Lumley* and its exceptions, particularly in the context of payments made under a mistaken belief that a contractual obligation existed.

The High Court, in a joint judgment, held that the payments were recoverable. Their Honours affirmed the principle that money paid under a mistake of fact is recoverable, even if the recipient was unaware of the mistake and acted in good faith, provided the payer has not, by reason of the payment, been induced to alter their position. The Court distinguished the present case from situations where a payment is made under a mistaken belief as to a legal right or obligation, which might otherwise be considered a mistake of law and therefore irrecoverable. The Court found that the mistake here was one of fact, relating to the existence of a debt, and that Leonie's Travel had not demonstrated any change of position that would render it inequitable for Qantas to recover the moneys.

The appeal was allowed, and the orders of the Full Federal Court were set aside. The High Court remitted the matter to the Federal Court for determination of the amount to be repaid.