Specialty Fashion Group v Muirhead Nominees Pty Ltd

In Specialty Fashion Group v Muirhead Nominees Pty Ltd, the plaintiff, a company involved in the fashion industry, sought summary judgment against the defendant, Muirhead Nominees Pty Ltd, for the recovery of money had and received. The plaintiff claimed that certain payments made by them to the defendant were made under a mistake, as a result of fraudulent conduct by the defendant. The case was heard in the Supreme Court of New South Wales. The primary issue before the court was whether the defendant was entitled to retain the money paid by the plaintiff, given that the defendant was aware of the plaintiff's improper conduct. Additionally, the court needed to determine whether the defendant had changed their position in good faith, relying on the payments received from the plaintiff.

The court found that the defendant had been aware of the plaintiff's fraudulent conduct when making the payments, and thus, the defence of change of position in good faith was not available to the defendant. The court held that the plaintiff was entitled to recover the money paid under mistake, as the defendant had not acted in good faith. In reaching this conclusion, the court considered the affidavit verifying the defence, which did not provide any evidence to support the defendant's claim of a change of position in good faith. The court found that the defendant had failed to meet the necessary burden of proof to establish their defence.

As a result, the court granted the plaintiff's application for summary judgment and ordered the defendant to pay the plaintiff the sum of $120,000, representing the money paid under mistake. The court also ordered the defendant to pay the plaintiff's costs of the application, assessed on the standard basis. The defendant was given leave to appeal the decision, but no such appeal was lodged. The judgment serves as a reminder of the importance of acting in good faith when receiving payments made under mistake due to another party's improper conduct.