Wayland v Tonkin

In *Wayland v Tonkin*, the High Court of Australia considered a dispute between the appellant, Wayland, and the respondent, Tonkin. The case concerned the interpretation and application of certain provisions within the *Corporations Act 2001* (Cth) and the common law principles relating to the recovery of money paid under a mistake.

The central legal issues before the High Court were whether the respondent was entitled to recover money paid to the appellant under a mistake of fact, and if so, whether the appellant had a defence to such a claim. Specifically, the court had to determine the scope of the defence of change of position, which can operate to defeat a claim for money had and received.

The High Court held that the respondent was entitled to recover the money paid under a mistake. The court affirmed the established principle that money paid under a mistake of fact is recoverable, subject to certain defences. In this instance, the court found that the appellant had not established the defence of change of position. The reasoning focused on the fact that the appellant's actions, which were relied upon as constituting a change of position, were not undertaken in reliance on the mistaken payment in a way that would make it inequitable to require repayment. The court emphasised that the defence requires a genuine alteration of the recipient's position in consequence of the payment, such that it would be unjust to restore the status quo.

The High Court ordered that the appeal be dismissed.