Whitsunday Shire Council v Laguna Australia Airport P/L

The Whitsunday Shire Council brought a proceeding against Laguna Australia Airport P/L in the Queensland Supreme Court, seeking a declaration that a deed of agreement for the sale of its interest in a parcel of land operated as an airport was not binding. The Council held the land as trustee under the Land Act 1994, and it could not obtain ministerial approval for the sale. The Council contended that the contract was illegal and unenforceable due to the statutory prohibition on the sale without approval. Laguna Australia Airport P/L argued that the contract should be enforceable as it was severable from the illegal part.

The court had to determine whether the contract was expressly or impliedly prohibited by statute and, if so, whether the illegal part of the contract could be severed from the valid part. The court examined the provisions of the Land Act 1994 to determine if the sale of the land was expressly or impliedly prohibited. The court also considered whether the illegal part of the contract could be severed from the valid part and whether the contract would still be enforceable if the illegal part was removed.

The court found that the contract was expressly prohibited by statute as the Council could not obtain ministerial approval for the sale of the land. The court held that the prohibition was absolute and could not be severed from the rest of the contract. The court also found that the Council was not estopped from enforcing the prohibition because Laguna Australia Airport P/L was aware of the need for ministerial approval. The court granted the Council's application for a declaration that the contract was unenforceable and dismissed Laguna Australia Airport P/L's counterclaim. The court ordered Laguna Australia Airport P/L to pay the Council's costs of and incidental to the proceedings.