Five weeks before his death from cancer, Lindsay McNicol agreed to buy a former topdressing aircraft from Rural Air for $250,000 on a handshake deal after a brief inspection and not requiring an engineering inspection. Son James challenges the deal as an unenforceable bargain, alleging Rural Air took advantage of his late father’s then cognitive difficulties. The High Court put Rural Air’s claim for payment on hold, pending detailed evidence as to Lindsay’s medical condition at time of his purchase.
Since the January 2024 transaction, the Fletcher aircraft has been sitting at Hawkes Bay airport incurring parking fees.
Rural Air Work Ltd is controlled by Joshua Calder.
He told the High Court that Lindsay McNicol both viewed and purchased the aircraft on the same day in 2024 with an oral agreement to buy at $250,000; paying a ten per cent deposit with the balance due in two weeks. The buyer was Mr McNicol’s company: Stoneburn Farm Ltd.
Stoneburn Farm paid the deposit. Rural Air sued after Mr McNicol’s death, when the balance was not paid.
By this time, Stoneburn Farm was under control of Mr McNicol’s son James. He lives in Australia.
Son James challenges whether there is an enforceable contract.
The first he heard of the purchase was advice from his father days before his death of plans to convert the aircraft into a ‘caravan’ and go tripping around Australia, he says.
He claims Mr Calder took advantage of an elderly 78 year old man with underlying health issues. The High Court was told Lindsay McNicol’s prostate cancer had spread to his brain prior to his death.
Mr Calder says Mr McNicol drove himself to the viewing and showed no evidence of being impaired in any way in course of their discussions.
Son James claims the purchase is an unenforceable unconscionable bargain.
Courts will not enforce contracts where a stronger party knows the weaker was under a disadvantage and took advantage of that fact.
What is a ‘disadvantage’ depends on the circumstances. It can include ignorance, lack of education, illness, age, mental or physical infirmity, stress or anxiety.
Associate Judge Skelton refused Rural Air’s application for fast-track summary judgment on its claim.
Detailed evidence is needed as to Lindsay McNicol’s medical condition at time of his $250,000 purchase on behalf of Stoneburn Farm.
Stoneburn Farm Ltd v. Rural Air Work Ltd – High Court (24.02.25)
25.071