Managed Investment Scheme

LM Investment Management (in liq) v BMT [2015] NSWSC 1902

The lender in liquidation (previously the RE for the LM First Mortgage Income Fund) advanced $23m to a developer secured over the land purchased and sued its surveyors for an alleged negligent valuation of works and also sued for misleading and deceptive conduct. The surveyor raised various defences, namely that its conduct did not cause …

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Park & Muller (liquidators of LM Investment Management) v. Whyte (receiver of the LM First Mortgage Investment Fund) [2015] QSC 283

The responsible entity of the LM First Mortgage Investment Fund went into liquidation and liquidators were appointed to manage the responsible entity to wind it up as well as the scheme itself under section 601NE(1) of the Corporations Act pursuant to court orders. A receiver was also appointed to ensure the scheme was wound up …

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ASIC v Piggott Wood & Baker [2015] FCA 18

Piggot Wood & Baker were running a contributory mortgage scheme involving some 300 investors. In 2001, the Federal Court ordered the scheme to be wound up as an unregistered managed investment scheme and appointed a liquidator.  The liquidator subsequently commenced proceedings against the law firm seeking damages in relation to moneys paid between 1991 and …

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Kordamentha v LM Investment Management Ltd (in liq) [2015] QSC 4

LM Investment Management Limited was: As responsible entity, the licensed trustee of a registered managed investment scheme known as LM Australian Income Fund. Trustee of a Unit Trust called the LM Managed Performance Fund. Essentially, these were two investment schemes created for the purpose of investing in mortgages and property operated by the same company. …

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Wellington Capital Limited v ASIC [2014] HCA 43

In this case Wellington Capital, the Responsible Entity of a defunct mortgage scheme, sold 41 per cent of the fund’s assets to a shelf company and then arranged for the shares in the shelf company to be distributed in specie to the unitholders in the scheme on a pro ratabasis.  ASIC argued that Wellington had no power under …

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Gippsreal Ltd v Hausfeld Johnson Pty Ltd [2012] FCA 956

A managed investment scheme loaned reliance on a rural NSW properties and suffered severe losses when the security proved to be worth much less than the valuations. The responsible entity of the scheme sued the valuer claiming misleading conduct and breach of contract. The valuer made a late application to plead that the officers (MD, …

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The Trust Company v Perry [2012] NSWSC 604

The lender sought judgment for $20m against the guarantors. The guarantors argued that the Trust Company which was suing them, had no standing to sue them as it was not the company they originally contracted with. The loan was originally made by City Pacific, a responsible entity operating a mortgage fund. After the GFC Trilogy …

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Mercedes Holdings v Waters (No 5) [2011] FCA 1428

Investors in an MFS Fund brought a class action against the responsible entity of the fund, certain directors and its auditors. Two previous attempts to amending the pleadings were refused as only the claim in negligence against the auditors was found to be viable. Nevertheless the investors now applied for leave to pursue both the …

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