find the latest legal job
Corporate Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Highly-respected, innovative and entrepreneurial Not-for-Profit · Competency based Board
View details
Chief Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Dynamic, high growth organisation · ASX listed market leader
View details
In-house Projects Lawyer | Renewables / Solar | 2-5 Years PQE
Category: Generalists - In House | Location: All Australia
· Help design the future · NASDAQ Listed
View details
Insurance Lawyer (3-5 PAE)
Category: Insurance and Superannuation Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Dynamic organisation ·
View details
Legal Counsel
Category: Corporate and Commercial Law | Location: North Sydney NSW 2060
· 18 month fixed term contract · 3-5 years PQE with TMT exposure
View details
Maurice Blackburn starts $60m City Pacific class action

Maurice Blackburn starts $60m City Pacific class action

In yet another class action for Maurice Blackburn, the firm has today filed a claim in the Federal Court against directors of the former City Pacific First Mortgage.

In yet another major class action for Maurice Blackburn, the firm has today filed a claim in the Federal Court in Sydney against directors of the former City Pacific First Mortgage Fund.

The class action claim if brought on behalf of Trilogy Funds Management, as responsible entity for the Pacific First Mortgage Fund, formerly the City Pacific.

The claim is against directors and officers of the former ASX-listed company, Philip Sullivan, Stephen McCormick, Ian Donaldson, Thomas Swan and Peter Trathen.

It follows millions of dollars being written off by the Fund as a result of its losses on loans to property developers, Bullish Bear Holdings Pty Ltd and Atkinson Gore Agricultural Pty Ltd between 2006 and 2009. The claim follows notices of demand being sent to the former directors and officers, Maurice Blackburn said in a statement.

In July 2009 Trilogy replaced City Pacific Ltd as responsible entity of the Fund at a time when the value of the Fund had already been written down by $514 million. Trilogy’s case alleges that lending decisions made by the defendants were unreasonable and failed to follow the Fund’s own lending criteria causing significant loss and detriment to the Fund’s 11,000, predominantly elderly, investors.

The claim seeks damages of $60 million for losses arising from several transactions being the Fund’s loans to Bullish Bear in connection with its ‘King Tide’ development in Broadbeach Queensland, and loans to Atkinson Gore Agricultural relating to its ‘Seven Mountains’ development in Canungra, Queensland.

Maurice Blackburn Principal Jason Geisker said:
“It is fundamental to the fair and proper operation of any registered managed investment scheme that those entrusted with management of such schemes act in the best interests of scheme members. Investors are entitled to expect responsible entities and their officers to comply with their statutory obligations.”

Geisker said that where managed investment schemes are not conducted in accordance with their constitutional requirements, investors are exposed to unacceptable additional investment risks without their knowledge or consent.



Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Maurice Blackburn starts $60m City Pacific class action
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
LCA president Fiona McLeod SC
Aug 17 2017
Where social fault lines meet the justice gap in Aus
After just returning from a tour of the Northern Territory, LCA president Fiona McLeod SC speaks wit...
Marriage equality flag
Aug 17 2017
ALHR backs High Court challenge to marriage equality postal vote
Australian Lawyers for Human Rights (ALHR) has voiced its support for a constitutional challenge to ...
Give advice
Aug 17 2017
A-G issues advice on judiciary’s public presence
Commonwealth Attorney-General George Brandis QC has offered his advice on the public presence of jud...
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...