Against Sandhurst Trustees Ltd
On 24 August 2009, Slater and Gordon commenced a representative proceeding on behalf of Mr and Mrs Mark and Rhonda Harrison in the Federal Court of Australia against Sandhurst Trustees Limited (Sandhurst) (the Class Action).
Under the Corporations Act 2001 (Cth) (the Act), Fincorp Investments Limited (Fincorp) was required to appoint a trustee to safeguard the interests of investors. Sandhurst was appointed to this role in March 2004 pursuant to two Trust Deeds.
In the Class Action it is alleged that Sandhurst breached its obligations under section 283DA of the Act by failing to “exercise reasonable diligence” to ascertain whether the property of Fincorp would be sufficient to repay Fincorp noteholders when those investments became due.
The Class Action was brought on behalf of persons who:
- invested in Debentures and/or Unsecured Notes issued by Fincorp Investments Limited after 7 December 2004;
- held those notes as at 23 March 2007; and
- suffered loss or damage as a result of Sandhurst’s breach of duty.
On 20 May 2011, Justice Gordon of the Federal Court of Australia approved a settlement of the class action.
Slater and Gordon is finalising the administration of a Settlement Distribution Scheme. Settlement payments to eligible Group Members have been finalised.