A class action worth up to $32 million being brought against Sandhurst Trustees, which acted as trustee for failed property lender Wickham Securities, will proceed with the first court date set for next week.
The action, which will have its first hearing in the Federal Court of Australia on July 27, will include around 150 investors with the lead plantiff — Graeme and Marion Clark — seeking to recover $220,000 in lost funds.
However the head of Shine Lawyers Professional Negligence team Jan Saddler said the total claims against Sandhurst would be much higher with Wickham liquidators PBB Advisory estimating total losses suffered by investors to be between $28 million and $32 million.
Saddler said the 150 investors had signed funding agreements with more investors expressing interest now that a court date has been confirmed.
In a 70 page statement of claim Shine stated it would seek to show that Sandhurst failed to act as a prudent trustee and exercised appropriate diligence regarding its oversight of Wickham’s borrowing, lending and business management.
The class action will take place after Shine was able to secure access to 39 different categories of documents which they claimed were necessary for the action to proceed.
The documents — in paper and electronic form — detailed Sandhurst’s role as trustee of Wickham Securities and include trustee reports, financial statements, trust deeds and communication with the liquidators which eventually wrapped up the Wickham business.
Sandhurst was ordered by the court in March of this year to hand over the documents which were necessary for Shine and the investors to ascertain whether they could obtain relief through the courts.
Saddler said Shine and the investors expected a favourable hearing and that Sandhurst was financially capable of meeting the claim and it had given no reason to Shine or the investors no reason to believe the claim would not be met in the event of successful case.
Brisbane-based Wickham Securities collapsed in 2013 owing $27 million to 300 investors with director Bradley Sherwin appointing PPB Advisory as voluntary administrator.
Sherwin also operated Sherwin Financial Planners and DIY Superannuation Services out of the same office as Wickham Securities.
Sherwin was subsequently banned by the Australian Securities and Investment Commission for a period of two years and seven months from September 2013.
