Investment company Mayfair 101 has been allowed to continue legal proceedings against the financier of its 109 Mission Beach properties, and four insolvency practitioners, subject to the provision of an indemnity and security for costs, after a Federal Court decision was handed down today: Mainland Property Holdings Pty Ltd (Receivers and Managers appointed) v Naplend Pty Ltd [2022] FCA 1305.
Mayfair 101 filed proceedings in April alleging unconscionable conduct and other breaches of duty by financier, Naplend Pty Ltd, and four receivers from the insolvency firm, McGrathNicol, in relation to a receivership over 109 Mission Beach properties in Far North Queensland.
Naplend, the investment vehicle of the Palan family office, and the four Sydney-based receivers attempted to have the proceedings summarily dismissed on the basis that Mr James Mawhinney, the sole director of Mayfair’s Mainland Property Holding entities, had no standing to cause the companies to bring it.
The Federal Court’s Justice McElwaine dismissed Naplend’s application for summary judgmenttoday, allowing the case to proceed, with the proviso of an indemnity and security for costs to be provided by Mr Mawhinney.
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