In May 2010 proceedings were commenced in the Supreme Court of Queensland (Court) by Kosho Pty Ltd (Receiver and Manager Appointed) (Kosho), a borrower of the Fund, and City Co Pty Ltd (Receiver and Manager Appointed), a third party mortgagor of the Fund (collectively, the Kosho parties), against Trilogy Funds Management as Responsible Entity of the Fund (Trilogy).
The Kosho parties alleged that Trilogy, amongst other things, had breached the finance facility granted by the Fund to Kosho. All claims, except one resulting in Trilogy being ordered to pay nominal damages of $10, were dismissed by the Court. On 26 June 2013 the Court made orders to that effect and the Kosho parties were required to pay a proportion of Trilogy’s legal costs.
On 26 June 2013 the Kosho parties appealed to the Queensland Court of Appeal and on 11 July 2013 Trilogy cross-appealed. Subsequently, on 16 July 2013 the Kosho parties notified the Court of Appeal that they wished to discontinue the appeal and agreed Trilogy’s costs of the appeal. On 13 September 2013 orders were made by the Court of Appeal formally dismissing the appeal and cross appeal with costs. The appeal proceedings are now finalised.