| Global Finance Group Pty Ltd |
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| Date of Funding: | 16 Mar 2000 |
| Plaintiff: | Global Finance Group Pty Ltd |
| Defendant: | Marsden Partners |
| Court: | Supreme Court of Western Australia |
| Cause of Action: | Global Finance was a mortgage broker during what became known as the Mortgage Broking Scandal in Western Australia. IMF is funding an action by the liquidator of Global Finance against the auditors of the company alleging negligence and breach of contract. The claim covers four audit reports.
The auditors in question carry insurance and one of the questions in the litigation is whether the amount of the insurance (about $3 million) applies to all claims or to each claim so that the amount available from the insurance company will be either $3 million or $12 million. The claim exceeds $12 million. It is based on failed mortgages and is calculated by reference to the difference between the amount invested and the amount recovered plus interest. |
| Result: | Case settled in June 2007. IMF received $207m on an investment of $0.7m with capitalised costs of about $0.2m |
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