Ferrari Investment (Townsville) Pty Ltd (in liq) v Ferrari

In the matter of Ferrari Investment (Townsville) Pty Ltd (in liquidation), the liquidators brought proceedings against Ferrari, alleging that Ferrari breached his fiduciary duties by transferring the company's rent roll to another entity. The case was heard in the Queensland Supreme Court. The primary issue before the court was whether the damages for the breach of fiduciary duty should be assessed by analogy to common law damages, as per the principles set out in Spencer v The Commonwealth of Australia, or if they should be determined according to the value in the hands of the wrongdoer.

The court considered the principles established in Markwell Bros Pty Ltd v CPN Diesels (Qld) Pty Ltd, where the court held that the measure of damages in cases of breach of fiduciary duty should reflect the benefit obtained by the wrongdoer. The court held that the proper measure of damages in this case was the value of the rent roll in the hands of Ferrari, as this would most accurately reflect the loss to the company. The court noted that this approach would ensure that the wrongdoer does not benefit from his or her own wrongdoing and would provide a more equitable outcome for the company and its creditors.

The court further held that the remedy of equitable compensation was appropriate in this case, as it would provide a just and equitable outcome for the company and its creditors. The court rejected the argument that common law damages should be used as the measure of damages in this case, as this would not accurately reflect the loss to the company. The court held that the measure of damages should be determined by reference to the value of the rent roll in the hands of Ferrari, as this would provide the most accurate reflection of the loss to the company.

The court ordered that Ferrari pay equitable compensation to the liquidators of Ferrari Investment (Townsville) Pty Ltd (in liquidation) in the amount of $600,000, representing the value of the rent roll in his hands at the time of the transfer. The court also ordered that Ferrari pay interest on this amount from the date of the transfer until the date of judgment.