McRobert Superannuation Pty Ltd v Cranston

The Supreme Court of Western Australia dismissed the appeal brought by the appellants, McRobert Superannuation Pty Ltd, Andrew John McRobert and Caron Maree McRobert, against the decision of Smith J. The appeal related to claims for relief in equity and under the Corporations Act 2001 (Cth) against the respondents, John Windsor Cranston, Kingslane Pty Ltd, Giorgi 2009 Pty Ltd, MPD Pty Ltd, Redmont Resources Pty Ltd, Gillian Ann Morris and Graeme William Morris. The respondents, except for Giorgi 2009 Pty Ltd, were also beneficiaries of the Giorgi 2009 Trust (Trust). The Trust was established by a deed, the Giorgi Trust Deed, to hold Lot 2009 Giorgi Road, Picton, which was to be subdivided. The Trust was established by Giorgi 2009 Pty Ltd, a company of which Mr Cranston was the sole director. The Trust was to be used to hold the title to Lot 2009 until it was subdivided. The respondents claimed that the Trust was a managed investment scheme. The appellants claimed that the respondents had breached their fiduciary duties in connection with the Trust and sought relief in equity and under the Corporations Act. The respondents claimed that the appellants had consented to or acquiesced in the breaches of fiduciary duty and that the Trust was not a managed investment scheme. The trial judge found in favour of the respondents. The Court of Appeal found that the appeal was dismissed. The appellants' claims were dismissed because they had either consented to or acquiesced in the breaches of fiduciary duty. The Court of Appeal found that the trial judge was correct to find that Mr McRobert had consented to or acquiesced in the breaches of fiduciary duty. The Court of Appeal found that the trial judge was correct to find that the Trust was not a managed investment scheme required to be registered under the Corporations Act.