Embattled property developer faces more accusations

Seven families in Geraldton have launched a Supreme Court action against Barry Humfrey and eight other defendants including RSM Bird Cameron partner John Thomson and former Docker Peter Bell.

The Supreme Court writ, which follows a Federal Court Writ lodged against Humfrey and his family, alleges misconduct by Mr Humfrey and his co-defendants over the purchase of units in the North Cape Development Trust, an investment vehicle set up to develop a marina complex in Exmouth.

The plaintiffs are seeking damages including equitable damages and interest, costs and any other relief as the judge may see fit.

Like the Federal Court action, the plaintiffs in the Supreme Court action are largely prominent Geraldton families or their superannuation funds. Mr Humfrey said in relation to the Supreme Court writ that “if it was pursued he would defend it.”

He said in relation to the Federal Court writ his group had sought to strike out many of the accusations against him and his family.

The plaintiffs have been granted leave to lodge an amended claim in the Federal Court by February 21 and the defendants have been ordered to file a response by February 28 with a directions hearing set for March 10.

The Federal Court writ was lodged by a group of Geraldton investors who put their savings into building the $30 million Mariner Resort project.

The defendants to the action are Mr Humfrey, along with his wife Mary and their daughter Kerrie-anne Greyson.

They claim Mr Humfrey made a deal with the project joint venture partner, a company called Caversham, to buy their share for a price below market value, without giving them an equal opportunity to do so, which they claim was required under their investment agreements.

Caversham is a subsidiary of Aspen Group Ltd, a company listed on the Australian Stock Exchange.

Details of the complicated writ state Mr Humfrey did this for “his own enrichment causing loss and damage to the investors.”

The action is being taken by the new directors of Mariner Resort Andrew Pitcher, Richard Cobley and Brian Mayfield, who want Mr Humfrey taken off the board and prosecuted.

They want him prosecuted on the basis that he had fiduciary duties to act in good faith in the best interests of the plaintiff (investors) including “to not improperly use his position as a director and company secretary to gain an advantage for himself or someone else, to not enter into transactions in respect of the Plaintiff where his duty to the Plaintiff conflicts with his personal interests.”

Stage 2 of the Mariner project, consisting of 103 units, was built at a total cost of about $30 million and was completed in 2009.

However, the project is believed to be in debt to the tune of $19 million with Bankwest and 81 units of the original 103 remain unsold.

Related coverage: Humfrey sued

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