Jianping Qiu v Yuchen Chen (No 2)

• 1. MISLEADING OR DECEPTIVE CONDUCT — Financial Services — where second defendant was corporate trustee of unit trust and third defendant was director of that trustee — where second defendant provided information memorandum to first defendant relating to the unit trust — where first defendant introduced plaintiffs to the opportunity to invest in the unit trust and provided information memorandum to them — where first defendant received referral fee from second defendant consequent upon the plaintiffs’ investment in the trust — whether the first defendant made misleading oral representations to plaintiffs regarding the unit trust — whether the information memorandum made misleading representations regarding the unit trust — whether the defendants engaged in misleading conduct — whether the defendants committed the tort of deceit — whether the plaintiff relied on any misleading representations in deciding to invest in the unit trust
• 1. EQUITY — Trusts and Trustees — breach of trust — where the second defendant purported to redeem the plaintiffs’ units in the trust in return for units in a different fund which were held in the name of a company controlled by the first defendant — whether plaintiffs gave authority for this “swap” transaction to be implemented — whether second defendant breached the terms of the trust or its duties as trustee in implementing the “swap” transaction — whether third defendant knowingly assisted in breach
• 1. DAMAGES — whether the plaintiffs’ loss should be assessed in accordance with the “rule” in Potts v Miller (1940) 64 CLR 282; [1940] HCA 43 — whether the plaintiffs were “locked into” their investment in the unit trust by reason of the defendants’ misleading conduct — whether break in chain of causation by reason of the “swap” transaction — whether interest earned by the plaintiffs should be brought to account to reduce quantum of loss

Quick Take