IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY

QUD 115 OF 2003

BETWEEN:

A & D DOUGLAS PTY LTD ACN 008 404 180

FIRST APPLICANT

GRAHAM LESLIE ANDERSEN and HILARY ANDERSEN

SECOND APPLICANTS

YVONNE ELLEN ANDREW

THIRD APPLICANT

DAVID WILLIAM ARMSTRONG

FOURTH APPLICANT

CHERYL LYNETTE BACKWELL and PHILIP ASHLEY RYAN (as executors of the Estate of ELSIE EDITH BACKWELL)

FIFTH APPLICANTS

HEINRICH BAUER and SABINE BAUER

SIXTH APPLICANTS

DONALD BENGSTON

SEVENTH APPLICANT

WILLIAM MALCOLM BRYDEN and MARGARET ANNE BRYDEN

EIGHTH APPLICANTS

FIONA MARY CAMPBELL (as trustee of the F CAMPBELL SUPERANNUATION FUND)

NINTH APPLICANT

FREDERIKA JANE CARSON

TENTH APPLICANT

ROBERT JOHN CHARLES MCINTYRE (as executor of the Estate of ALAN STANSFIELD CHENEY)

ELEVENTH APPLICANT

JAMES DAVID CLADINGBOEL and MARIAN ELSIE CLADINGBOEL

TWELFTH APPLICANTS

KENNETH BARRY DUNCAN and JOAN EDITH DUNCAN (as trustees of the DUNCAN FAMILY SUPERANNUATION FUND)

THIRTEENTH APPLICANTS

LYNETTE KAY HAMATY

FOURTEENTH APPLICANT

KEITH EDWARD HOLMES (as trustee of the MELZTNER TRUST)

FIFTEENTH APPLICANT

PATRICK FYSK HOWDEN

SIXTEENTH APPLICANT

JULLIAN ANNE HUGHES

SEVENTEENTH APPLICANT

INFOTEC M.S. PTY LTD ACN 003 954 523

EIGHTEENTH APPLICANT

JOHN FRASER KENNEDY and VIVIAN JESSICA KENNEDY

NINETEENTH APPLICANTS

MICHAEL COLIN MELLISH

TWENTIETH APPLICANT

WADE RICHARD MELLISH

TWENTY-FIRST APPLICANT

ERIC JAMES MITCHELL and JULIE ANNE MITCHELL

(as trustees of the MITCHELL RETIREMENT FUND)

TWENTY-SECOND APPLICANTS

RONALD JOHN MOHR and MARGARET STEWART MOHR

TWENTY-THIRD APPLICANTS

ALLAN JOHN MORRISON and PATRICIA JOY MORRISON (as trustees of the A & P MORRISON PENSION FUND)

TWENTY-FOURTH APPLICANTS

DELIA MURDOCH

TWENTY-FIFTH APPLICANT

BRIAN CHRISTIAN NIELSEN

TWENTY-SIXTH APPLICANT

KAREN ROSE PARKER

TWENTY-SEVENTH APPLICANT

PETER JOHN PERRING

TWENTY-EIGHTH APPLICANT

KEITH PRINCE

TWENTY-NINTH APPLICANT

ROBERT RITORZE

THIRTIETH APPLICANT

NICOLA SCOTT

THIRTY-FIRST APPLICANT

NARELLE VIDA SHALLARD (as trustee of the C & N SHALLARD SUPERANNUATION FUND)

THIRTY-SECOND APPLICANT

IAN ARCHIBALD STEWART and DOROTHY STEWART

THIRTY-THIRD APPLICANTS

WARREN GEORGE TROTMAN and

CARMEL MYNETTA TROTMAN (as trustees of the WGCM TROTMAN SUPERANNUATION FUND)

THIRTY-FOURTH APPLICANTS

W J & A M LUKE PTY LTD ACN 000 884 266

THIRTY-FIFTH APPLICANT

GRAHAM ROBERT WATT and PATRICIA ANNE WATT

THIRTY-SIXTH APPLICANTS

ANNIE CATHERINE WEBB

THIRTY-SEVENTH APPLICANT

DIETER HOLMAN (in his own right and as executor of the Estate of MILDRED HOLMAN)

THIRTY-EIGHTH APPLICANT

ALICE JOY TANGEY (in her own right and as executor of the Estate of KEVIN HERBERT TANGEY)

THIRTY-NINTH APPLICANT

AND:

LAWYERS PRIVATE MORTGAGES PTY LTD

ACN 010 556 751

FIRST RESPONDENT

JONATHAN JAMES McCARTHY, BRUCE MICHAEL DURIE, PHILIP ASHLEY RYAN and

IAN ALEXANDER NEIL

SECOND RESPONDENTS

ST PAUL INTERNATIONAL INSURANCE COMPANY LIMITED

FIRST CROSS-RESPONDENT

QBE INSURANCE (AUSTRALIA) LIMITED ACN 003 191 035

SECOND CROSS-RESPONDENT

JUDGE:

DOWSETT J

DATE:

12 MAY 2006

PLACE:

BRISBANE

I certify that the preceding two (2) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Dowsett.