Yakun Shao v Qian Peng and Others [2016] NSWSC 1444

Yakun Shao v Qian Peng and Others [2016] NSWSC 1444

All monies loaned to Crown came from Ms Shao, and although the loan agreement named both Ms Shao and Mr Peng as lenders, Mr Peng had no right under the agreement and no consent from Ms Shao to have the repayment made to him alone or sent to third parties. On receipt of the Crown funds he became obliged to account to Ms Shao and held the monies on trust for her; by dispersing them for his own or his family's benefit he remained liable to reinstate them. Separately, the evidence established a contract made on 11 August 2015 under which Ms Shao discontinued proceedings in return for Mr Peng's promise to repay $600,000 withdrawn from the CBA offset account, and Mr Peng breached that agreement...

Jurisdiction
Australia
Judgment Date
11 October 2016
Procedural Posture
Equity Expedition List / Ex Parte Hearing After Defendant Filed a Submitting Appearance
Outcome
Ms Shao was entitled to reinstatement of the monies Mr Peng received from Crown and to judgment for the outstanding $140,000 from the CBA offset account withdrawal.
Legal Topics
['breach of Trust' 'repayment of Trust Monies' 'equitable Debt' 'joint Loan Repayment' 'joint Bank Account Withdrawal' 'agreement to Repay Money']
['equity' 'contract'] ['breach of Trust' 'repayment of Trust Monies' 'equitable Debt' 'joint Loan Repayment' 'joint Bank Account Withdrawal' 'agreement to Repay Money']

Case Brief

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Procedural Posture

Equity Expedition List / Ex Parte Hearing After Defendant Filed a Submitting Appearance

Legal Issues

  1. 1 ["Whether Mr Peng was obliged to account to Ms Shao for the repayment received from Crown Global Capital Pty Limited after nominating his own bank account without Ms Shao's consent." 'Whether Mr Peng held the Crown repayment monies on trust for Ms Shao and breached that trust by paying them to his father and step-mother in China.' 'Whether Mr Peng breached an agreement made on 11 August 2015 to repay $600,000 withdrawn from the CBA offset account, leaving $140,000 outstanding.']

Ratio Decidendi

All monies loaned to Crown came from Ms Shao, and although the loan agreement named both Ms Shao and Mr Peng as lenders, Mr Peng had no right under the agreement and no consent from Ms Shao to have the repayment made to him alone or sent to third parties. On receipt of the Crown funds he became obliged to account to Ms Shao and held the monies on trust for her; by dispersing them for his own or his family's benefit he remained liable to reinstate them. Separately, the evidence established a contract made on 11 August 2015 under which Ms Shao discontinued proceedings in return for Mr Peng's promise to repay $600,000 withdrawn from the CBA offset account, and Mr Peng breached that agreement...

Court Disposition

Ms Shao was entitled to reinstatement of the monies Mr Peng received from Crown and to judgment for the outstanding $140,000 from the CBA offset account withdrawal.

Orders

  • ["Mr Peng is liable to reinstate the whole of the monies he received from Crown and used for his own or his family's benefit." 'Judgment for Ms Shao for the outstanding amount of $140,000.']