Ng v Chan [2020] NSWSC 954

Ng v Chan [2020] NSWSC 954

The defendant, Josh Chan, engaged in misleading and deceptive conduct and fraud by making and authorising false representations regarding SHS Law's profitability, expansion, stability, and future plans, which induced the plaintiff to invest and pay $430,000 for shares now worthless. The intermediary acted as the defendant's agent in representations and receipt of funds. Relief was granted for rescission and repayment of the total purchase price, plus interest.

Parties
Plaintiff: Cedric Ng; Defendant: Josh Chan
Jurisdiction
Australia
Judgment Date
27 July 2020
Procedural Posture
Principal Judgment / Final Judgment
Outcome
Misleading and deceptive conduct and fraud found. Contracts voided. Judgment for plaintiff.
Legal Topics
Misleading and Deceptive Conduct, Fraudulent Misrepresentation, Sale of Shares, Agency, Damages, Rescission
Equity Contract Misleading and Deceptive Conduct Fraudulent Misrepresentation Sale of Shares Agency Damages Rescission

Case Brief

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Parties

Cedric Ng

Plaintiff

Josh Chan

Defendant

Procedural Posture

Principal Judgment / Final Judgment

Legal Issues

  1. 1 Whether the defendant engaged in misleading and deceptive conduct regarding the sale of shares in SHS Law Pty Ltd
  2. 2 Whether the defendant made fraudulent misrepresentations to induce the plaintiff to invest
  3. 3 Whether sums paid by the plaintiff (or his father) to the defendant and intermediary were recoverable

Ratio Decidendi

The defendant, Josh Chan, engaged in misleading and deceptive conduct and fraud by making and authorising false representations regarding SHS Law's profitability, expansion, stability, and future plans, which induced the plaintiff to invest and pay $430,000 for shares now worthless. The intermediary acted as the defendant's agent in representations and receipt of funds. Relief was granted for rescission and repayment of the total purchase price, plus interest.

Court Disposition

Misleading and deceptive conduct and fraud found. Contracts voided. Judgment for plaintiff.

Orders

  • Declare contracts for plaintiff's purchase of shares in SHS Law Pty Ltd from defendant made in July 2016 and May 2017 are void.
  • Order defendant to pay plaintiff $430,000.