Quantum Investments (Aust) Pty Ltd & Ors v Zhi Wei Lin trading as Jack Lin [2022] NSWSC 1387

Quantum Investments (Aust) Pty Ltd & Ors v Zhi Wei Lin trading as Jack Lin [2022] NSWSC 1387

Several plaintiffs (Mr Zheng, Ms Luo, Mr Wang and Ms Qian, MSD) proved that Mr Lin made misleading assurances guaranteeing repayment and/or assuming responsibility for loan repayment, which were material and causative for their investments. Mr Shen failed to establish that relevant representations caused his loss. Security representations and representations as to absence or minimal risk either were not established or were not causative. Damages must be quantified with adjustment for amounts repaid.

Parties
Second Plaintiff: Jinbiao Zheng; Third Plaintiff: Qihua Shen; Fourth Plaintiff: Xiaochu Luo; Fifth Plaintiff: Dr Wi Yang; Sixth Plaintiff: Xiaofeng Qian; Ninth Plaintiff: Moral Success Developments Ltd; Defendant: Zhi Wei Lin aka Jack Lin
Jurisdiction
Australia
Judgment Date
14 October 2022
Procedural Posture
Equity Commercial List / Principal Judgment, Post Hearing, Interlocutory Orders Pending Quantification
Outcome
Judgment for Second, Fourth, Fifth, Sixth, and Ninth Plaintiffs against Defendant; Third Plaintiff's claim fails; quantification and costs reserved.
Legal Topics
Misleading or Deceptive Conduct, Representations as to Future Matters, Guarantees, Repayment of Loans, Risk Disclosure in Property Lending
Consumer Law Commercial Law Equity Misleading or Deceptive Conduct Representations as to Future Matters Guarantees Repayment of Loans Risk Disclosure in Property Lending

Case Brief

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Parties

Jinbiao Zheng

Second Plaintiff

Qihua Shen

Third Plaintiff

Xiaochu Luo

Fourth Plaintiff

Dr Wi Yang

Fifth Plaintiff

Xiaofeng Qian

Sixth Plaintiff

Moral Success Developments Ltd

Ninth Plaintiff

Zhi Wei Lin aka Jack Lin

Defendant

Procedural Posture

Equity Commercial List / Principal Judgment, Post Hearing, Interlocutory Orders Pending Quantification

Legal Issues

  1. 1 Whether the defendant made misleading or deceptive representations under s 18 ACL
  2. 2 Whether losses suffered by plaintiffs were caused by such representations
  3. 3 Whether the defendant provided guarantees for loan repayment

Ratio Decidendi

Several plaintiffs (Mr Zheng, Ms Luo, Mr Wang and Ms Qian, MSD) proved that Mr Lin made misleading assurances guaranteeing repayment and/or assuming responsibility for loan repayment, which were material and causative for their investments. Mr Shen failed to establish that relevant representations caused his loss. Security representations and representations as to absence or minimal risk either were not established or were not causative. Damages must be quantified with adjustment for amounts repaid.

Court Disposition

Judgment for Second, Fourth, Fifth, Sixth, and Ninth Plaintiffs against Defendant; Third Plaintiff's claim fails; quantification and costs reserved.

Orders

  • Mr Zheng, Ms Luo, Mr Wang and Ms Qian, and MSD to establish quantum of damages taking into account admitted repayments.
  • Costs and further orders to be determined following quantification.