Li v 110 Formosa (NZ) Limited [2018] NZHC 3418

Li v 110 Formosa (NZ) Limited [2018] NZHC 3418

Plaintiff established on the balance of probabilities that the $4.8m deposited was beneficially his and that a resulting trust arose such that the proportion of Defendant Wang's shareholding representing that contribution is held on resulting trust for the plaintiff; plaintiff also established breach of contract by Wang entitling plaintiff to damages equal to the $4.8m contribution; other claims (constructive trust over land, fiduciary duty, knowing assistance, money had and received, negligent statutory breach and claims against 110 Formosa and Loo & Koo) were dismissed; remedies for resulting trust and contractual damages are inconsistent so plaintiff must elect remedy.

Citation
[2018] NZHC 3418
Parties
Plaintiff: Jun Li; First Defendant (registered Proprietor of Formosa Property): 110 Formosa (NZ) Limited; Second Defendant: Meng Wang; Third Defendant (discontinued): Dingzhi Huang; Fourth Defendant: Golden Beachlands Holdings Limited; Fifth Defendant: Jenny and Eamon Holdings Limited; Sixth Defendants (solicitors for Purchaser Entities): Arthur Loo and Fui Loong Chan trading as Loo & Koo Barristers Solicitors Notary Public
Court
High Court
Jurisdiction
New Zealand
Judgment Date
19 December 2018
Procedural Posture
Civil (property / Trust / Contract Dispute) / High Court Judgment After Trial (judgment Delivered 19 December 2018)
Outcome
Plaintiff partially successful: resulting trust declared over portion of Wang's shareholding representing $4.8m and breach of contract by Wang established with damages of $4.8m; all other claims dismissed; plaintiff to elect remedy between resulting trust declaration and damages within prescribed time; further...
Legal Topics
Constructive Trust, Resulting Trust, Quistclose Trust, Knowing Assistance, Money Had and Received, Breach of Contract, Unjust Enrichment, Conveyancing, Beneficial Ownership, Burden of Proof, Costs
Equity/trusts Contract Fiduciary Duty Restitution Negligence Property Law Corporate Law Statutory Regulation (legal Profession) +12 more

Case Brief

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Parties

Jun Li

Plaintiff

110 Formosa (NZ) Limited

First Defendant (registered Proprietor of Formosa Property)

Meng Wang

Second Defendant

Dingzhi Huang

Third Defendant (discontinued)

Golden Beachlands Holdings Limited

Fourth Defendant

Jenny and Eamon Holdings Limited

Fifth Defendant

Arthur Loo and Fui Loong Chan trading as Loo & Koo Barristers Solicitors Notary Public

Sixth Defendants (solicitors for Purchaser Entities)

Procedural Posture

Civil (property / Trust / Contract Dispute) / High Court Judgment After Trial (judgment Delivered 19 December 2018)

Legal Issues

  1. 1 Who beneficially owned the $4.8 million deposited toward acquisition of the Formosa Property?
  2. 2 Whether a constructive trust arose in favour of the plaintiff
  3. 3 Whether a resulting (including Quistclose) trust arose in favour of the plaintiff

Ratio Decidendi

Plaintiff established on the balance of probabilities that the $4.8m deposited was beneficially his and that a resulting trust arose such that the proportion of Defendant Wang's shareholding representing that contribution is held on resulting trust for the plaintiff; plaintiff also established breach of contract by Wang entitling plaintiff to damages equal to the $4.8m contribution; other claims (constructive trust over land, fiduciary duty, knowing assistance, money had and received, negligent statutory breach and claims against 110 Formosa and Loo & Koo) were dismissed; remedies for resulting trust and contractual damages are inconsistent so plaintiff must elect remedy.

Court Disposition

Plaintiff partially successful: resulting trust declared over portion of Wang's shareholding representing $4.8m and breach of contract by Wang established with damages of $4.8m; all other claims dismissed; plaintiff to elect remedy between resulting trust declaration and damages within prescribed time; further...

Orders

  • Declaration that Defendant Meng Wang holds that proportion of his shareholding in 110 Formosa (NZ) Limited representing the $4,800,000 paid by the Plaintiff on resulting trust for the Plaintiff
  • Judgment against Defendant Meng Wang in the sum of NZD 4,800,000 for breach of contract (alternative remedy)