Li v 110 Formosa (NZ) Limited [2019] NZHC 1083

Li v 110 Formosa (NZ) Limited [2019] NZHC 1083

On the balance of probabilities the plaintiff was the beneficial owner of the $4.8m; resulting trust and breach of contract remedies were available against Meng Wang in respect of the portion of his shareholding reflecting that contribution; claims for an institutional constructive trust over the underlying property and most other pleaded causes failed; costs are to be assessed under High Court Rules as Category 2 with awards and adjustments made to reflect partial success, unreasonable pleading/conduct and specific disbursement limitations; settlement privilege under s57 Evidence Act cannot be unilaterally waived and only part of the 2015 communication was waived by plaintiff's...

Citation
[2019] NZHC 1083
Parties
Plaintiff: Jun Li; First Defendant: 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 Defendant: Loo & Koo
Court
High Court
Jurisdiction
New Zealand
Judgment Date
17 May 2019
Procedural Posture
Civil – Trust, Contract and Property Dispute / Costs Determination Following Substantive Judgment (post Trial/costs Judgment)
Outcome
Costs orders made against and in favour of various parties after trial: plaintiff partially successful against second defendant; costs awards adjusted, some disbursements disallowed or reduced; indemnity costs denied; modest Bullock contribution ordered from second defendant to successful defendants' costs.
Legal Topics
Constructive Trust, Resulting Trust (quistclose), Breach of Contract, Fiduciary Duty and Knowing Assistance, Dishonest Assistance, Costs Orders and Indemnity Costs, Sanderson/bullock Orders, Settlement Privilege and Waiver
Equity and Trusts Contract Civil Procedure Property Law Constructive Trust Resulting Trust (quistclose) Breach of Contract Fiduciary Duty and Knowing Assistance +4 more

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Parties

Jun Li

Plaintiff

110 Formosa (NZ) Limited

First Defendant

Meng Wang

Second Defendant

Dingzhi Huang

Third Defendant (discontinued)

Golden Beachlands Holdings Limited

Fourth Defendant

Jenny and Eamon Holdings Limited

Fifth Defendant

Loo & Koo

Sixth Defendant

Procedural Posture

Civil – Trust, Contract and Property Dispute / Costs Determination Following Substantive Judgment (post Trial/costs Judgment)

Legal Issues

  1. 1 Was the plaintiff the beneficial owner of the $4.8 million deposited?
  2. 2 Whether resulting or constructive trust remedies arose in plaintiff's favour
  3. 3 Whether fiduciary duties or dishonest assistance were established against defendants

Ratio Decidendi

On the balance of probabilities the plaintiff was the beneficial owner of the $4.8m; resulting trust and breach of contract remedies were available against Meng Wang in respect of the portion of his shareholding reflecting that contribution; claims for an institutional constructive trust over the underlying property and most other pleaded causes failed; costs are to be assessed under High Court Rules as Category 2 with awards and adjustments made to reflect partial success, unreasonable pleading/conduct and specific disbursement limitations; settlement privilege under s57 Evidence Act cannot be unilaterally waived and only part of the 2015 communication was waived by plaintiff's...

Court Disposition

Costs orders made against and in favour of various parties after trial: plaintiff partially successful against second defendant; costs awards adjusted, some disbursements disallowed or reduced; indemnity costs denied; modest Bullock contribution ordered from second defendant to successful defendants' costs.

Orders

  • Costs awarded to Jun Li against Meng Wang assessed on High Court Rules Category 2B scale, reduced by 20% to reflect partial success and conduct; disbursements awarded but excluding fees of Jai Basrur and Mr Moore and allowing $15,000 for valuation expert Seagar.
  • Costs awarded to 110 Formosa (First Defendant) against Jun Li assessed on Category 2B scale plus disbursements ($220 filing fee accepted); no uplift for increased or indemnity costs.