QU v THE OFFICIAL ASSIGNEE IN THE BANKRUPTCY OF THE PROPERTY OF ZENG [2023] NZHC 917
The court held Ms Zhao liable for dishonest assistance and knowing receipt; quantified damages by deducting the knowing receipt award from the dishonest assistance award to prevent double recovery resulting in $8,585,199 for dishonest assistance and $185,810 for knowing receipt; awarded interest on both sums from 23...
Source-derived case information.
- Citation
- [2023] NZHC 917
- Parties
- First Plaintiff: Jia Jun Qu; Second Plaintiff: Jian Ping Wang; Third Plaintiff: Yan Qu; Fourth Plaintiff: J M Building Materials Company Limited; Fifth Plaintiff: Formoda Real Estate Development Company Limited; Defendant: The Official Assignee in the Bankruptcy of the Property of Jun Zeng; Second Defendant: J & H Development Limited (in Liquidation); Third Defendant: Huiman Zhao
- Court
- High Court
- Jurisdiction
- New Zealand
- Judgment Date
- 24 April 2023
- Procedural Posture
- Civil Equitable Claims Arising in Insolvency and Commercial Transactions / Quantum Determination Following Liability Judgment; Assessment of Damages and Interest
- Outcome
- Judgment for first, second and third plaintiffs against Huiman Zhao on dishonest assistance and knowing receipt with specified sums, interest from 23 February 2017, dismissal of claim relating to Misappropriated Funds, and costs awarded to plaintiffs.
- Legal Topics
- Dishonest Assistance, Knowing Receipt, Bankruptcy, Interest on Money Claims Act 2016, Damages, Costs
Source-derived case record
Summary, issues, holding and outcome
More case intelligence is available
Unlock the full research layer for this judgment.
Parties
Jia Jun Qu
First Plaintiff
Jian Ping Wang
Second Plaintiff
Yan Qu
Third Plaintiff
J M Building Materials Company Limited
Fourth Plaintiff
Formoda Real Estate Development Company Limited
Fifth Plaintiff
The Official Assignee in the Bankruptcy of the Property of Jun Zeng
Defendant
J & H Development Limited (in Liquidation)
Second Defendant
Huiman Zhao
Third Defendant
Procedural Posture
Civil Equitable Claims Arising in Insolvency and Commercial Transactions / Quantum Determination Following Liability Judgment; Assessment of Damages and Interest
Legal Issues
- 1 Whether and in what amount damages should be awarded for dishonest assistance
- 2 Whether knowing receipt damages should be awarded and offset to avoid double recovery
- 3 Appropriate start date and statutory basis for interest
Ratio Decidendi
The court held Ms Zhao liable for dishonest assistance and knowing receipt; quantified damages by deducting the knowing receipt award from the dishonest assistance award to prevent double recovery resulting in $8,585,199 for dishonest assistance and $185,810 for knowing receipt; awarded interest on both sums from 23 February 2017 to payment, calculated under the Interest on Money Claims Act 2016; dismissed the dishonest assistance claim in relation to the Misappropriated Funds; awarded costs of $19,722 to the plaintiffs.
Court Disposition
Judgment for first, second and third plaintiffs against Huiman Zhao on dishonest assistance and knowing receipt with specified sums, interest from 23 February 2017, dismissal of claim relating to Misappropriated Funds, and costs awarded to plaintiffs.
Orders
- Ms Zhao shall pay the first, second and third plaintiffs the sum of $8,585,199 for dishonest assistance in relation to the Flagstaff Land Loans and Flagstaff Construction Loans.
- Ms Zhao shall pay the first, second and third plaintiffs the sum of $185,810 for knowing receipt.
Full Case Text
Judgment text and source record
1 paragraphs
QU v THE OFFICIAL ASSIGNEE IN THE BANKRUPTCY OF THE PROPERTY OF ZENG [2023] NZHC 917[24 April 2023]IN THE HIGH COURT OF NEW ZEALANDAUCKLAND REGISTRYI TE KŌTI MATUA O AOTEAROATĀMAKI MAKAURAU ROHECIV-2015-404-002256[2023] NZHC 917BETWEEN JIA JUN QUPlaintiffAND THE OFFICIAL ASSIGNEE IN THEBANKRUPTCY OF THE PROPERTY OFJUN ZENGDefendantparties continued overHearing: [On the Papers]Appearances: G P Blanchard KC and C Jiang for PlaintiffsJudgment: 24 April 2023Reissued: 11 August 2023JUDGMENT OF EDWARDS J[Quantum]This judgment was delivered by me on 24 April 2023 at 3.30 pmpursuant to r 11.5 of the High Court Rules.Registrar/Deputy RegistrarCounsel/Solicitors:G P Blanchard KC, AucklandTompkins Wake, AucklandBETWEEN JIAN PING WANGSecond PlaintiffYAN QUThird PlaintiffJ M BUILDING MATERIALSCOMPANY LIMITEDFourth PlaintiffFORMODA REAL ESTATEDEVELOPMENT COMPANY LIMITEDFifth PlaintiffAND J & H DEVELOPMENT LIMITED(in Liquidation)Second DefendantHUIMAN ZHAOThird Defendant[1] In my judgment dated 25 November 2022, I found Ms Zhao liable fordishonest assistance in relation to the Flagstaff Land Loans and Flagstaff ConstructionLoans.1 I also found her liable on the knowing receipt cause of action.[2] The judgment was for liability only. I sought further submissions on thequantification of the plaintiffs' loss and in particular the calculation of interest. Furthersubmissions were received by me on 5 April 2023.[3] In light of those submissions, I am satisfied that interest should be awardedfrom 23 February 2017. This is the most beneficial date for Ms Zhao and is therelevant date whether the Judicature Act 1908 or the Interest on Money Claims Act2016 applies. The interest rate shall be calculated in accordance with the Interest onMoney Claims Act.[4] The submissions confirm that the possibility of double recovery may beaddressed by deducting the sum awarded for the knowing receipt cause of action($185,810) from the damages awarded for the dishonest assistance cause of action($8,771,009) leaving a balance of $8,585,199.[5] Accordingly, I enter judgment as follows:(a) Ms Zhao shall pay the first, second and third plaintiffs the sum of$8,585,199 for dishonest assistance in relation to the Flagstaff LandLoans and Flagstaff Construction Loans.(b) Ms Zhao shall pay the first, second and third plaintiffs the sum of$185,810 for knowing receipt.(c) Interest shall accrue on the sums set out in (a) and (b) above from23 February 2017 until the date of payment. The interest rate shall becalculated in accordance with the Interest on Money Claims Act 2016.1 Qu v The Official Assignee in the Bankruptcy of the Property of Zeng [2022] NZHC 3114.(d) The claim for dishonest assistance in relation to theMisappropriated Funds is dismissed.(e) Ms Zhao shall pay the first, second and third plaintiffs' costs anddisbursements in the sum of $19,722.___________________Edwards J