Having used a tradesman as front to finance property developments, Lenotre Low was required to compensate him when demanding an Auckland property be handed over.
The High Court was told of property developer Lenotre Low developing multiple sites as part of Auckland’s Glen Innes redevelopment. Mr Low kept a very low profile, using acquaintances together with his son, university student Gabriel Low, as signatories on all the paperwork. Struggling to get mortgage finance, Lenotre Low had builder Xingwei Du lend his name to finance a property on Epping Street. Documents signed had Mr Du agree to buy Epping Street at $1.2 million whilst also signing a declaration of trust agreeing to transfer title to Mr Low’s son Gabriel when demanded. Mr Low put up $255,000; the balance a bank loan in Mr Du’s name. The property was then tenanted, with rent used to meet loan commitments.
Some twenty months after the Epping Street purchase, a lawyer’s letter demanded title be transferred from Mr Du to Gabriel Low. Mr Du refused. He said unwinding the deal was conditional on agreement to a joint venture project between himself and Lenotre Low. Associate judge Bell ruled reference to a proposed joint venture in the declaration of trust was too vague to be enforceable. But Mr Du was entitled to payment for his time as trustee, holding title to Epping Street. Transfer of title to Gabriel was delayed pending payment into court of $89,000 claimed as trustee expenses. The actual amount to be paid Mr Du requires agreement between the warring parties; failing that another court hearing.
Low v. Du – High Court (13.03.20)
20.058