With no written agreement for their multiple property developments and with movements of money between accounts not clearly documented, two Asian investors are in court arguing over who owns what.
Lin Luo and Qian Jin dispute ownership of multiple property developments in Auckland, Hamilton and Rotorua. Legal title to the properties were taken variously in the names of Ms Luo, Mr Jin and related companies. Their various projects kicked off in 2011, in part through a company called W & L Ltd. Ms Luo was sole shareholder and director, but acknowledges Mr Jin has a fifty per cent interest in the company. The High Court was told Mr Jin was kept off the share register because he was not a New Zealand resident at the time joint venture operations started. Four years later, their business relationship fell apart.
A court hearing to settle ultimate ownership of all disputed properties is scheduled for later this year. Meanwhile, Ms Luo was in court defending her right to lodge a caveat over a property on Farnworth Avenue in Rotorua registered in the name of Mr Jin. Her caveat has the effect of blocking any dealing in the land until their dispute is sorted out. Mr Jin says Farnworth Avenue is not part of their joint venture projects; Ms Luo says she put money into Farnworth. Their dispute is complicated by the fact Farnworth’s subdivision and redevelopment was initially a project jointly undertaken by Mr Jin and a Mr David Lee who was then in a de facto relationship with Ms Luo.
Associate judge Gardiner ordered the caveat remain. There was evidence Ms Luo had contributed some $237,000 to Farnworth: redevelopment costs, mortgage payments and payment of rates. A full court hearing is needed to identify whether this funding was a loan (as Mr Jin claims) or a contribution to joint venture expenditure (as Ms Luo claims) entitling her to share in Farnworth profits.
Luo v. Jin – High Court (31.03.21)
21.063