It started with May Kam Kiu Sheath asking her then seventy year old neighbour for a loan to bail her estranged husband from jail. Over the years, requests for loans grew more frequent. The High Court has ordered her repay $589,450 to a former Remuera neighbour who is now aged 82 and living in a retirement village.
The High Court was told of repeated failures by Ms Sheath to repay borrowed monies and subsequent failures to make repayments required by an agreed repayment schedule.
Ms Sheath befriended her neighbour when at home raising two young children while her husband worked long hours, operating a wine bar. The first request for a loan came after Ms Sheath had separated from her husband and she was seeking funds to post bail when he was imprisoned in Australia. The neighbour continued to assist financially over a period of several years, believing Ms Sheath’s Hong Kong parents were extremely wealthy. In the six years to 2014, Ms Sheath borrowed $400,000. There were always reasons offered explaining failures to repay. Sporadic partial repayments were made.
In November 2015, there were attempts to put all previous loans on a more formal footing with written agreement as to how much was owed, provision for interest and fixed repayment dates. Repayment deadlines were not met, resulting in loans being rolled over and new repayment terms agreed. A December 2020 written agreement fixed the full amount then due and set out a schedule of monthly payments. Only one scheduled payment of $10,000 was made, and that was paid late.
In the High Court, Justice Woolford entered judgment against Ms Sheath for $589,450 unpaid. She did not attend the court hearing.
Goldstone v. Sheath – High Court (7.07.21)
21.116