Robert Luo and Anny Yip needed High Court assistance to extricate themselves from a Pokeno land development alleging Annie Shiu had dishonestly locked them into a long-term project with false promises they would share in profits. Ms Shiu was ordered to pay them $2.6 million; this in addition to $2.5 million Annie had already paid Robert Luo in the middle of the High Court hearing.
Over Christmas dinner in December 2016, Annie Shiu, also known as Annie Chen, discussed with Mr Luo the possibility of him joining her in subdividing land at Pokeno just south of Auckland City boundary. He was a recent immigrant to New Zealand. Together with other investors, he agreed to help fund purchase of properties in separate titles on Helenslee Road. Subsequently, Ms Shiu approached Ms Yip about further purchases in the area and Ms Yip agreed to fund the purchase of more land on Helenslee Road. At this point, neither Mr Luo nor Ms Yip knew of the other’s existence. Both claimed the deal each was offered involved a profit share in Ms Shiu’s intended residential property development. Consolidation of land titles in Pokeno west would enable development of 1600 residential sections.
The High Court was told Ms Shiu denied there was any joint venture partnership. The investors were only providing long-term debt finance with any joint venture agreement extending only as far as getting the land rezoned residential, she said.
Justice Whata ruled Ms Shiu was in breach of the Fair Trading Act. She extracted from both Mr Luo and Mr Yip several hundred thousand dollars for what she described as brokerage fees or commissions payable to a broker for setting up the respective deals. This was dishonest. No fees were payable. In 2021, Ms Shiu was convicted on two charges of obtaining by deception.
Ms Shiu also falsely represented to both Mr Luo and Ms Yip that they would share in development profits when there was no intention to involve them as profit-sharing partners, Justice Whata said.
Annie Shiu was ordered to repay $1.04 million to Mr Luo (a balance of $632,800 lent for the project plus interest of $407,200) and $1.6 million to Ms Yip’s investment company (being $1.5 million provided for land purchased and $131,000 in interest).
Luo v. Shiu – High Court (21.12.21)
22.026