In 2020, Jihong Lu died in Taiwan. In Auckland he had a reputation for throwing money around like confetti; staging a dismally unsuccessful musical at Sky City casino and extravagantly refurbishing the 22.7 metre MV Templaravailable for charter. His New Zealand estate is insolvent. Who owns MV Templar was disputed.
In his will signed just prior to death, Mr Lu described MV Templar as being worth three million dollars. Lu family members claim the vessel was never owned by Mr Lu. He purchased it with family money and was never the owner, they said.
The High Court was told Lu family holds considerable assets through a group of companies known generally as the Templar Group. Jihong Lu had management control of Templar Group with general licence to use Templar money as he saw fit to advance family financial interests. Transactions were poorly documented. Money was drawn down from various Templar companies as and when needed.
Administrator of Jihong Lu’s estate alleged MV Templar was a personal asset of Mr Lu which had been subsequently sold to a company in the Templar Group but never paid for. $2.97 million remained unpaid, he said.
In the High Court, Associate judge Andrew ruled the legal and commercial documentation set out a clear trail: Mr Lu purchased MV Templar in his own name in two tranches between 2016 and 2017; spent his own money on fitting out the vessel for luxury charters; then in 2018 transferred the vessel to a newly formed Templar subsidiary called MY Templar Ltd but was never paid. Result: MY Templar Ltd owed Mr Lu’s estate $2.97 million.
The High Court was told the vessel was sold by agreement prior to trial for $800,000, with sale proceeds held in trust pending the outcome. MY Templar Ltd is now in liquidation, insolvent. Evidence was given that Templar Group has separately filed a claim against Jihong Lu’s estate for $5.6 million, money allegedly lent to Mr Lu.
MY Templar Ltd v. Parsons – High Court (26.05.22)
22.092