A rap over the knuckles for New World, ordered to pay the full legal costs of Shaojun Wang who needed court assistance to extract her Auckland property from a forced sale triggered by the supermarket’s claim that Wang was simply hiding assets owned by a former New World employee who had stolen over $300,000.
Ms Wang was dragged unwillingly into New World’s orbit after its employee Qian Zhang was ordered to repay money stolen from the supermarket chain. Looking to recover its losses, New World registered a charging order over an investment property in Auckland suburb Hillcrest recorded in Zhang’s name. New World refused to accept that Ms Wang was the beneficial owner, with Zhang on the title as trustee. When New World took steps to sell, Ms Wang was forced into court.
The High Court was told Ms Wang and Zhang both provided cash contributions which together with an ASB mortgage funded their 2016 purchase of the property. One year later, the two agreed Ms Wang would buy out her partner. She paid $70,000 to buy out Zhang’s share of the equity. There was no dispute that this was a fair market price. Both signed a deed acknowledging that during such time as Zhang’s name remained on the title, Ms Wang was the sole owner. This paperwork was drawn up at a time when New World was about to take legal action against Zhang. There was no evidence that Ms Wang was aware of Zhang’s New World thefts. New World refused to accept that Zhang no longer had any financial interest in the Hillcrest property. New World’s unsuccessful argument that Zhang’s shared liability on the ASB mortgage amounted to an interest in the Hillcrest property was taken all the way to the Court of Appeal.
Justice Peters criticised New World for failing to properly consider all the evidence provided by Ms Wang’s solicitors and for pursuing a forced sale in the face of clear evidence as to Ms Wang’s sole ownership. Ms Wang was entitled to recover her legal costs in full, Justice Peters ruled. The court was told she had spent over $55,000 in legal costs blocking New World’s forced sale.
New World (New Zealand) Ltd v. Wang – High Court (20.04.23)
23.051