Claims by a father that he was a partner in his son’s car importation and repair business and with it was entitled to share in ownership of properties owned by the business came to nought. There was no evidence that a partnership existed. Flows of funds were explicable as family loans and repayments, rather than the father’s contributions of partnership capital.
In October 2000, Yong Sheng Bei was granted permanent residence. Bei’s son, Yaoping Bei, arrived in New Zealand the following year. His aunt already had a business up and running in New Zealand trading as B & Z Trades Company Ltd, primarily importing clothing from China.
The High Court was told B & Z Trades subsequently became the vehicle for Yaoping’s motor vehicle business. Over the years it purchased sites: in Auckland suburbs of Onehunga and Kelston; plus, a further site in Christchurch at Sydenham.
There was no dispute that both father and son worked in the business. What was in dispute was the extent of the father’s involvement.
This came to a head when the two fell out mid-2021 and was exacerbated when Yaoping told his father the Galway Street property in Onehunga was to be sold. His father was living at Galway Street. Evidence was given that B & Z Trades applied to the Tenancy Tribunal, without success, seeking to have Yong Sheng evicted.
In the High Court, Yong Sheng claimed to be a partner in his son’s business and with it part-ownership of all partnership business assets including properties held in the name of B & Z Trades.
Yong Sheng said he was heavily involved in the business: repairing and preparing cars for sale. Yaoping said his father’s involvement was little more than doing odd jobs.
Yong Sheng said he provided cash. The end use of funds being moved between members of the family over a nine year period was heavily disputed. Yong Sheng provided no evidence that payments he made could be viewed as capital contributions towards the claimed partnership.
Associate judge Gardiner ruled there was no evidence a partnership existed. There was no written agreement. There was no evidence of emails, texts or other business records which would provide proof of an oral partnership agreement. There was no evidence of partnership accounts being kept or partnership profits allocated.
Yong Sheng Bei v. B & Z Trades Company Ltd – High Court (31.01.24)
24.047