Commercial Litigation – property investments
Mr Chan was a successful entrepreneur in China who entered into joint venture agreements with Mr Smith with respect to property developments in Western Australia.
After the first project, Mr Smith invited Mr Chan to roll over his capital and profits, in excess of $1 million, from the first project into a second property development project.
After the second project, from which multi-millions of profits were made, Mr Smith again invited Mr Chan to roll over his project monies into a third property development project. Mr Chan disagreed and requested to have his capital and profits from the projects returned to him.
Mr Smith refused. To the surprise of Mr Chan, Mr Smith secretly removed Mr Chan as a director of the company and meanwhile issued more shares to himself.
Mr Chan engaged our firm to assist him to recover his capital and the agreed profits. Over the years, Mr Chen has invested approximately $1.2 million into the projects.
We were instructed by Mr Chan to commence proceedings in the Supreme Court against Mr Smith to recover his capital and the agreed profits.
Simultaneously, we assisted Mr Chan to successfully obtain a Freezing Order against Mr Smith which prevented Mr Smith from disbursing his personal assets as well as assets (including substantial amount of cash) held by the company.
Mr Chan and Mr Smith were unable to reach an out of court settlement and the dispute had to be determined by the Supreme Court after a 10 days trial.
Mr Chan was successful in obtaining judgments from the Supreme Court in his favour for a sum in excess of $3.1 million, plus recovering $300,000 in legal costs.