Haiqin Lu v Qindi Shen; Weiren Jin v Qindi Shen

The case of Haiqin Lu v Qindi Shen and Weiren Jin v Qindi Shen involved a dispute over loan agreements between family members. The matter was heard in the Supreme Court of New South Wales. The plaintiffs, Haiqin Lu and Weiren Jin, sought to enforce loan agreements against the defendant, Qindi Shen. The primary issues before the court were whether the loan agreements were valid, whether they were procured by misleading or deceptive conduct, and whether their enforcement would be unconscionable.

The court found that there was no substantial probative weight to be attached to the testimonial evidence due to the significant passage of time between the material events and the trial, as well as the strong self-interest and emotional investment of the witnesses. Despite this, the court determined that the loan agreements took effect as deeds, as there was no credible evidence to suggest that the formal requirements of signing were not met. Both parties had received legal advice on the terms of the deeds, and the defendant demonstrated agreement by signing the executed deeds. Therefore, no misleading or deceptive conduct was established.

In relation to the interest rate, the plaintiffs conceded that simple interest at 18% per annum would apply, and the court held that the deeds were not unconscionable in this respect. The court also found that the equitable charges granted by the deeds extended to future properties, not just those owned at the date of the deeds. Consequently, the plaintiffs were entitled in principle to an order for judicial sale. However, the court found no evidence of a compromise between the parties, and thus the plaintiffs' claims for discharge of liabilities were unsuccessful.

The court ordered that the deeds be enforced as per their terms, including the right to a judicial sale of the relevant properties. The claims for a discharge of liabilities were dismissed.