Lao & Zeng

The case of Lao & Zeng involves a property settlement dispute under the Family Law Act 1975 (Cth) between the husband and wife, with the wife's mother, the applicant, also a party to the proceedings. The husband sought an order for litigation funding from the primary judge, which was granted, leading to the applicant's appeal against the interlocutory order for litigation funding. The legal issues that arose were whether the primary judge erred in granting the husband's application for litigation funding and if the applicant had established good reason to suspect an error was made at first instance. The applicant argued that the husband's claim for setting aside the wife's transfer of assets to her was weak and that there was sufficient evidence against it, while the husband contended that he had an arguable case for substantive relief that deserved to be heard. The court found that the primary judge did not err in granting the litigation funding and that the applicant had not established good reason to suspect an error was made. The strength of the husband's claim was considered arguable, and the evidence on the interlocutory application easily surmounts the threshold of an arguable case for substantive relief that deserved to be heard. The appeal was dismissed, and the husband was awarded party/party costs from the applicant.