Li v Ye (No 2)

The case of Li v Ye (No 2) was heard in the Supreme Court of New South Wales. The plaintiffs, Mr Li and his companies, sought to recover various sums of money from the defendants, Mr Ye and his companies, as well as an accounting of profits. The claims related to alleged breaches of fiduciary duty, misuse of corporate assets, and other breaches of statutory and common law obligations. The defendants denied all allegations, asserting that the plaintiffs had no legitimate claims and that the defendants had acted properly in all respects.

The court was required to determine several key legal issues, including whether the defendants had breached any fiduciary duties owed to the plaintiffs, whether there had been any misuse of corporate assets, and if so, what sums were owed by the defendants to the plaintiffs. The court also needed to consider the appropriate quantum of damages, if any, and the allocation of costs between the parties.

In its decision, the court found that while the plaintiffs had established that certain sums were owing to them by the defendants, this finding was of little practical value as all the companies involved were already in liquidation. The court determined that the defendants had breached their fiduciary duties and misused corporate assets, but concluded that the plaintiffs had not suffered any loss as a result of these breaches. The court awarded the plaintiffs nominal damages of $1 in recognition of the breaches but found that the plaintiffs were not entitled to any additional damages or an accounting of profits. The court also ordered the defendants to pay the plaintiffs' costs of the action, but reduced the amount by 20% due to the plaintiffs' failure to establish a significant loss.

In summary, the court held that the defendants had breached their fiduciary duties and misused corporate assets, but that the plaintiffs had not suffered any loss as a result. The court awarded nominal damages of $1 and ordered the defendants to pay the plaintiffs' costs, reduced by 20%.