Liu v Chan

In the case of Liu v Chan, the plaintiff, Cheng Bin Liu, sought to lift a stay of proceedings that was previously ordered on 18 June 2020. Mr Liu also sought an extension of time to comply with the orders, which were resisted by all defendants. The plaintiff, a businessman living in China, alleged that in 2009, he entered into an agreement with the first defendant, Stanley Kin Chan, to facilitate his family's emigration to Australia. Liu claimed that sums of money were paid to Chan for acquiring real estate in Australia, which were subsequently misappropriated. The defendants disputed Liu's claims and alleged different versions of the underlying agreement. The case revolved around the proper disclosure of documents, particularly relating to the building projects and the involvement of Chengdu Dacheng Real Estate Co Ltd (CDRE). The court found that Liu had not made proper disclosure of documents and ordered him to serve a list of documents and deliver copies of each document to the defendants.

The legal issues in this case were whether the stay should be dissolved, whether the time for compliance should be extended, and whether further compliance should be excused. The court considered that there had been substantial compliance with the orders made in March 2020, but Liu remained in breach of the orders. The court found that there was no reason to discharge the orders made in March 2020, and it was not necessary to extend the time for compliance, as Liu remained in breach. The court also found that the stay should be dissolved, as Liu had not fulfilled his obligations to make disclosure and his assertion that he had no control over CDRE was found to be false.

The court ordered that the stay of proceedings ordered on 18 June 2020 be dissolved, the application for an extension of time be dismissed, and the plaintiff pay the defendants' costs of both applications on the indemnity basis. This case highlights the importance of proper disclosure of documents in civil proceedings and the consequences of failing to comply with court orders.