Liu v Xiao

The case of Liu v Xiao involves a dispute between two Chinese nationals, where the plaintiff seeks interim preservation orders to prevent the dissipation of assets. The matter was heard in the Supreme Court of Queensland. The plaintiff, Liu, alleges that she paid the defendant, Xiao, money for a share in several Chinatown restaurant businesses. Liu claims she received no share in the businesses and seeks to prevent Xiao from disposing of the funds or the businesses until the matter is resolved.

The court was required to determine whether the plaintiff had established a good arguable case on the limited evidence presented and whether there was a real risk that the defendant would dissipate or remove the assets from the jurisdiction. The court considered the timing of the last payment, which was made almost a year ago, and the lack of evidence that the funds had been dissipated or removed since that time. The plaintiff argued that the risk of dissipation remained due to the length of time elapsed since the last payment and the nature of the businesses involved.

The court found that while the plaintiff had established a good arguable case, there was insufficient evidence to demonstrate a real risk of dissipation or removal of the assets. The absence of evidence regarding the current whereabouts of the funds or any actions by the defendant to dissipate the assets weighed against making the orders. Consequently, the application for interim preservation orders was refused. The court did not make any orders in relation to the application.