Shumin Li v Han Li

Shumin Li commenced proceedings against Han Li in the Supreme Court of New South Wales, seeking repayment of a debt. The proceedings were discontinued, and fresh proceedings were commenced by consent. Han Li sought to have the fresh proceedings dismissed on the basis that they were an abuse of process, and alternatively, that they were statute-barred. Shumin Li argued that the debt was not statute-barred as the limitation period had not expired and that interest payments constituted confirmation of the debt. The court was required to determine whether the fresh proceedings were an abuse of process, and if not, whether the debt was statute-barred and if interest was repayable on the loans.

The court found that the fresh proceedings were not an abuse of process, as they were commenced with the consent of both parties. The court also found that the limitation period had not expired, as the payment of interest constituted confirmation of the debt. The court held that interest was repayable on the loans, as it was an implied term in fact. The court ordered that the fresh proceedings be dismissed, and that there be judgment and verdict for the plaintiff against the defendant in the sum of $315,005.26, with interest from 21 November 2019. The court also made orders regarding the issue of costs.