Quantum Investments (Aust) Pty Ltd & Ors v Zhi Wei Lin trading as Jack Lin [2022] NSWSC 1387

Supreme Court New South Wales

Medium Neutral Citation: Quantum Investments (Aust) Pty Ltd & Ors v Zhi Wei Lin trading as Jack Lin [2022] NSWSC 1387 Hearing dates: 15-16 September 2022; 19-21 and 23 September 2022 Date of orders: 14 October 2022 Decision date: 14 October 2022 Jurisdiction: Equity - Commercial List Before: Black J Decision: Several plaintiffs succeed in their claims and one plaintiff fails in his claim. Parties to be heard on quantification. Catchwords: CONSUMER LAW — Misleading or deceptive conduct — Representations as to future matters — Where the plaintiffs loaned funds on an unsecured basis to the defendant's company in relation to the purchase and development of certain land as a residential apartment building — Where the defendant's company on-lent the funds to another company to conduct the project, also without taking security — Where each plaintiff pleads multiple misleading representations were made by the defendant in relation to the loan, including as to the use of the funds by the borrowing company, the existence of security, guarantees as to repayment, and the risk of the loans. Legislation Cited: Competition and Consumer Act 2010 (Cth), Sch 2 ss 4, 18, 236(1). Cases Cited: - Armagas Ltd v Mundogas SA [1985] 1 Ll R 1 Butcher v Lachlan Elder Realty Pty Ltd (2004) 218 CLR 592; [2004] HCA 60 - Campbell v Backoffice Investments Pty Ltd (2009) 238 CLR 304; [2009] HCA 25 - Changizi v Rizaie [2021] NSWSC 613 - Dawson v LNG Holdings [2008] NSWSC 137 - Fabcot Pty Ltd v Port Macquarie-Hastings Council [2011] NSWCA 167 - Gates v City Mutual Life Assurance Society Ltd (1986) 160 CLR 1; [1986] HCA 3 - Gould v Vaggelas (1985) 157 CLR 215 - Hoy Mobile Pty Ltd v Allphones Retail Pty Ltd (No 2) [2008] FCA 810 - John Holland Pty Ltd v Kellogg Brown & Root Pty Ltd [2015] NSWSC 451 - Marks v GIO Australia Holdings Ltd (1998) 196 CLR 494; [1998] HCA 69 - Miller & Associates Insurance Broking Pty Ltd (ACN 089 245 465) v BMW Australia Finance Ltd (ACN 007 101 715) (2010) 241 CLR 357; 270 ALR 204; [2010] HCA 31 - No 1 Victoria Dragons Pty Ltd v AEN Developments Pty Ltd [2022] NSWSC [ ] - OXS Pty Ltd v Sydney Harbour Foreshore Authority [2016] NSWCA 120 - Pramoko v Grande Enterprises Ltd (2016) 108 ACSR 469 - Re Atlas Advisors Australia Pty Ltd [2022] NSWSC 705 - Re Australian International Yacht Club Pty Limited [2021] NSWSC 586 - Re Colorado Products Pty Ltd (in prov liq) (2014) 101 ACSR 233; [2014] NSWSC 789 - Traderight (NSW) Pty Ltd v Bank of Queensland Ltd [2015] NSWCA 94 - Varma v Varma [2010] NSWSC 786 - Ventouris Enterprises Pty Ltd v Dib Group Pty Ltd [2010] NSWSC 963 - Watson v Foxman (1995) 49 NSWLR 315 Category: Principal judgment Parties: Jinbiao Zheng (Second Plaintiff) Qihua Shen (Third Plaintiff) Xiaochu Luo (Fourth Plaintiff) Dr Wi Yang (Fifth Plaintiff) Xiaofeng Qian (Sixth Plaintiff) Moral Success Developments Ltd (Ninth Plaintiff) Zhi Wei Lin aka Jack Lin (Defendant) Representation: Counsel: A Katsoulas (Second-Sixth and Ninth Plaintiffs) J Mitchell/N Seow (Defendant)