Background:
Shu Rong Zhang, with limited business experience, invested in real estate with Ming Hu, a friend of her son, and Cuiguo Lin, Hu’s father-in-law. The case focused on two properties: the Langley Farmland and the Surrey Bareland. Zhang and Hu each contributed $809,261.51 towards the Surrey Bareland, while Lin managed the property. Disputes arose when Lin and Hu placed unauthorized mortgages on the Surrey Bareland to finance other investments without Zhang’s consent.

Legal Issues:
The central issue was whether Lin and Hu breached fiduciary duties by placing these mortgages and whether Lin was entitled to claim the mortgage principal as part of his financial contribution, thereby increasing his share of the profits. Zhang sought sole ownership of the Surrey Bareland and compensation.

Real Estate Disputes:
Zhang held an unregistered 50% interest in the Surrey Bareland, with Hu as the registered owner. The court examined the Second Cooperation Agreement, which restricted Lin’s profit to a 10% management fee, rejecting his claim to the mortgage principal as an investment.

Credibility and Judgment:
Justice Funt ruled in favor of Zhang, determining that Lin and Hu were not credible witnesses due to their misleading actions regarding the property’s sale. Zhang was awarded sole ownership of the Surrey Bareland upon fulfilling certain financial conditions.

Costs and Award:
Zhang was granted her requested relief, though the exact amount of costs or awards was not specified.