Background: The case "Xia v. Hummingbird Cove Lifestyles Ltd." involved plaintiffs Sun Guo Cai and Wang Xia, who sought approximately $10 million from multiple defendants, including Hummingbird Cove Lifestyles Ltd., Pacific Aquaculture International Inc., and Trinity Agriculture Inc. The plaintiffs claimed these funds were loans made to support shellfish farming businesses on the Sunshine Coast, British Columbia, from 2014 to 2018.

Legal Arguments/Issues: The plaintiffs argued that their advances were loans that had not been repaid, warranting judgment in their favor and the liquidation of the corporate defendants. The defendants contended that the advances were equalization payments or capital contributions, not loans. A central issue was whether a verbal equalization agreement was made on January 18-19, 2018. The plaintiffs denied any such agreement, while the defendants asserted it was valid and that a handwritten agreement documented it.

Court's Ruling: The court ruled that the summary trial applications were unsuitable due to significant unresolved factual disputes, particularly about the alleged verbal equalization agreement. Justice Stephens found that the conflicts in evidence and credibility issues required a full trial. The petition seeking the liquidation and winding up of the corporate defendants was referred to the trial list. The plaintiffs were granted leave to amend their notice of civil claim to update the loans asserted to be outstanding.

Costs/Damages Awarded: The court awarded costs to the defendants in the actions and to the responding corporate defendants in the petition proceeding. The specific total amount of costs awarded was not detailed in the judgment.