Background:
The case involved a dispute over a property in Richmond, BC, purchased in 2016 for $2,708,000. Plaintiffs Metath Investment Co., Ltd., Haijian Liu, and Sino Kingshine International Investment Ltd. alleged that the property, held in the name of defendant Zhi Quan Zhu, was purchased using funds provided by the plaintiffs and held in trust for them. Defendants Chu Qi Zhu and Hong Yang, along with Zhi Quan Zhu, argued the funds were a gift, claiming ownership of the property. The plaintiffs had registered a Certificate of Pending Litigation (CPL) on the property in 2018 after the romantic relationship between Haijian Liu and Chu Qi Zhu ended.

Legal Issues:
The defendants applied under Section 252 of the Land Title Act to cancel the CPL, citing a lack of formal litigation steps for over a year. The court considered:

• Whether the delay was justifiable.
• Whether the CPL caused prejudice to the defendants.
• Whether the plaintiffs’ claim for a trust had a reasonable prospect of success.

Decision:
The court dismissed the application to cancel the CPL, finding that the plaintiffs’ claim had a reasonable prospect of success and that no actual prejudice to the defendants was demonstrated. The existence of $1.5 million in excess funds further mitigated financial strain claims.

Award:
The court awarded costs to the plaintiffs as the successful party. Financial terms were not specified.