Liu v. Xing
SHIZHONG LIU
Law Firm / Organization
Weintraub Huang LLP
Lawyer(s)

Rebecca Huang

1000479313 ONTARIO INC.
Law Firm / Organization
Weintraub Huang LLP
Lawyer(s)

Rebecca Huang

SHIZHONG HOLDINGS INC.
Law Firm / Organization
Weintraub Huang LLP
Lawyer(s)

Rebecca Huang

LIU FAMILY TRUST by its Trustee SHIZHONG LIU
Law Firm / Organization
Weintraub Huang LLP
Lawyer(s)

Rebecca Huang

YUNSHEN XING
NAIYU CHAI
CRR CAPTIAL CAPITAL INC.
MEADOWLILY DEVELOPMENT INC.
CRR FOXWOOD INC.
CORNERSTONE REAL ESTATE INVESTMENT LIMITED PARTNERSHIP
CRR FOXWOOD EXETER INC.
CORNERSTONE EXETER LIMITED PARTNERSHIP
FOXWOOD DEVELOPMENTS (LONDON) INC.

Overview

  • The case involves a dispute over $16 million advanced by the Applicants (led by Shizhong Liu) to the Respondents (including Yunshen Xing and Naiyu Chai) for real estate development.
  • The Applicants argue that the funds were secured loans, while the Respondents claim they were investments without security.
  • The Applicants sought an interlocutory proprietary injunction and leave to register a Certificate of Pending Litigation (CPL) on three properties: Meadowlily, Buroak, and Exeter.

Decision

  • The court granted an injunction on Exeter and Meadowlily to prevent their sale or encumbrance until trial.
  • A modified injunction was granted on Buroak, allowing the Respondents to obtain financing only to pay off an existing mortgage.
  • The judge denied the CPL, though stated it would have been granted under the legal test.

Key Legal Findings

  • The RJR-MacDonald test was satisfied: there was a serious issue to be tried regarding an equitable mortgage and unjust enrichment, irreparable harm due to potential loss of security, and the balance of convenience favored the Applicants.
  • WeChat messages and emails indicated that the parties may have agreed to security. The Applicants’ funds flowed through multiple entities controlled by the Respondents.
  • The Statute of Frauds did not bar the claim, as electronic communications may satisfy writing requirements, and part performance applied.
  • The case is expedited for a hearing within six months.
  • No monetary award was granted yet.
Superior Court of Justice - Ontario
CV-24-00725653-0000
Real estate
Applicant