[2025] QSC 52
General information, not legal advice.
Supreme Court of Queensland
2025-03-21
Freeburn J
Original judgment source is linked above.
(a) Mr Ou and Ms Wang had an intimate relationship in about 2012 and 2013 in China, and thereafter they remained in contact;
(b) in about March 2023, by means of a series of WeChat messages exchanged in Mandarin, Mr Ou agreed to sell his property in St Lucia to Ms Wang for $1.5 million;
(c) ultimately, though, the St Lucia property was transferred to Spon Pty Ltd, a company controlled by Ms Wang;
(d) the purchase price of $1.5 million was to be paid by unspecified instalments, but to be paid by June 2023, that is, within three months of the transfer of the property;
(e) subsequently, Ms Wang paid instalments totalling $600,000 which left $900,000 to be paid;[1]
(f) that balance of $900,000 remained unpaid and so, in September 2023, Mr Ou demanded the re-conveyance of the property (it is difficult to see on what basis Mr Ou could demand a re-conveyance; on his version he was owed a debt);
(g) Ms Wang then asserted that the transaction was meant as a gift;
(h) Mr Ou claims that he is entitled to payment of the balance of the purchase price, or, by reason of an estoppel, he is entitled to equitable compensation.
(a) the WeChat agreement would still govern their respective rights; and
(b) "the Deed of Gift would be of no effect, its purpose instead being to mislead the Queensland Revenue Office as to the true rights and obligations in respect of the Property..."[4]
"46. I understood that Ms Wang's deferred payment proposal was advanced on the basis that she did not have immediate access to the full sum of $1.5 million. I also understood that she believed she could obtain a tax advantage by structuring the payment in this way, apparently by paying less stamp duty. I did not give much thought to this, as I figured this was Ms Wang's issue and I was just focused on rescuing my business. I also assumed that Ms Wang would know how to structure the sale appropriately because she was a real estate agent and also had engaged a lawyer. I ended the conversation by confirming that I agreed to her offer and to her engaging a lawyer to proceed."
"On 11 September 2023, I wrote to Ms Wang and demanded she transfer the Property to Mr Ou. The basis for the demand was that the transfer, which had purportedly been made as a gift pursuant to a Deed of Gift dated 16 March 2023 (Deed of Gift), was a sham. Exhibited to my affidavit and marked "BG-1" is a copy of this correspondence." [emphasis added]
Paragraph 9: "The plaintiff relies upon the messages for 14 February 2023, exhibited to the affidavit of the plaintiff and the affidavit of Ana Zhao herein, each affirmed 6 November 2024."
Paragraph 10: "The plaintiff relies upon the messages for 14 February 2023 and 1 March 2023, exhibited to the affidavit of the plaintiff and the affidavit of Ana Zhao herein, each affirmed to 6 November 2024."
11A By an exchange of messages via WeChat on 16 March 2023 between the plaintiff and the defendant:
(a) the defendant proposed that the plaintiff execute a Deed of Gift to transfer the Property;
(b) the defendant said (in effect) that the Deed of Gift, for which the Property might be valued at $1.5 million, was a means to reduce the stamp duty for which she would be liable;
(c) the defendant further assured the plaintiff that, notwithstanding the gift mechanism, he would receive the Purchase Price in accordance with the Agreement, which assurance she gave him by messaging him inter alia that:
(i) "you won't be unpaid...the lawyer knows there is a transaction. If I don't give you, you can trace back to me"; and
(ii) (in relation to the agreed consideration under the Agreement), "I'll definitely give it to you. Otherwise, you tell the lawyer and the whole of Brisbane knows that I extorted from my cousin (sic)".
"12A. On or about 16 March 2023, and in reliance on the Assurances, the plaintiff:
(a) executed a written retainer for LinkLaw to conduct the conveyance of the Property;
(b) executed the Deed of Gift."
(a) in the circumstances Ms Wang owed fiduciary duties to Mr Ou because, amongst other things, he was in China, Ms Wang was a licensed real estate agent in Brisbane, she occupied the property, and Mr Ou had no legal or other representative in Australia;
(b) she therefore had a duty not to place herself in a position of conflict of interest or to profit from opportunities which came to her in her role as real estate agent or fiduciary;
(c) she arranged the sale for $1.5 million, and a transfer of the property before the purchase price was paid;
(d) she arranged the solicitors, the Deed of Gift, and the Assurances and the transfer, but failed to pay the balance of the purchase price;
(e) she subsequently, in 2024, sold the property for $1.95 million;
(f) by reason of the breaches of her fiduciary duty, Mr Ou has suffered a loss of:
(i) at least $900,00 (the debt); or
(ii) the difference between the market value (not yet specified) less the $600,000 paid; or
(iii) $1.95 million (that is, the September 2024 sale price) less $600,000.
(a) paragraph 36(b) refers to "repeated requests" to vacate the property but does not identify those requests;
(b) paragraph 36(c) includes an allegation of inadequate attempts to sell the property over a 2-year period but does not specify or give any details of the alleged inadequacy;[17]
(c) paragraph 37(a) specifies that "the Property could be readily sold at or about $1.7m" but no details are given as to potential buyers or why it is alleged that a buyer at that price could be readily found;
(d) paragraph 41 asserts that a buyer could be found for at least $1.7 million but, similarly, no details are given;
(e) paragraph 42(a) does not identify "the market value of the Property as at 28 March 2023" - the valuation evidence is yet to be obtained;
(f) paragraph 42(e) refers to the price at which the property was sold in September 2024, but the relevance of that sale price is not explained or apparent.
(a) An order that the amending party pay the costs occasioned by the amendment is not necessarily "a panacea that heals all";[19]
(b) The strain that the litigation imposes on litigants, including corporate litigants, is a relevant consideration;[20]
(c) The objectives of rule 5,[21] that is, the just and expeditious resolution of the real issues at a minimum of expense, does not require that the court refuse applications to amend;
(d) the waste of some costs and some degree of delay are inevitable consequences of amendment; that waste and delay, and the extent of it, are relevant considerations;[22]
(e) The nature and importance of the amendment to the party applying to amend cannot be overlooked;[23]
(f) Factors weighing against allowing an amendment may be:
(i) the extent of the delay;
(ii) the costs associated with the delay;
(iii) the prejudice which might reasonably be assumed to follow;
(iv) any prejudice that is shown.[24]
(g) Much will depend on the point the litigation has reached relative to a trial when the application to amend is made;[25]
(h) A factor to consider is whether the party seeking to amend has had a sufficient opportunity to plead their case and whether it is too late to amend having regard to the other party and other litigants awaiting trial dates;[26]
(i) The exercise of the discretion will invariably require an explanation to be given where there is delay in applying for amendment;[27]
(j) An applicant will need to show that the application is brought in good faith as well as the circumstances giving rise to the amendment so that they may be weighed against the effects of any delay and the requirements of rule 5.
(a) the proposed amendment expands the case in circumstances where translators are likely to be involved; and
(b) the proposed amendments are rather 'under-cooked' in the sense that they contain some problems (identified above) as well as a need for valuation evidence.
[2] Ms Wang relies on s59 of the Property law Act 1974.
[4] Reply and Answer at paragraph 7(e)F(vii).
[5] The lawyer is stated to be Yu Shih of Linklaw Solicitors. Mr Guo swears in his most recent affidavit that Linklaw Solicitors acted for both vendor (Mr Ou) and purchaser (Ms Wang's company, Spon).
[6] For example, the name 'Ms Wang' is altered to 'the defendant' wherever it appears.
[7] I have 'rounded' these figures for simplicity.
[8] As discussed below, it is difficult to see how an order for specific performance is appropriate.
[9] See the discussion of a fiduciary duty below.
[10] Of course, the original messages are in Mandarin. There may be something lost in the translation.
[11] [1954] HCA 72; (1954) 91 CLR 353 at 360; see Carter, Contract Law in Australia (8th ed) at [5-02]. The third category in Masters v Cameron is that category where the nature of the agreement is that the agreement would not come into effect unless and until there was an execution of the agreement in which the terms and conditions have been agreed. In other words, 'our agreement is subject to us signing a written contract'.
[13] There is likely to be a paper trail evidencing whether the payment was made or not.
[14] See the beginning of paragraph 20.
[15] The claim is specified to be a claim for specific performance but an order is merely sought for the payment of money outstanding under a largely executed contract. Nothing is sought 'in specie': see the discussion in Dal Pont, 'Equity and Trusts', 8th ed at [33.05].
[16] It is true, though, that both parties' pleadings and written evidence-in-chief traverses wider than the narrow debt claim.
[17] Possibly the allegation will be a deficiency in advertising, or it may be something else.
[18] [2009] HCA 27; (2009) 239 CLR 175. Note that the in the course of argument Counsel referred to some passages of the High Court's judgment which considered rule 501 of the Court Procedures Rules 2006 (ACT). That rule is different. For present purposes, it is necessary to consider those parts of the judgment referred to the broader discretion under Rule 502.
[19] [2009] HCA 27; (2009) 239 CLR 175 at [99]; Cropper v Smith [1884] UKLawRpCh 91; (1884) 26 Ch D 700 at 711.
[20] [2009] HCA 27; (2009) 239 CLR 175 at [100], [101].
[21] In Aon Risk, the equivalent ACT rule was Court Procedures Rules 2006 (ACT) rule 21.
[27] Ibid. The adequacy of the explanation is also a relevant factor.
[30] See, for example real estate agent cases like McKenzie v McDonald [1926] VicLawRp 74; [1927 VLR 134 and Pederson v Larcombe [2008] NSWSC 1362, both of which are discussed by Dal Pont in Equity and Trusts in Australia, 8th edition at [4.180].
[31] These are the present translations of the WeChat messages on 16 March 2023 at 15:17 and 15:44.
[35] One of these affidavits appears to translate the text of Mr Ou's affidavit, but there may be something amiss in the way the affidavit of the translator has been put together.
Junjie Ou
Xuefei Wang [2025] QSC 52
(2009) 239 CLR 175
(1954) 91 CLR 353