Helena Yiran Shao

The applicant, Parvez Peerpasha Huseni Inamdar, sought to rescind an Agreement of Purchase and Sale for a vacant property after discovering a restrictive covenant limiting development to a single detached house.

The court found that the covenant was a registered restrictive covenant excepted by the agreement, and that the applicant, a sophisticated purchaser, had removed due diligence conditions and assumed the risk.

The application for rescission was dismissed.

This decision provides supplementary reasons following a motion for a certificate of pending litigation.

The court addresses an improper communication from the unsuccessful parties' counsel questioning the evidentiary basis of the prior decision, specifically regarding a mortgage on the subject property.

The court clarifies that direct communication with the court without prior consent or direction is a breach of Rule 1.09 of the Rules of Civil Procedure.

The court also confirms that the title abstract showing the mortgage was part of the evidentiary record and that its presence or absence does not alter the original assessment of equities or the decision.

The plaintiff, Katherine Lee, brought a motion seeking leave to issue a certificate of pending litigation (CPL) against a property, alleging a one-half beneficial interest that was fraudulently conveyed by her father, Yunchang Li, to himself and her elder sister, Yahong Li.

The court found that the plaintiff established a prima facie case of fraud, citing several "badges of fraud" including the transfer occurring without notice, nominal consideration, and a non-arm's length relationship.

The court also determined there was a high probability of success for the plaintiff's claim and that the equities favored granting the CPL, as damages would not be an adequate remedy.

The motion for CPL was granted, and costs were awarded to the plaintiff on a partial indemnity basis, with a reduction due to the plaintiff's procedural error in under-booking the initial motion hearing.