Court File and Parties

COURT FILE NO.: CV-22-00687209-0000 DATE: 20230915 SUPERIOR COURT OF JUSTICE - ONTARIO

RE: LI YANG (CANADA) HOLDINGS CO. LTD. and DANIEL EXECUTIVE (CANADA) HOLDINGS CORP., Plaintiffs AND: LYSR MANAGEMENT LTD., 2708042 ONTARIO INC., RINA SHINCHI, YANGGUANG LIN, ZI MU LI, RENXIANGYU ZHANG, LOCATION WAY INC., WEI ZHENG, JOHN DOE, JANE DOE and OTHER PERSONS UNKNOWN WHO HAVE CONSPIRED WITH THE NAMED DEFENDANTS, Defendants

BEFORE: Justice Papageorgiou

COUNSEL: Ford Winston Wong and Shelly Tam for the Plaintiffs William Murray, acting as Agent for Samuel Eng, for the Defendants LYSR Management, 2708042 Ontario Inc., 2786584 Ontario Inc., Rina Shinchi and Yangguang Lin Nadia Condotta, for the Defendants Wei Zheng and Location Way Inc.

HEARD: September 15, 2023 by videoconference

Endorsement

[1] For the purposes of this endorsement, I am using the definitions used in my previous endorsements in this matter.

[2] I scheduled a return of this matter to again permit the parties to make submissions on limitations for the mareva injunction and living expenses as the parties did not make fulsome submissions with evidence on the previous occasions.

[3] Today, the parties again did not file any evidence.

The Wei Defendants

[4] Counsel for the Wei defendants has advised that they have been working with their banker and that they are able to continue operating without any limitations to the injunction. They do not seek any limitations and are happy to go forwards with the status quo.

The Lin Defendants

[5] Counsel for the Lin defendants made a number of submissions.

[6] First, he complained that although there was a carve out in the injunction designed to permit Ms. Shinchi to conduct business through one account, she is having difficulty because the Order was not “taken out” by the plaintiff. Today is the first the plaintiff learned anything about this issue. I have signed the Order and it is up to the parties to take the necessary steps to have it issued and entered. If the plaintiff has not done so and if this is presenting problems, it was open to the Lin defendants to submit the Order to be issued and entered. I trust the parties will work this out.

[7] Second, he says that he has been unable to obtain instructions from his clients. He has not prepared the court ordered affidavit from Mr. Lin and there have been no cross examinations of either Mr. Lin or Ms. Shinchi. He has asked them to contact him to set these up and they have not responded. He still does not have an address for them and they are now not responding to his emails. He will be seeking to get off the record. He advises that these motions are scheduled during the last Thursday of each month and he will schedule this in due course.

[8] Third, he has also advised that Ms. Shinchi takes the position that she did not do anything wrong; she only signed documents at the instructions of her husband and it may be that there is ultimately a conflict between Ms. Shinchi and Mr. Lin.

The Plaintiffs

[9] The plaintiffs pointed out that it is already four months after the mareva injunction was made. The Lin defendants were required to provide certain information which they have failed to do. They were required to attend for cross examination which they have failed to do. They have failed to pay the costs order. The condo over which the plaintiffs had some security has been sold and the first mortgagee did not even recover the amount owed. There will be no further funds remaining for the plaintiffs. He takes the position that the Lin defendants have deliberately attempted to avoid providing the required information to avoid disclosing their assets.

[10] He wishes to bring a motion for contempt which I have scheduled for two hours on November 24, 2023 before me if I am available. One of the difficulties with bringing this motion is that the Lin defendants have continued to hide where they reside, ostensibly citing the explanation that they are afraid of the Wei defendants. I have no basis to form any conclusion on this issue. However, they must disclose their address to the plaintiffs. I am directing that they provide their address for personal service within seven days. If they do not do so, then I am ordering that the plaintiff may serve them with the contempt motion to their email addresses as follows: […] and […]. These were provided by their counsel.

Further Hearings

[11] Finally, I have attempted to schedule return of this matter on several occasions to ensure fairness to the defendants in terms of limiting the mareva injunction and providing carve outs for living expenses. At this stage, I will not be scheduling another return date. If the parties wish to schedule a return date to address any matter arising out of the mareva injunction they may do so through my assistant […].

[12] This order shall be of force and effect without the need for a formal order but if the parties wish to prepare an Order and submit it to me they may do so.

Costs

[13] Plaintiff counsel neglected to address costs of this attendance. I am reserving such costs to the next attendance either at the contempt hearing or such further attendance as may be required.

Papageorgiou J. Date: September 15, 2023