Lyu Jun v Wei Ho-Hung: Resulting Trusts, Gifts, and Intention to Create Legal Relations
In Lyu Jun v Wei Ho-Hung, the High Court of Singapore addressed a dispute over the ownership of assets acquired during a romantic relationship. Lyu Jun, the plaintiff, claimed that funds transferred to Wei Ho-Hung, the defendant, for various purposes, including the purchase of an apartment, a car, and investments, were not intended as gifts and should be held on resulting trust. Wei Ho-Hung argued that the transfers were gifts. The court found in favor of Lyu Jun, declaring that Wei Ho-Hung held the D’Leedon apartment, the car, and a portion of the Marne Road shop on resulting trust for Lyu Jun. The court also ordered Wei Ho-Hung to pay certain sums and account for rental income from a property option.
1. Case Overview
1.1 Court
General Division of the High Court1.2 Outcome
Declarations granted that Mr. Lyu beneficially owns 100% of the D’Leedon apartment and the Car, and 80% of the Marne Road shop. Ms. Wei to pay sums and account for rental.
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
High Court case between Lyu Jun and Wei Ho-Hung concerning ownership of assets. The court found resulting trusts existed and some transfers were not gifts.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Lyu Jun | Plaintiff | Individual | Beneficial ownership declared, Monetary award, Monetary award, Account for rental, Claim Dismissed | Partial, Won, Won, Won, Dismissed | Lok Vi Ming, Qabir Sandhu, Chong Xin Yi, Tan Lena |
| Wei Ho-Hung | Defendant | Individual | Beneficial ownership not declared, Monetary payment ordered, Monetary payment ordered, Account for rental | Lost, Lost, Lost, Lost | Gregory Vjayendran, Lee Ee Yang, Lua Wei Liang Wilbur |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Philip Jeyaretnam | Judge of the High Court | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Lok Vi Ming | LVM Chambers LLC |
| Qabir Sandhu | LVM Chambers LLC |
| Chong Xin Yi | Gloria James-Civetta & Co |
| Tan Lena | Chen Lina |
| Gregory Vjayendran | Rajah & Tann Singapore LLP |
| Lee Ee Yang | Covenant Chambers LLC |
| Lua Wei Liang Wilbur | Covenant Chambers LLC |
4. Facts
- Lyu Jun transferred large sums of money to Wei Ho-Hung during their relationship.
- The transferred money was used to purchase assets in Singapore, including an apartment and a car.
- The relationship between Lyu Jun and Wei Ho-Hung deteriorated and eventually ended.
- Wei Ho-Hung initially denied receiving money from Lyu Jun for the purchases.
- Lyu Jun claimed the transfers were not gifts but investments for their future together.
- Wei Ho-Hung later claimed the transfers were gifts of love to her.
- The D’Leedon apartment was purchased as their intended matrimonial home.
- Wei Ho-Hung promised to repay the loan for Grenadian citizenship upon sale of a property.
5. Formal Citations
- Lyu Jun v Wei Ho-Hung, Suit No 625 of 2019, [2021] SGHC 268
6. Timeline
| Date | Event |
|---|---|
| Lyu Jun and Wei Ho-Hung first met at a medical conference. | |
| Wei Ho-Hung was issued the option to purchase the D’Leedon apartment. | |
| Wei Ho-Hung exercised the option to purchase the D’Leedon apartment. | |
| Wei Ho-Hung completed the purchase of the D’Leedon apartment. | |
| Lyu Jun transferred S$202,220.38 to Wei Ho-Hung. | |
| Wei Ho-Hung received S$792,864.22 from Lyu Jun. | |
| Relationship between Lyu Jun and Wei Ho-Hung severely deteriorated. | |
| Lyu Jun was arrested as a result of a complaint made by Wei Ho-Hung to the police. | |
| Wei Ho-Hung commenced suit against Lyu Jun by HC/S 515/2019. | |
| Lyu Jun commenced proceedings against Wei Ho-Hung. | |
| Freezing order granted to Wei Ho-Hung was discharged. | |
| Wei Ho-Hung discontinued her earlier suit. | |
| Wei Ho-Hung amended her defence. | |
| Lyu Jun’s affidavit of evidence-in-chief was dated. | |
| Wei Ho-Hung’s affidavit of evidence-in-chief was dated. | |
| Trial began. | |
| Trial concluded. | |
| Original oral closing submissions were heard. | |
| Lyu Jun filed an application to amend the relief sought. | |
| Parties were heard on the application to amend the relief sought. | |
| Hearing date. | |
| Statement of Claim (Amendment No 4) dated. | |
| Judgment reserved. |
7. Legal Issues
- Resulting Trust
- Outcome: The court held that the D’Leedon apartment, the Car, and 80% of the Marne Road shop were held on resulting trust for Mr. Lyu.
- Category: Substantive
- Sub-Issues:
- Lack of donative intent
- Disproportionate contribution to purchase price
- Gifts
- Outcome: The court held that the transfers for the D’Leedon apartment and the Car were not intended as gifts.
- Category: Substantive
- Sub-Issues:
- Intention to gift
- Delivery of gift
- Intention to Create Legal Relations
- Outcome: The court held that there was an intention to create legal relations regarding the loan for Grenadian citizenship.
- Category: Substantive
- Sub-Issues:
- Social and domestic arrangements
- Presumption against intention
- Unjust Enrichment
- Outcome: The court found unjust enrichment claims were satisfied for the first clinic investment and the US surrogacy.
- Category: Substantive
- Sub-Issues:
- Failure of consideration
- Change of position
- Failed Purpose Trust
- Outcome: The court found that the legal requirements for recovery, whether formulated in terms of a Quistclose trust or a restitutionary claim, were satisfied for the first clinic investment and the US surrogacy.
- Category: Substantive
- Sub-Issues:
- Mutual intention for specific purpose
- Failure of purpose
- Obligation to repay
8. Remedies Sought
- Declaration of Beneficial Ownership
- Monetary Restitution
- Accounting of Profits
9. Cause of Actions
- Resulting Trust
- Unjust Enrichment
- Breach of Contract (Loan)
10. Practice Areas
- Commercial Litigation
- Trust Litigation
- Contract Litigation
- Restitution
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Toh Eng Tiah v Jiang Angelina and another appeal | Court of Appeal | Yes | [2021] SGCA 17 | Singapore | Cited for the law relating to gifts, specifically the requirements of intention to gift and delivery of the subject matter. |
| Chan Yuen Lan v See Fong Mun | Court of Appeal | Yes | [2014] 3 SLR 1048 | Singapore | Cited for the principle that the court's task is to discern the intention of the transferor from any direct evidence in presumed resulting trusts. |
| Lau Siew Kim v Yeo Guan Chye Terence and another | Court of Appeal | Yes | [2008] 2 SLR(R) 108 | Singapore | Cited regarding the open question of whether advancement should extend in favor of the woman in a de facto relationship. |
| Pacific Rim Palm Oil Ltd v PT Asiatic Persada and others | N/A | Yes | [2003] 4 SLR(R) 731 | Singapore | Cited for the doctrine of Quistclose trust, where money is advanced for a specific purpose and that purpose fails. |
| Barclays Bank Ltd v Quistclose Investments Ltd | House of Lords | Yes | [1970] AC 567 | England and Wales | Cited as the origin of the Quistclose trust doctrine. |
| Benzline Auto Pte Ltd v Supercars Lorinser Pte Ltd and another | Court of Appeal | Yes | [2018] 1 SLR 239 | Singapore | Cited for the legal requirements for a claim in unjust enrichment. |
| Management Corporation Strata Title Plan No 473 v De Beers Jewellery Pte Ltd | Court of Appeal | Yes | [2002] 1 SLR(R) 418 | Singapore | Cited for the defence of change of position in unjust enrichment claims. |
| Gay Choon Ing v Loh Sze Ti Terence Peter and another appeal | N/A | Yes | [2009] 2 SLR(R) 332 | Singapore | Cited for the presumption that parties do not intend to create legal relations in the context of social and domestic arrangements. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Resulting Trust
- Gifts
- Intention to Create Legal Relations
- Matrimonial Home
- Building Blocks
- IOU
- Grenadian Citizenship
- D’Leedon Apartment
- Marne Road Shop
- Quistclose Trust
15.2 Keywords
- trusts
- gifts
- legal relations
- property
- restitution
- singapore
- contract
16. Subjects
- Trusts
- Contract Law
- Property Law
- Restitution
- Family Law
17. Areas of Law
- Trusts
- Resulting Trusts
- Presumed Resulting Trusts
- Quistclose trusts
- Contract Law
- Intention to create legal relations
- Gifts
- Inter vivos gifts
- Presumptions against gifts
- Restitution
- Unjust enrichment
- Property Law