Death of SA businessman Liu Hongtao, who had no will, sparks court battle between his mother and wife over $30m estate
The $30 million estate of one of SA’s most successful – and least-known – businessmen is at the centre of a court battle between his mother in China and his Adelaide family.
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A family feud over a $30 million estate, spanning from Adelaide to the People’s Republic of China, has sparked legal action in South Australia’s highest court.
The mother of businessman and financier Hongtao Liu – who died without a will – has challenged his wife and children for control of his lucrative multinational portfolio.
Junying Yan claims the courts in China, where she is based, have promised her $1.25 million of her son’s overseas assets, including a power station and its equipment.
She wants the fate of Mr Liu’s Australian holdings placed on hold until her four cases, before the Chinese courts, have concluded in order to save court costs.
However her daughter-in-law, Xiangting Kong, and grandchildren Daniel, 14, and Shirley, 12, have urged the court to reject that request.
They say postponing Ms Yan’s lawsuit would freeze Mr Liu’s assets indefinitely – leaving them incapable of continuing their lifestyle.
Mr Liu, who died in November 2018, was one of the directors of Australian Group Investments.
He was also a director of 136 The Parade Pty Ltd, which owns the building from which the Parade Thai restaurant operates.
Mr Liu’s other business interests included the Super Star Australia and Young Stars talent agencies, a catering business, a real estate company and a financial management firm.
In February 2019, Ms Kong was granted control of her husband’s assets – including two lavish propertieson either side of the St Peters billabong.
One of those, designed by architect Max Pritchard, sold for $3.5 million in 2011 and set a benchmark for house prices in the area.
Six months later, Ms Yan, 76, sued for control claiming her son had given “verbal promises” he would support her “for the rest of her life”.
She claimed she was a former factory worker, with limited education and skills, who had relied on annual $40,000 payments from her son to survive.
In a pre-trial judgment, Justice Tim Stanley said Ms Yan told the court she would not pursue the SA assets so long as the Chinese courts ruled in her favour.
“There appears to be common ground that in relation to the (Chinese) property, Ms Yan has an entitlement to about $1.25 million,” he said.
“She submits that the Chinese proceedings should be concluded by early 2021.”
“Ms Kong and her children say the delay significantly the administration of the deceased’s estate and operates as a freeze on those assets (which) they have always lived by.
“The longer the action takes to resolve, the greater the financial and emotional toll on them.”
Justice Stanley said there could be no confidence in when, nor guarantee that, the Chinese case would resolve in a timely manner, making any delay “indefinite”.
“If dissatisfied with the outcome of the Chinese proceedings the plaintiff wishes to maintain her right to litigate here,” he said.
“Ms Yan’s position amounts to having her cake and eating it.”
He declined to postpone the case and ordered Ms Yan pay $350,000 into the court to guarantee any future litigation costs.