The case, which began in October 2015, pitted Oei against Concord Pacific Acquisitions, a part of Concord Pacific Group. The company, led by CEO and president Terry Hui, accused Oei and a related company of breaching an agreement to develop the positioning and acting in bad faith.
However, after years of legal wrangling, British Columbia Supreme Court Justice Peter Voith sided with Oei in a July 19 ruling, rejecting Concord’s claim in its entirety.
Concord is considering an appeal, its attorney J. Kenneth McEwan said Monday in an emailed statement. Oei couldn’t immediately be reached for comment.
The dispute centered across the Plaza of Nations, a Vancouver entertainment complex that Oei bought for C$40 million ($30 million) in 1989. By 2015, Oei intended to develop this facility in cooperation with local partners. According to the judgment, during a dinner on May 3 this 12 months, he told Hui that his “lucky price” for the multi-stage reconstruction was C$500 million.
By May 14, after several other meetings in Singapore, a preliminary agreement was reached between the 2 parties within the business lounge of the Four Seasons Hotel in Hong Kong. It submitted a payment plan to Concord under which C$10 million could be paid to Oei inside three business days, C$40 million inside 60 business days, and one other C$75 million inside 14 business days of the positioning plan change.
However, over the approaching months, negotiations broke down. There were disputes over key details of the redevelopment plan and the C$40 million was never paid to Oei. On August 3, 2015, Oei demanded that Concord pay the funds by August 6 or face legal motion. The day after the deadline, Oei initiated legal proceedings.
McEwan said in an announcement that after negotiations stalled, Concord paid the C$40 million to a trust fund, to not Oei personally.
“Concord believed that under the circumstances this move was commercially reasonable,” he said.
The rise and fall of Sentosa Bay, the “Monte Carlo” of Singapore
The rise and fall of Sentosa Bay, the “Monte Carlo” of Singapore
Oei continues to withhold the initial C$10 million payment despite claims no agreement has been reached, he said.
The two sides met several times, including over dinner at Hui’s home and La Terrazza restaurant in Vancouver, but were unable to resolve their differences. On October 4, Concord was served with a breach of contract lawsuit within the High Court of Singapore, and Oei’s brother-in-law told Concord on October 21 that the unique terms of the contract had been terminated.
Nine days later, Concord began its own proceedings in British Columbia, which ultimately ended on Friday, wherein it alleged that Oei had breached an oral agreement not to barter with other developers and to maintain the contract confidential. Oei met with rival real estate company Aquilini Investment Group and the family behind the corporate. Concord further argued that Oei didn’t negotiate in good faith.
Why cannot a Hong Kong developer sell apartments on a $600 million property in Singapore?
Why cannot a Hong Kong developer sell apartments on a $600 million property in Singapore?
However, Judge Voith ruled that comments and text messages between the 2 parties were open and Oei’s open admission of Hui at several locations where he met with other corporations meant the 2 sides never agreed to exclusive negotiations. He added that Concord and one among his employees were also dishonest of their testimony on quite a few points.
“I don’t find that the bosses imposed a ‘binding obligation to barter’ or that they did so in ‘good faith,'” Judge Voith wrote. “Concord has been dishonest at times.”
In mid-July, a letter was written to Oei promising “actually” a payment of C$40 million by a specified date, knowing this was unfaithful, the judge added.
Judge Voith also noted that “based on my findings, it is obvious that Concord cannot establish the fabric features of either the May 14 Agreement or the May 14 Agreement.”
Oei was ordered to pay the prices.
