A Chinese businessman has won his High Court battle for the ownership of the luxury Fota Island Resort in Co Cork.
After two days of intensive talks, a settlement was announced at the High Court on Thursday.
Yuzhu Kang, who is from Hebei province and lives in Dublin, had claimed he had invested €30 million in Irish properties, including the five-star hotel and spa in Co Cork. He launched the legal action claiming there was a conspiracy to defraud.
At the opening of the case this week, Mr Kang’s senior counsel, Declan McGrath, instructed by Taylor Wessing Solicitors, said the central matter in controversy was who had funded the purchase of the properties.
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At issue in the case was the alleged transfer of shares in the years that followed and Mr Kang claimed this formed part of a conspiracy to defraud him.
Counsel told Mr Justice Max Barrett the settlement was on consent. The action had been scheduled to last 12 weeks.
As part of the settlement various stock transfers have been declared null, void and ineffective and Mr Kang has been declared a 100 per cent shareholder in the company Xiu Lan Holdings Ltd of Ballincollig, Co Cork, which is the 100 per cent shareholder in Xiu Lan Riverside Hotel Ltd.
The settlement now effectively means that Mr Kang is the owner of the Fota Island Resort and the Kingsley Hotel in Cork city as well as three other properties which had been in dispute.
Mr Kang had sued businesswoman Xiu Xiang Kelly, who is also from the Hebei region, but who lives at Fota Island Resort, Cork, and her son, Tuo Du, of the same address.
Mr Kang had also sued three companies: Xiu Lan Holdings Ltd and Lan Sideriver Investment Holdings Ltd, both with offices at Ballincollig, Co Cork, and Allied Express International Development Ltd, with registered offices in Hong Kong.
In the proceedings, Mr Kang claimed he had agreed in 2013 to purchase Fota Island Resort, which was being sold on the instructions of the National Asset Management Agency.
He said that, with the assistance of Ms Kelly, Xiu Lan Holdings was incorporated to hold the investment. Mr Kang was the 100 per cent shareholder.
In the three years that followed, he said, he made several further property acquisitions in Ireland, including the Kingsley Hotel in Cork city, and the majority of the properties were acquired and are held by subsidiaries direct or indirect of the holdings company.
All of the claims were denied.
Ms Kelly, who brought a counterclaim that has now been dismissed, contended that she had effected the purchase of the Fota Island Resort in 2013 using money belonging to her and that she had at all times been the beneficial owner of the luxury resort.
It was claimed that Ms Kelly was anxious not to be identified with the proposed purchase of Fota Island Resort and that she had used Mr Kang’s name “as a front” for her. She claimed that Mr Kang was aware and consented to his then commercial profile being adopted in the context of the Fota purchase and she was the preferred bidder. She claimed that the purchase money paid in respect of Fota had been funded by herself and her son and third parties but not Mr Kang.
Mr Justice Barrett was told on Thursday evening there would be no order for costs, which means each side pays their own legal costs.
The proceedings were stayed, so with 48 hours’ notice the parties can return to court with a view to enforcing the terms of settlement.
Outside court Mr Kang said he now intended “to realise my dream for Fota that I had when I first purchased it in 2013″.
Speaking after the settlement of proceedings, Mr Kang said: “Although late, justice had been done.”
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