Australia, Sept. 6 -- New South Wales Land and Environment Court issued text of the following judgement on Aug. 6:

1. This is the Court's third judgment in these proceedings. It should be read with the Court's principal judgment, Gemi 193 Pty Ltd v Zhu [2024] NSWSC 1113 and the Court's second judgment, Gemi 193 v Zhu (No.2) [2025] NSWSC 295, which related to costs incurred up to the time of the principal judgment. This judgment assumes familiarity with the first two judgments and deals with issues of damages, the scope of consequential relief to be granted and apportionment. Events, persons and things are referred to in this judgment in the same way as in the first two judgments.

2. In the Court's principal judgment, Mrs Zhu, the defendant/cross claimant was found to be in a position of special disadvantage in relation to a transaction she entered with the plaintiff, G193. The Court ordered that Mrs Zhu's secured guarantee be set aside as against G193. But the second cross-defendant, Mr Epstein, was successful in resisting a claim that he had engaged in misleading and deceptive conduct causing Mrs Zhu to enter the impugned transaction. Final relief and costs issues were reserved for further submissions.

3. The Court made the following orders on 16 October 2024 to give effect to the principal judgment:

The Court declares:

1 DECLARES that the following documents executed by the first defendant/cross claimant on or about 5 August 2020 are void ab initio, as against the first defendant/cross claimant:

a. The Loan Agreement between GEMI193 Pty Limited, Fucrez Pty Limited, Mr Gregory John Walker, Ms Jia Yi Zhu and the first defendant/cross claimant;

b. Guarantee and Indemnity between GEMI193 Pty Limited and the first defendant/cross claimant; and

c. Mortgage between GEMI193 Pty Limited and the first defendant with respect to the property situated at ["the Wahroonga property"].

(the Agreements).

The Court orders:

2 ORDERS that the Agreements be set aside as against the first defendant/cross-claimant.

3 DISMISSES the Amended Statement of Claim filed on 9 October 2023.

4 DISMISSES the First Amended Statement of Cross-Claim filed on 12 May 2022 as against the second cross-defendant.

6 ORDERS the plaintiff/first cross defendant within 7 days of these orders to take all required steps to withdraw the caveat [over Mrs Zhu's Gordon property].

7 ORDERS that within 7 days of these orders the parties are to take all required steps to arrange for the monies held in the controlled monies account [Account Number not published], to be released and paid to the defendant/cross claimant or as she may direct.

8 VACATES Order 3 made by his Honour Justice Darke on 22 October 2021.

4. The orders on 16 October 2024 gave the parties leave to approach the Court for a date to argue issues of costs consequent upon those orders. That argument, together with supplementary evidence from Mrs Zhu in relation to damages, took place on 14 November 2024.

*Rest of the document can be viewed at: (https://www.caselaw.nsw.gov.au/decision/1987e3a79d0f44be49d1f2fb)

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