When Two Brothers Sued Each Other Over $3m in Family Expenses

Dispute Over Alleged Loan, Other Payments Goes Nowhere Because of Lack of Records

- Tan Ooi Boon

Nothing tests family bonds quite like large sums of money, as two warring brothers in Singapore found out when they sued each other over more than $3 million in expenses for a family home, special car number plates and fine wines.

The amount in dispute was substantial because it involved two real estate tycoons who were fighting over payments that were made before they fell out. The showdown was ignited when the younger brother filed a lawsuit against his elder brother to get back $2.8 million he claimed was a loan.

But the elder brother said he did not borrow any money, contending that the payment was a "gift" from his younger brother to help with the construction of his $10 million house where their parents and sisters also lived.

The younger brother also claimed that his elder brother did not return $33,000 that was his share of the cost of fine wines they had ordered.

The elder brother responded in kind, filing a claim for $300,000 that he said was owed after he transferred two of his car registration plates featuring only the single digit "1" to his younger brother.

As the brothers' money came from their family company in the form of dividends, one of their sisters, who is the firm's chief financial officer, was also caught in the crossfire and had to testify in court.

But the brothers' effort to recover their money came to nothing as all their lawsuits were dismissed by the High Court because their claims were supported mostly by mere words without any convincing evidence.

This case provides a compelling lesson on why it is better for families to resolve their disputes without going to court because it is often futile to prove transactions without records.

It is common for family members to run their businesses informally and it is only human that most do not keep records as few would anticipate court battles when everything is going well.