Judge orders two guarantors to pay $15 million in Coquitlam development loan dispute

A B.C. Supreme Court judge has ruled in favour of lenders seeking to enforce guarantees connected to a $15-million loan for a real estate development involving two vacant properties in Coquitlam.

In a Sept. 16 decision, Justice Sandra Wilkinson granted judgment against guarantors Suli Lou and 1128072 B.C. Ltd. The loan was advanced in May 2023 to Vanhome Ventures 2 Holdings Ltd. and Vanhome Ventures 2 Limited Partnership, and was secured by a mortgage over the Coquitlam properties as well as guarantees from individuals and companies.

The borrowers and guarantors later defaulted, prompting foreclosure proceedings in August 2025. A temporary court order in October declared that $16.38 million was owing to the lenders.

Lou and Hong Zhang, the sole director of 1128072 B.C. Ltd. and Lou’s husband, argued that they believed their liability would be limited to the share of the debt matching their investment in the development. They said their English comprehension was limited and that they relied on others’ explanations of the documents. Lou said she had been told her liability would be no more than five per cent of the debt.

Wilkinson rejected their defence, finding that Lou and Zhang knew they were signing guarantees and understood they could be liable for at least some of the loan. Their claimed misunderstanding concerned the amount of their potential liability, rather than the nature of the documents. The judge also found they had opportunities to seek an explanation, consult another lawyer or have the documents translated.

Wilkinson found no evidence that the lenders knew Lou and Zhang were reluctant to sign or had allegedly been told their liability would be limited. She concluded the matter could be decided without a trial. Legal costs remain unresolved if the parties cannot reach an agreement.