SkyCity VIP wins $347k in legal expenses from friend who sued her over gambling debts

A SkyCity VIP is due back nearly $350,000 in legal fees and expenses after her friend unsuccessfully sued her over an alleged $800,000 gambling debt.

The costs ruling, released this month, follows a judge ruling the loan contracts between the Auckland women were illegal.

Over 11 months between April 2014 and March 2015, Xiufang Sun claimed she had loaned $800,000 to fellow SkyCity VIP Hanyue Xiao and had only been repaid $100,000.

But the High Court Justice Christine Gordon, in a decision in March, found Sun had actually loaned Xiao about $133,000 with the remaining amount made up of interest and repayment costs.

Justice Gordon ruled the loan agreements were consumer credit contracts but said Sun had not complied with disclosure rules under the law, meaning the agreements were illegal and therefore unenforceable.

Sun had "charged excessive interest rates for the purpose of commercial gain", the judge said.

After winning the case, Xiao sought court costs from Sun - claiming $185,480 for legal bills and further expenses of $201,834.

Justice Gordon, in ruling on costs, awarded her $123,000 for legal bills and an additional $47,666 because Sun didn't accept a settlement offer before trial.

The judge ordered Sun pay Xiao a futher $175,514 for expenses like hearing fees, forensic accounant fees and translator costs.