DEALS
Partner Zhang Xuebing and Sun Wei’s Efforts Ensured the Enforcement of Arbitral Award No.158 of the Sugar Association of London
Partner Zhang Xuebing and Sun Wei’s Efforts Ensured the Enforcement of Arbitral Award No.158 of the Sugar Association of London
Arbitral Award No.158 rendered by the Sugar Association of London in 2001 was recently enforced, thanks to the legal services provided by Partner Zhang Xuebing and Partner Sun Wei of Zhong Lun Law Firm. The recognition and enforcement of this arbitral award is deemed a landmark case.
During the recognition proceedings of Award No.158, the company subject to enforcement, i.e. China Sugar, asserted that, “Award No.158 protects unlawful interests acquired from illegal a future transaction contract. Therefore, to recognize and enforce such an award will contradict public policies of China." Beijing High People’s court supported this opinion and held that the future transactions violated prohibitive provisions in Chinese law and contradicted public policies. ED & F Man’s application for the recognition and enforcement of Award No.158 was rejected on this ground.
The Supreme People’s Court, when replying to the instruction request regarding this case, pointed out: China Sugar’s participation in future transactions without permission was indeed illegal and thus invalid under Chinese law. However, violation of the compulsory provisions of the laws of China did not necessarily equal violation of Chinese public policies. None of the circumstances specified in Article 5.2 of the New York Convention was found in this case and Award No.158 should therefore be recognized and enforced. The Supreme People’s court was widely acclaimed by the international arbitration community for this ruling and the prudence it displayed when applying the public policy doctrine. Zhong Lun Law Firm was also praised for successfully representing ED & F Man.
After a prolonged legal battle which lasted for 11 years, Zhong Lun Law Firm’s application, on behalf of ED & F Man, for the preservation of China Sugar’s property was granted, which prompted the reaching of a settlement agreement satisfactory to both parties. Outstanding performances of the lawyers of Zhong Lun Law Firm earned accolades from the client.
Professionals
-
-
Xuebing ZHANG
Equity Partner
BeijingPractices： Bankruptcy, Insolvency & Reorganization,Litigation & Arbitration,Chinese Mainland Capital MarketsIndustries： Real Estate,Urban Infrastructure,Transportation & Logistics,Tourism & Hospitality,Banking & Financial Services,Insurance -
Xuebing ZHANG
Equity Partner
Beijing
-
