The dispute resolution team of Zhong Lun Law Firm recently won two lawsuits on behalf of Zhong Lun’s client - a world famous ship power equipment supplier (the “Supplier") in its disputes over two main engine supply contracts. Both cases were handled by partner Lei Niu and the associates Tao Xu and Li Mao of Zhong Lun’s Shanghai Office.
The both two cases occurred among the same parties regarding the main engine supply contracts of two different vessels. After the previous owner of the vessels (the “Owner") canceled the shipbuilding orders, the Chinese shipyard brought these two lawsuits against the Supplier and the Owner by claiming for the compensation for damages for the reason that the equipment provided by the Supplier failed to meet the requirements of the main engine supply contracts and the Owner conspired such infringement maliciously with the Supplier.
Before the procedure of the Supreme People’s Court, Qingdao Maritime Court and Shandong High People’s Court have respectively passed the judgments of first instance and the judgments of second instance of the two cases, by judging that the Supplier and the Owner shall jointly compensate the Chinese shipyard for approximate one hundred and fifty million Yuan. The Supplier changed to authorize the dispute resolution team of Zhong Lun Law Firm to apply for retrial to the Supreme People’s Court. Through Zhong Lun’s efforts, the Supreme People’s Court ruled the retrial of two cases were permitted. After the retrial hearing, in October of 2016, the Supreme People’s Court judges to support all the claims of the Supplier and repeals the judgments of first instance and the judgments of second instance of the two cases both.
The retrial rulings and judgements of the SPC reflect the substantial justice and the procedural justice of Chinese legal system and boost foreign clients’ confidence in the Chinese market.