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JSM acts for First Laser Limited on a successful claim for breach of contract

6 March 2008
JSM, acting for First Laser Limited, succeeded in a claim for breach of contract and breach of trust against Fujian Enterprises (Holdings) Co. Ltd, a window company incorporated in Hong Kong by the Fujian Provincial People's Government of PRC.

Frist Laser Limited is a Macanese company controlled by a famous Macanese businessman who is a member of the National Committee of the Chinese People's Political Consultative Conference and a member of the Standing Committee of the Fujian Provincial Committee of the Chinese People's Consultative Conference.

The case involved a foreign element as it was a dispute between a Macanese party and a Hong Kong party about an agreement entered into Hong Kong for the purchase of shares in a PRC company. The crucial legal issue was what was the system of law to be applied either to the case as a whole or to a particular issue or issues in dispute.

In a judgment handed down on 5th February 2008, Deputy High Court Judge To held that the proper law of the agreement is Hong Kong law and that the Hong Kong court would give effect to the agreement notwithstanding that the Supreme People's Court of PRC had ruled that the agreement was of no effect under PRC law. His Lordship concluded that giving effect to the agreement was not contrary to the public policy of Hong Kong or PRC. First Laser Limited was adjudged to be entitled to an award of US$30.6 million against Fujian Enterprises (Holdings) Co. Ltd.

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