Case Background
Our firm represented a ship equipment supplier (Respondent) opposing a retrial application filed by a Japanese industrial conglomerate (Applicant) concerning a contract dispute. The Applicant unilaterally terminated a decade-long agency agreement, causing the Respondent to be unable to fulfill 41 sales contracts for marine splash guards (value: tens of millions of RMB). After the Respondent successfully sued for breach and won at two trial levels, the Applicant applied for retrial alleging “forged contracts” and “failure to mitigate losses.”
Case Difficulties
1. Evidence Authenticity Under Fire
- Applicant alleged 10 out of 57 sales contracts had forged signatures.
- Challenged authenticity of end-user (Bohai/Dalian Shipbuilding) confirmation letters.
2. Loss Calculation Dispute
- Applicant claimed Respondent could have used existing inventory to fulfill orders.
- Questioned the reasonableness of the four-year delivery period.
3. Conflict in Law Application
- Applicant invoked Article 94 of the Contract Law(right to terminate).
- Respondent insisted on applying Article 113 (foreseeable losses).
4. Cross-Border Evidence Obstacles
- Shipbuilding companies refused to provide originals for 12 contracts citing trade secrets.
Our Service Highlights
1. Robust Evidence Chain Construction
- Obtained written confirmation letters from both shipbuilding companies via court investigation orders.
- Cross-verified all 57 contracts: confirmed 16 were fulfilled, 41 were unfulfilled.
2. Procedural Breakthroughs
- Rebutted forgery allegations in court: Applicant failed to pay for handwriting expert authentication.
- Exposed flaws in Applicant’s surveillance footage: not notarized and objects unverifiable.
3. Strategic Law Application
- Argued Article 94 Contract Lawinapplicable: Applicant failed to prove fundamental breach.
- Reinforced logic for Article 113: Supply cut-off inevitably caused downstream contract breaches.
Case Outcome
1. Complete Victory at Retrial
- Supreme Court ruled to dismiss all retrial applications.
2. Loss Calculation Model Established
- 100% judicial confirmation of price difference losses for 41 unfulfilled contracts.
- Created “Supply Chain Breach: Foreseeable Loss Calculation Standard”.
3. Procedural Rule Demonstration
- End-user written confirmations constitute superior evidence.
- Party failing burden of proof bears authentication cost risk.
4. Industry Impact
- Defined compensation boundaries for unilateral termination of cross-border agency agreements.
- Provided an adjudication template for ship equipment supply chain disputes.
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