Case Background
Our firm represented the widow and minor daughter (Plaintiffs) of a deceased entrepreneur in a shareholding dispute against the children from his previous marriage (Defendants) and his Canadian ex-wife (Third Party). The decedent held equity in five companies (appraised value: RMB 529 million) and executed an English will in Canada in 2008 bequeathing all shares to his ex-wife. The widow challenged the will’s validity, while the minor daughter claimed her compulsory share.
Case Difficulties
1. Cross-Border Contest Over Will Validity
- Canadian notarized will vs. Chinese statutory requirements for a witnessed will.
- Decedent’s limited English proficiency (basic level only).
2. Dual Disputes Over Shareholding Nature
- Whether the RMB 330 million increase in value of pre-marital shareholdings during marriage constituted marital joint property.
- Quantification basis for the minor daughter’s 7% compulsory share.
3. Procedural Barriers
- Jurisdictional challenge raised due to the RMB multi-billion claim amount.
- Rigorous review of the chain of authentication for extraterritorial evidence.
Our Service Highlights
1. Precision Strike on Will Validity
- Invoked Article 17 of the Inheritance Law: A witnessed will requires one witness to act as the scribe.
- Exposed a critical flaw: The Canadian will only had witness signatures but no designated scribe.
- Clarified that notarization/authentication only verifies signature authenticity, not substantive validity requirements.
2. Innovative Tactics in Share Division
- Disposition of Disputed Assets:
Core shareholdings subject to statutory inheritance, divided equally.
Claim for the RMB 330 million appreciation portion pursued in a separate action (to avoid company dissolution). - Minor daughter’s compulsory share secured through allocation of specific real property assets.
3. Mastery of Foreign-Related Rules
- Established the rule: “Formal validity governed by lex loci actus (will execution place); substantive validity governed by Chinese law.”
- Cited Interpretation I of the Law on the Application of Law for Foreign-Related Civil Relations, Article 2, to exclude retroactive application of law.
4. Procedural Dominance
- Successfully rebutted the jurisdictional challenge (all five companies registered within the jurisdiction of the basic-level court).
- Refuted objections regarding judicial expertise qualifications during trial.
Case Outcome
1. Full Invalidity of Will Affirmed
- Final appellate judgment upheld ruling for statutory inheritance.
2. Equal Share Division Implemented
- Equity in the five companies divided equally among five heirs: 14%/7% each.
3. Key Assets Secured for Plaintiffs
- Marital home worth RMB 3 million awarded to the widow and minor daughter.
- Properties in Canada/Haikou temporarily not disposed of.
4. Rigid Allocation of Procedural Costs
- 2/3 of the RMB 1.58 million litigation costs borne by the losing parties.
5. Landmark Legal Standards Established
- Created the “Cross-Border Will: Form vs. Validity Split-Application” standard.
- Clarified the judicial rule of “Share Appreciation Handled in Separate Proceeding”.
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