Attorneys Larry & Avon Secure 3M RMB Judgment in Cross-Border Steel Contract Case

In 2022, a procurement company from Saint Lucia (the "Client") engaged with a steel supplier in Jinan, Shandong, China, for product purchases intended for local resale.

The Jinan supplier repeatedly promised "shipment within 7 days" and "the most competitive pricing." Trusting these claims, the Client paid a deposit of several hundred thousand US dollars.

However, the very next day after receiving payment, the supplier abruptly changed its stance—repeatedly delaying shipments without providing a clear production timeline and even fabricating vessel booking information to falsely claim that cargo space had been secured.

Recognizing the irregularities, the Client promptly sought legal assistance from the team of attorneys Larry Zhou and Avon Zhao at Landing (Shenzhen) Law Office to mitigate further losses.

Our legal team verified through vessel tracking that the supplier had never actually booked shipping space, revealing an attempt to coerce additional payments. After issuing formal legal warnings to no avail, the Client proceeded with litigation in China court and applied for asset preservation measures against the Chinese supplier.

During the proceedings, the supplier refused to acknowledge fault, instead falsely accusing the Client of failing to arrange SGS inspections as the reason for shipment delays, while still withholding the deposit.

Our lawyers systematically organized evidence and guided the Client through notarization procedures, conclusively proving the supplier's:

• Failure to deliver on schedule

• Malicious price increases

• Persistent misrepresentation

These acts constituted fundamental breach of contract, entitling the Client to lawful termination.

The Chinese court ultimately ruled that the supplier had acted in bad faith, ordering:

1. Full refund of the deposit (approx. RMB 3 million) plus interest

2. Joint liability imposed on multiple shareholders

Although the case was prolonged due to the absence of diplomatic relations between the Client's country and China, and application requirements under the Hague Convention, our legal team's expertise in cross-border disputes secured complete victory. The Client expressed high satisfaction with both our legal strategy and outcome.