Supreme Court case handled by Huang & Huang selected by CHINA BUSINESS LAW JOURNAL as “Deals of the year 2019”

The Supreme Court case concerning priority in respect of proceeds of the sale and subsequent sale of buildings under construction valued at hundreds of millions of Chinese Yuan in the presence of a confrontation between the contractor’s statutory lien and the bank’s secured claim under a mortgage agreement. Complex circumstances involved in the case significantly increased the difficulties in ascertaining the relevant facts and sorting out the various relationships under the construction contract and the loan contract, the rights and obligations between different parties concerned, and complicated the issue of applicable laws.

Our senior partner Mr. Huang Hui led the team of our firm representing the bank in the case. After conducting a thorough and exacting factual investigation and legal research, including an extensive review of the construction of the loan contract and the loan disbursement process, the bank’s auditing of the construction contract and construction permit documents, monitoring of the construction progress and supervision of the accounts specialized for construction project funds, and related transactions between the developer and the contractor, we successfully drew a clear line between the payments of construction project funds, the bank’s loan disbursements, the lending and transactions between the contractor and the developer and more importantly the corresponding legal consequences of such payments and transactions as well as their impact on each other, on the basis of which, we eventually managed to build up a very strong case which won a complete victory in the Supreme Court for our client.

We are delighted and proud that the Supreme Court case handed by us has been selected by CHINA BUSINESS LAW JOURNAL as “Deals of the year 2019”, which is a recognition of our strengthen in sectors outside our conventional strong areas such as shipping and insurance. In recent years, whilst remaining compensative in our conventional strong areas, we have gradually demonstrated our strength in fields such as air transportation, construction engineering, and banking and finance.