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Dacheng Represents Client in First Case Tried by First Circuit Court of SPC

On March 2, the First Circuit Court of the Supreme People’s Court tried its first case (Jiangxi LDK Solar Co., Ltd. v. Guangxi Yuchai Machinery Group Co., Ltd. over sales contract dispute) in Shenzhen. Shanghai-based senior partners Chen Feng, Zhang Fei and Nanning-based senior partner Teng Hua represented client in the case, and Zhang and Teng participated in the trial. 

As it was the first case tried by the First Circuit Court of SPC since its inception on January 28, it drew much public attention. Law experts such as Jiang Ping, Zhou Linbin and Ye Lin and journalists from a dozen media organizations were present at the trial. 

Zhou Fan, deputy chief judge of the First Circuit Court heard and tried the case as the presiding judge, and another two judges Li Wei and Yu Hong constituted the other members of the collegial panel. The judges were randomly chosen by the computer, and the presiding judge and the collegial panel were all responsible for the trial. Meanwhile, law clerks were present at the trial so that they could assist judges in writing legal documents and handling other work relevant to the case after the trial. 


A dispute cause by a supply agreement 

At nine o’clock, as the three collegial panel members seated themselves in the No.1 Courtroom, Zhou announced the start of the trial. The dispute over an agreement between LDK Solar Co., Ltd. and Yuchai Group dated back in 2011, involving a total value of more than RMB300mln. The two parties’ controversy focused on whether the two sides formed binding contractual relationship and whether Yuchai Group should pay LDK Solar Co., Ltd. liquidated damages and economic losses. The trial went on from nine to 14:50 and no judgment was passed. The presiding judge suggested the two parties mediate outside the court. 


The first Circuit Court case well received 

After the trial, the law experts said that under the effective guidance of the presiding judge, the two sides exhibited their evidence, conducted cross-examination and fully debated with each other over core issues of whether the contract was valid and effective and whether one party should be liable for breach of contract. The litigious rights of both parties were fully protected and the function of court trial was fully tapped. It showed that the form of exercising judiciary authority proved effective and the performance of the First Circuit Court was refreshing. It also showed that the judges were experienced and unbiased in administering the trial.


Dacheng attorney Zhang Fei was interviewed after the trial. Compared with previous trials, he said in an interview, the First Circuit Court allowed the presence of law clerks. In the trial process, the judge would say “let me express my view on the case”, which was different from before. Zhang believed that as judges were charged with more responsibility in court trials in the new judicial reform, they should be entitled to voice their own opinions. Zhang pointed out the fundamental problem the First Circuit Court helped solve was local protectionism. What’s more, the greatest advantage of the court was that the parties did not have to travel long distances to attend trials. Cross-region cases would have taken more than a year before it was heard, but now, it only took three months.