Issue #16 : Is This The End?
Happy Monday!
Not the craziest week in APAC disputes, but we've still some interesting cases to get through.
Let's get cracking, shall we?
Here are the latest 🌶 legal headlines:
China: Lenovo Group Lt to pay $128.7 million to InterDigital Inc for licence for telecommunications patents
China: Hong Kong Court of First Instance rejects "untenable" challenge to USD 21 million CIETAC award
China: Tesla wins lawsuit against Chinese car reviewer against TikTok influencer (see more below)
China: Chinese tycoon arrested in US over alleged USD 1 billion fraud
Malaysia: Former AIAC director withdraws claims against former Malaysian AG Tommy Thomas & 12 others
Myanmar: Exiled Myanmar government threatens arbitration against state-owned Thai petroleum company
Ling Yah
P/S: Know of any interesting seminars happening? Drop us a note at editor@overheard.asia!
Space War
Here’s a little space news.
🍿 Background
Back in 2005, Antrix Corporation Ltd (“Antrix”) - the commercial arm of the Indian Space Research Organisation (“ISRO”) wholly owned by the Government of India - entered into an agreement with Devas Multimedia Pvt Ltd (“DEVAS Agreement”).
Under the DEVAS Agreement, Antrix agreed to build, launch and operate 2 satellites and lease out 90% of the satellite transponder capacity to Devas, who would use it to offer hybrid satellite and terrestrial communication services throughout India.
In February 2011, Antrix terminated the DEVAS Agreement as it had found allegations of manipulations in the deal.
Devas Multimedia pushed back & initiated ICC proceedings to seek damages for repudiatory breach of the DEVAS Agreement.
✍🏻 Arbitral Award
Antrix was ordered by the ICC to pay damages of $562.5 million with interest to Devas (“Arbitral Award”).
However, the Supreme Court of India held that Devas was incorporated for fraudulent purposes and its affairs were conducted fraudulently. The DEVAS Agreement was therefore a product of fraud.
🤔 Now
The Delhi High Court has upheld the order to set aside the Arbitral Award.
Looks like it's the end of the road for Devas!
We Need Oil!
Iraq has won a long-standing arbitration case against Turkey, resulting in the crude exports from the semi-autonomous Kurdistan region & northern Kirkuk fields.
🍿 Background
In 2014, Baghdad claimed that Turkey had violated a joint agreement by letting the Kurdistan Regional Government (“KRG”) illegally export oil through a pipeline to the Turkish port of Ceyhan.
The final hearing took place on July 2022.
✍🏻 ICC Ruling
The International Chamber of Commerce has just ruled in Iraq’s favour, and ordered Turkey to pay Iraq damages relating to the transport of KRG oil through the export pipeline and the discount at which KRG oil was sold.
That comes to around $1.5 billion before interest for the period of 2014-2018, with a second arbitration to cover the period from 2018 onwards. 😱
Turkey has stated that it will respect the ruling. No ship will be allowed to load Kurdish crude without the approval of the Iraqi government.
🤔 Potential Impact
The closure of the Iraqi Turkish Pipeline could trigger a collapse of the Kurdistan economy - Turkey would need to source more crude from Iran & Russia to make up for the loss of northern Iraqi oil. It might also trigger a withdraw of foreign oil firms from the region!
Words Have Consequences
Ah influencers.
They’re starting to learn that words have consequences.
👀 What happened?
Boss Cai (aka Xiaogang Xuezhang (小刚学长)) is a Chinese influencer with 14M followers. He creates videos where he tests & customises cars on Douyin (China’s TikTok).
In 2021, he created a video claiming that:
Tesla vehicles had defective brakes; and
Tesla’s quality inspectors were doing a sub-par job & using their position to gain personal favours.
This resulted in mass hysteria, with many installing video cameras in the foot well to prove that the brakes malfunctioned.
🚨 Tesla Acts
Tesla China doesn’t play. In 2021, it sued at least 2 owners who publicly demanded compensation for alleged safety issues. Its legal department even has a social media account which issues C&Ds to influencers!
Unsurprisingly in June 2022, Tesla sued Boss Cai & demanded 5 million yuan ($720,000) in compensation.
Last October, a Chinese court found that Boss Cai’s friend was imaginary and the entire video was fabricated. The Court ordered Boss Cai to apologise to Tesla & pay a 100,000 yuan ($14,400) fine.
Boss Cai appealed the decision but the appeals court upheld the original verdict on 14 March.
😮 What now?
Boss Cai was given 15 days to publicly apologise to Tesla.
The apology will have to be posted on his TikTok, WeChat & Weibo social media channels & made available for at least 90 days. He will also have to pay that 100,000 yuan fine!
🔥 TL;DR
Words have consequences and Tesla isn’t here to play.
Spotlight: Catherine Green (Executive Director, New Zealand International Arbitration Centre)
⚒️ What do you do?
I wear several hats.
I am a director of The ADR Centre, the home of the New Zealand Dispute Resolution Centre (NZDRC), the New Zealand International Arbitration Centre (NZIAC), Building Disputes Tribunal, the Family Dispute Resolution Centre (FDR Centre), and the Independent Complaint and Review Authority (ICRA).
In that role I work with stakeholders across a wide range of sectors and industries both domestically and internationally to promote alternative dispute resolution and to lead the design, development and implementation of dispute resolution processes. I also maintain a private practice as a mediator, arbitrator, and adjudicator with respect to commercial and construction disputes.
🏆 What is your proudest achievement?
My most significant accomplishment in the last year has to be completing an MBA with the University of Auckland Business School.
It gave me a unique opportunity to hone my business skills and engage closely with and learn from those in my cohort who came from a wide range of sectors and backgrounds. We can become siloed in our way of thinking and working. I think it is vital to always strive to learn new things and challenge existing views. This was a great opportunity to do both.
⌛ There are now 25 hours in a day! How do you spend your extra hour?
We have lots of exciting projects on the go. We recently launched a new contractual adjudication process with both NZIAC and NZDRC. We have also been developing software to underpin the delivery of our services. It’s been busy! If I had more time, to be honest I’d probably be catching up on some sleep.
🚀 If you weren't a lawyer, what would you do?
This one’s easy – I’d pursue my passion for underwater and astro photography. I’m lucky to know some incredibly talented and inspiring photographers who I would love to learn more from to develop my own work further.
😋 Your favourite food haunt (bonus points if it's off the beaten track!)
La Guarida in Havana Vieja, Cuba. This is where the famous Cuban movie Fresa v Chocolate was filmed.
The restaurant is off the beaten track on the 3rd storey of a dilapidated building up an old once-grand staircase. Located in one of the poorest areas and what looks like an abandoned property, the food and service is simply stunning. A wonderful juxtaposition and incredibly memorable experience.
*This interview has been edited for clarity and brevity.
Food Feature
Google "Top Malaysian food to try" & you'll find nasi lemak near the top of that list.
If you're wondering what nasi lemak tastes like, try out Village Park. Its dish is often referred to as the "Best Nasi Lemak" in town.
The restaurant always has a queue - even on weekdays! - which is the best indicator of the quality of its food, no? 😉
Details: Google Maps, Facebook
Are you a student or young lawyer?
Want to get involved in helping to run Overheard? Meet senior practitioners? Do legal research with real world impact?
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Special thanks to Overheard in Asia's sponsor:
David Grief was described as "the Law's Middleman" (Business Times, 2021). You can reach out to him at dg@davidgrief.com if you need help identifying the right lawyer, arbitrator or expert for your matters, or even if you just want to grab a drink 🍵🍺 with someone who has managed and mentored lawyers for almost 5️⃣0️⃣ years!