Desai Intellectual Property Customer: South Storage Warehouse Management Group Co., Ltd. Hubei Branch (hereinafter referred to as "South Storage Company")



Trial authorities: Wuhan Intermediate People's Court, Hubei Higher People's Court, and Supreme People's Court



Trial result: The Supreme People's Court has ordered the Hubei Provincial Higher People's Court to retrial this case



Acting lawyers: Ye Xiujin and Liu Hanyan



China Minsheng Bank Co., Ltd. Wuhan Branch (hereinafter referred to as Minsheng Bank) has filed a lawsuit with the Wuhan Intermediate People's Court regarding a dispute over a financial loan contract. The first instance judgment states that Nanchu Company shall be liable for compensation to Minsheng Bank within the range of 57.15 million yuan in the value of the pledged property. Nanchu Company filed an appeal, and the second instance judgment of the Hubei Provincial High People's Court assumes full supplementary compensation responsibility for the unpaid principal and interest of the loan involved in the case, including Huali Company. The Southern Reserve Company will face a huge compensation risk of over RMB 40 million determined by the invalidation judgment of the second instance.



Nan Chu Company has entrusted Desai Intellectual Property to apply for retrial, and our agency for retrial is as follows: (1) The basic facts determined in the original judgment are unclear. Huali Company clearly has the intention to collude with third parties to falsely pledge and fraudulently obtain loans; （2） The application of law in the original judgment is incorrect: Nanchu Company has no fault and should not be liable for any compensation; In the process of fulfilling the movable property pledge supervision agreement, Huali Company falsely pledged and Minsheng Bank Wuhan Branch failed to fulfill its review obligations, indicating obvious fault; The determination of the responsibility share of all parties for the losses arising from the performance of the movable property pledge supervision agreement in the original judgment is clearly inappropriate; In the financial loan contract dispute case between Minsheng Bank Wuhan Branch and Huali Company, Huali Company clearly had the criminal intention of colluding with a third party to falsely pledge and defraud loans. The losses of Minsheng Bank Wuhan Branch should be refunded and compensated by Huali Company.



The Supreme People's Court, after retrial review, found that the original judgment had errors in determining facts and applying law, and ordered the Hubei Provincial Higher People's Court to retrial this case.