Hong Kong export-trading firm Li & Fung has been embroiled in a bitter row in relation to about HK$1 million it allegedly owed to a mainland factory.
The plaintiff was a Zhejiang-based garment firm that blamed the blue chip for failing to settle the amount in dispute since 1998.
The claim arose from the termination of a contract under which Li & Fung bought apparel from the plaintiff, according to a complaint to the Business Post.
Li & Fung sources merchandises from cheaper-cost countries and exports them to the United States and Europe.
According to the verdict of the Zhejiang provincial supreme court, Li & Fung was ordered to pay about HK$1 million including the balance of payment for goods and interest within 30 days from December 31, 1998. The verdict effectively rejected Li & Fung's appeal.
The case raises an issue facing many companies doing business in the mainland who are concerned about the Chinese legal system and would prefer to have cases settled in Hong Kong.
