Tainted-milk parents lose claim against HK shareholder of Sanlu
Four mainland parents of babies made ill by tainted milk have lost their claim for compensation against a Hong Kong company.
The Small Claims Tribunal adjudicator yesterday struck out the case against Fonterra Brands (China), a Hong Kong incorporated company that had 43 per cent of shares of now-bankrupt Sanlu Dairy Group.
Ada Yim Shun-yee said the entire food safety saga had taken place on the mainland. The company - as a shareholder of the manufacturer of melamine-laced dairy products - did not owe a duty of care to the victims because it did not have controlling power. Their claims should be pursued on the mainland, she said.
The parents, whose children have kidney stones and other urinary problems, are deciding whether to lodge an appeal.
They sued Fonterra Brands (China) for between HK$12,369 and HK$33,490 early this month, accusing the company of delaying the release of information about the contamination for six weeks, failing in its responsibility to oversee Sanlu and making profits from tainted milk before the saga came to light.
Melamine, an industrial chemical used in plastic and glue, was added to milk to fake a high protein content. At least six children died and 300,000 others were affected.
Yim accepted a submission by Fonterra that the Hong Kong court was not an appropriate place to deal with the claims because the victims were mainlanders and the incident, which took place on the mainland, had little connection with Hong Kong.
'I do not consider Hong Kong is an appropriate forum nor that the claimants have any cause of action against the defendant under the laws of Hong Kong.'
She said mainland courts were 'undoubtedly a more appropriate forum', referring to evidence submitted by the claimants that the People's Court had said it was prepared to try any claims for damages from victims of toxic dairy products.
'All the babies and their families who suffered do have my sympathy,' Yim said as she concluded the case.
Outside, claimant Zhou Xiong said: 'We are not familiar with Hong Kong law. I am not particularly disappointed. I still hold out hope to win an appeal. We have to be patient.'
Mainland lawyer Peng Jian, who assisted the claimants, said: 'Theoretically, the adjudicator is correct to say mainland courts are the better place to handle the claims but it is very difficult to practise it.'
He said courts there had ignored their applications.
David Matthews, for Fonterra, said the company had the 'greatest respect' for the claimants, but the best way for them to proceed was through the compensation fund set up by the central government.
