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1、ProductliabilityinChinaRedressbyrelocationVictimsoftaintedChinesegoodsseekcompensationinHongKongJun3rd2010
2、FromtheprinteditionHemayfindhelpinHongKongMANYfirmsdoingbusinessinChinaagreetouseHongKongasaforumtoresolvelegaldisputes,inanefforttoavoidChina'sno
3、toriouslyarbitraryandcorruptcourts.Nowsomeoftheircustomershavehadasimilaridea:thefamiliesoffourchildrenpoisonedinChinabytaintedmilkin2008havesuedinHongKongforcompensation.OnMay27thHongKong'sSmallClaimsTribunal,whichhandlesclaimsofHK$50,000($6,400)orlessw
4、ithouttheintercessionoflawyers,dismissedthecase,largelyonjurisdictionalgrounds.Butthatisunlikelytobethelastword:anappealisintheworks.Althoughthesumsinvolvedaretrivial(nomorethanHK$35,000inanyofthefourcases),ifthecomplaintsweretosucceedtheramificationswou
5、ldbeenormous.TheplaintiffshadsuedFonterra,adairyco-operativebasedinNewZealand.IthasasubsidiaryregisteredinHongKongthathelda43%stake,andthreeoutofsevenboardseats,inSanlu,adairyfirmthatadulterateditsproductswithmelamine,causingmassillness.Sanluhassincegone
6、bust;fourofitsseniorexecutiveshavebeenjailed.Butmanyofthevictimshavereceivedlittleornocompensation.Inrejectingthepetition,thecourtnotedthattheplaintiffsresidedontheChinesemainland,thetaintedgoodshadbeenmadeandsoldthere,andtheallegedinjuryinflictedthereto
7、o,makingChinatheappropriatevenueforatrial.Moreover,FonterrawasnotacontrollingshareholderandconsequentlycouldnotbeheldresponsibleforSanlu'sconduct.ButPengJian,aBeijinglawyeradvisingthefamilies,hasarguedthatinpracticecourtsinthemainlandareclosedtotheplaint
8、iffs.SharonHom,thedirectorofHumanRightsinChina,anNGO,contendsthatthebaseofthedefendant,ratherthantheplaintiffs,isthemostimportant.GiventhatFonterrafollowedacommonpracticebyusingHongKongasalegalbaseforitsChineseoperations,thatargumentaloneissendingashudde
9、rthroughtheterritory'sbusinesses.SoistheideathatminorityownersofChinesejointventurescouldbeheldliablefortheactionsoftheirpartners,sinceChineselawoftenlimitsforeignfirmstominoritystakes,andforeignshareholdersfrequentlycompl
