Zespri Under Fire by Former Chinese Partners in 33 Million Dollar Lawsuit


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Thu. June 5th, 2014 - by Christofer Oberst

<p>Two former Chinese import partners have filed a lawsuit against kiwifruit exporter Zespri, alleging a <B>breach in the trade relationship</b> and a <B>wrongfully terminated contract</b> between the parties, according to New Zealand news publication OneNews.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Shanghai Neuhof Trade Company and Shanghai Hui Zhang Logistic Limited are suing Zespri for <B>NZ$33.5 million (US$28.3 million) in damages</b> for three causes of action against the company.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Zespri has dismissed the claim in a statement, noting, “These allegations relate to matters that happened last decade. <B>They were thrown out by the Chinese courts and we expect the New Zealand courts will do the same.</b>”<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">More than a year ago, Zespri was convicted of smuggling in China for under declaring customs duties, OneNews reports. The company was fined close to a million dollars and had an employee jailed for five years. <B>Xiongjie Liu</b>, the Chinese importer implicated in the conviction, was also the <B>former chairman of Shanghai Neuhof Trade Company</b>, according to The New Zealand Herald. Liu was found guilty of smuggling and is <B>currently sentenced to 13 years in jail</b>.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">The claim states that the importers built a multimillion dollar cool store facility in Shanghai, at Zespri’s request, to handle kiwifruit imports from New Zealand. After the smuggling scandal, Zespri ended its business relationship with the imports, but Liu’s family claims he was following Zespri orders and has been made a scapegoat by the company. They are currently seeking damages against the exporter.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Stay tuned to AndNowUKnow as we continue following this lawsuit. </p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href=" https://www.zespri.com" target="_new"> Zespri </a></p><hr class="legacyRuler"><hr class="invisible minimal-padding">