In September 2023, Li Jing and Wang Li of King&Capital Law Firm were appointed to represent the case of “Dispute over compensation for breach of contract in investment and cooperation”, and received a judgment on November 20, 2024 in favor of the investor, supporting its claim for compensation.

In May 2020, the two parties signed the “investment cooperation agreement” to cooperate in the development, construction and operation of XX project, and share the profits according to the proportion, the project was completed and normal operation, the two sides according to the agreement to share their profits, but in May 2023, the project was ordered to dismantle by the land department due to the problem of the nature of the land, which resulted in a huge loss of the investor's construction and operation costs.

After accepting the commission, the lawyer investigated the investment and cooperation between the two parties and found that the cooperation mode between the two parties was as follows: the investor provided the investment, the other party provided the land, and the investor invested, constructed and operated the land provided by the other party, and gave the other party a share of the profits. The project in question was ordered to be dismantled by the land department because of the land provided by the other party did not comply with the contract, so the other party knew that the nature of the land could not be used for commercial operations, but the land was used to attract foreign investment, causing huge investment losses, and filed a lawsuit, requesting the other party to compensate for all the investment losses of the investor.

In the trial, the two sides on the investment loss scope and the two sides of the fault responsibility ratio and the cooperation of the other party's cooperation subject submitted a large amount of evidence and carried out a heated debate, finally, the court found that the two sides according to the ratio of 7:3 responsibility, the cooperation of the other party's three companies subject to joint and several compensation to the investor.

Lawyer advice:

Before the investment cooperation, the investor should do the corresponding due diligence obligation and should be in the cooperation of the other party to provide complete land rights, building permits and related approvals before the construction of housing.