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ZhongYin (Chengdu) Successfully Turns over the Auto Sales Contract “Fraud” Dispute Claiming for the Largest-Amount Compensation Ever Known for “Refund purchase fee + Compensation 3 times the purchase

2018.12.03  

Author: Zhong yin (Chengdu) law firm   

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On November 30, 2018, a final judgement was made on the largest-amount claim for “refund of price + compensation of 3 times of price” in the history, The case represented by Chen Hui, a senior partner of ZhongYin (Chengdu) claiming for the largest amount compensation ever, namely, “Refund purchase fee + Compensation 3 times the purchase fee” , and which has cast a huge stone in the lake of the automotive industry and even in the whole society.

In September 2016, on the grounds that the Bentley branded car purchased in June 2014 was an “heavily repaired car seen serious accident”, and it has been repaired for several times; and that the dealer Guizhou XX Automobile Sales Service Co., Ltd. did not inform him of such situation in advance; thus committed a “intentional fraud” during its sale, the Plaintiff Yang XX file a lawsuit against this company, together with Volkswagen Group Import (China) Co., Ltd as co-defendant, before Guizhou Higher People's Court, requesting the two defendants to compensate for various losses totaling more than RMB 20 million. The Supreme People's Court made the final judgment after re-trial that: 1. revoke the judgment of the first instance trial, namely that of Guizhou Higher People's Court, by which the court held that the defendants’ acts constitute a “fraud” and ordered the defendants to refund the purchase price and pay a compensation equal to 3 times of the purchase price, totaling RMB 16.5 million, to the plaintiff; 2. the defendants’ acts do not constitute a “fraud”; the defendants should compensate the plaintiff for RMB 110,000, on the grounds that the defendants infringed on the plaintiff’s right to know as consumer; and 3. t the plaintiff should bear most of the litigation costs in the first and second instances of the case totaling more than RMB 300,000.

The case is the first case of “fraud” in the automobile consumption field and even the entire consumption field nationwide that has been concluded by the Supreme People's Court. The conclusion of this case could be a guidance on the law application and jurisdictional measures in future “fraud” cases in relevant fields, and this case will be recorded as a milestone in the history of China's automotive development industry. The attorney, Chen Hui, is highly praised by the client for his essential legal training and careful and meticulous work attitude.