Nippura Co., Ltd had signed a contract with Hainan Atlantis Commerce and Tourism Development Co., Ltd. ("Atlantis"), supplying the latter of Acrylic Aquarium panels and consumables with on-site installation services and a 10-year warranty on the quality, material defects and workmanship of the panels and consumables it supplies
On June 16, 2017, in the Atlantis hotel project in Haitang Bay, Sanya, Hainan, invested by Atlantis, the acrylic wall of aquarium broke during the filling process, resulting in a large amount of water flooding into Level B1 and B2, causing serious damage to the walls under renovation and the mechanical and electrical equipment in installation. The accident not only caused the loss to the acrylic aquarium itself, but also caused the loss to 16 construction units, and the total amount of claimed by 16 units was RMB 39,934,207 yuan. According to the on-site inspection and assessment conducted by Cunningham Lindsey China, the reasonable amount of loss was RMB13,035,454.
Atlantis insured China Pacific Insurance (Group) Co Ltd Hainan Branch (hereinafter referred to as "CPIC Hainan") for Construction All Risks (including third-party liability insurance) in connection with the project. CPIC Hainan compensated Atlantis in accordance with the insurance contract, with a compensation amount of RMB 13,005,000, and obtained the right of subrogation according to law.
CPIC Hainan entrusted our firm to represent them in the arbitration. We brought up an arbitration before the Hong Kong branch of the China International Economic and Trade Arbitration Commission against Nippura Co., Ltd on behalf of CPIC. Lawyer Ding Ting of our firm participated in the arbitration hearing as an agent. The arbitration was in English. The firm's foreign business team, including Dr. Lin Cuizhu, director Colin Y F Yang participated in the discussion. At our best efforts, the arbitral tribunal fully supported our arbitration claim: Nippura Co., Ltd. compensated CPIC Hainan for the capital of RMB 13,005,000 and interest of RMB 1,424,530.06, and for the lawyer's fees of RMB 3,884,251.29 as well as the arbitration costs of HK$476,648.
After the arbitration award, our firm continued to work on the execution, and in the end, Nippura Co., Ltd. paid a total of US$2,851,790 (RMB 18,046, 127), including the principle and interest, lawyer's fees and arbitration costs in full to CPIC Hainan, which was a very good result.