Article

Topic:

Jurisdiction; .Forum Non Conveniens

Note:

Note: The California Second District Court of Appeal, in an opinion by Epstein, J., reversed the decision of the Los Angeles Superior Court (Cappai, J.) which refused to dismiss or stay California proceedings in which a Hong Kong company sued two Hong Kong citizens residing in California in both California and Hong Kong, alleging that they were duped into signing two LCs. Although the parties had agreed to resolve the dispute under Hong Kong law and all the evidence and witnesses were in Hong Kong, the company argued that the court "should infer Hong Kong courts will not provide due process after Hong Kong is under Chinese control." The trial judge agreed, but the appellate court reversed the decision. The appellate court stated that there was no evidence that due process was imperiled and showed that, pursuant to international treaty, China had promised that the Hong Kong judiciary would remain independent. As a result, the appellate court ordered that the California proceedings be stayed.

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