DeHeng Secured Victory for Construction Dispute Case at Yunnan High People’s Court, Invalidating Fictitious Settlement Agreement of RMB 99 Million

2025-08-13

Recently, DeHeng’s Beijing and Kunming Offices collaborated to achieve another significant success, successfully representing a subsidiary of the central state-owned enterprise China State Construction Engineering Group (CSCEC) in a construction subcontract dispute with a company in Southwest China. The Yunnan High People’s Court issued a final judgment, overturning the first-instance ruling and rendering a revised judgment directly. The Yunnan High People’s Court adopted the arguments presented by DeHeng’s lawyers, invalidating the RMB 99 million Settlement Agreement on which the first-instance court had based its decision, thereby averting substantial economic losses for the central state-owned enterprise.

In the second instance of this case, lawyers Li Le from DeHeng’s Beijing Office and Wang Huaizhi from DeHeng’s Kunming Office jointly represented the CSCEC subsidiary. They participated in eight court hearings, where they presented key arguments on the disputed issues and supplemented evidence regarding the formation process and related documentation of the fictitious Settlement Agreement. Ultimately, the Yunnan High People’s Court, after comprehensively considering the evidence from all parties, adopted the arguments of DeHeng’s lawyers, directly invalidated the fictitious Settlement Agreement worth RMB 99 million, and calculated the actual project cost through four rounds of cost appraisal, safeguarding the state-owned assets and legitimate rights and interests of the client.