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SOUTHERN CALIFORNIA RECORD

Monday, November 4, 2024

Man accuses Chinese Company of Breach of Contract and Fraud

State Court
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In the case of Wenli Zeng v. Hui Rong Dai et al., filed in the Court of Appeal of the State of California, Second Appellate District, Division Five (Case ID: B327009) on April 30, 2024, plaintiff Wenli Zeng is suing defendant Hui Rong Dai and others for breach of contract, fraud, and fraudulent transfer among other claims. The lawsuit stems from a loan agreement and a subsequent supplemental agreement that were entered into in China.

Represented by Law Office of Michael DesJardins and lawyer Michael DesJardins, Zeng had agreed to make a short-term loan to Kunming Haolei Stone Sales Company (Haolei Stone). After Haolei Stone failed to repay the loan within the stipulated time frame, defendant Hui Rong Dai signed a supplemental agreement promising to pay Haolei Stone’s debt. However, this repayment did not occur either. Defendants are represented by Law Offices of Ping C. Shen and lawyer Ping C. Shen.

Zeng sued Dai and others in Los Angeles County Superior Court after both agreements were breached. The trial court ruled in favor of Zeng after a bench trial. The defendants appealed against this ruling asserting it is not supported by substantial evidence and violates California usury laws.

Zeng seeks judgment for breach of contract by failing to repay the principal amount and accrued interest as per the agreements made in China. She also alleges fraud committed by Dai through false representation that he intended to repay the loan when he entered into the supplemental agreement. Additionally, she accuses Dai of fraudulent transfer of funds to his spouse and son to keep the money out of her reach.

Justices Baker, Moor and Lee all concur that the appeal from Mr. Dai, asserting the lack of substantial evidence and that it violates California usury laws are unmeritorious.  The judgments of the lower trail court are affirmed for Mr. Zeng.

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