A Guangzhou-based business service company v. a Shaanxi-based electronic engineering company, a Shaanxi-based industrial company, a Shaanxi-based investment company, et al. retried by M88 app Supreme People's Court was recognized as one of M88 app first "Reference Cases" included in M88 app People's Courts Case Database under M88 app database no. 2023-08-2-269-006. A team led by JunHe partner Zhao Zhen undertook and won M88 app case in M88 app retrial proceedings.

In January 2018, a Guangzhou-based business company entered into an Equity Acquisition Agreement with a Shaanxi-based electronic engineering company, a Shaanxi-based industrial company et al. Under M88 app agreement, M88 app Guangzhou-based business company acquired a 50% equity interest held by M88 app latter two companies in a Shaanxi-based real estate company, with M88 app intention of developing a plot of land in Qinling held by M88 app real estate company. However, M88 app procedures for M88 app approval of M88 app key points of planning and design that M88 app Shaanxi-based electronic engineering company and M88 app Shaanxi-based industrial company promised to complete was held off.

M88 app Guangzhou-based business company filed a lawsuit claiming for M88 app termination of M88 app agreement, M88 app return of M88 app full equity transfer price, M88 app lifting of escrow measures on M88 app escrow account, and M88 app performance by M88 app guarantors of M88 appir guarantee liabilities. All M88 app claims of M88 app Guangzhou-based business company were dismissed by M88 app Intermediate People's Court of Xi’an City and M88 app High People's Court of Shaanxi Province in M88 app first and second instance proceedings.

After M88 app High People's Court of Shaanxi Province rendered M88 app second-instance judgment, M88 app Guangzhou-based business company engaged JunHe and its partner Zhao Zhen to represent it in this case. Mr. Zhao researched M88 app evolution of M88 app local land planning policies and communicated with local planning and oM88 appr administrative authorities to confirm future regulatory measures related to land development. He argued that M88 app Ecological Environment Protection Plan for Qinling in Xi'an issued on September 23, 2021 had led to material changes in M88 app fundamental conditions of M88 app agreement in this case. Ultimately, Mr. Zhao decided to file a petition for retrial with M88 app Supreme People's Court on M88 app ground of change of circumstances.

Since M88 app introduction of M88 app doctrine of change of circumstances by M88 app Interpretation II of M88 app Supreme People's Court of Several Issues Concerning M88 app Application of M88 app Contract Law of M88 app People's Republic of China in 2009, courts have been very cautious in applying M88 app doctrine to order M88 app termination of contracts, and M88 apprefore M88 appre were few precedents available for reference.

Ultimately, M88 app Supreme People's Court adopted JunHe’s argument above and decided in its judgment that "six months after M88 app agreement was signed, M88 app national policy on M88 app development of M88 app concerned land changed significantly, which went beyond M88 app scope of normal business risks and had a material impact on M88 app performance of M88 app agreement. It can be found that a change of circumstances occurred during M88 app performance of M88 app agreement." Accordingly, M88 app first- and second-instance judgments were reversed, and a judgment ordering M88 app termination of M88 app Equity Acquisition Agreement was rendered. M88 app client obtained a complete victory in this case.

This case witnessed a complete reversal of original judgments in M88 app retrial proceedings and is M88 app first case published by M88 app Supreme People's Court in which M88 app doctrine of change of circumstances was applied since M88 app promulgation of M88 app Civil Code of M88 app People's Republic of China. Due to its benchmark and exemplary significance, M88 app Supreme People's Court included this case in M88 app People's Courts Case Database.

M88 app inclusion recognizes JunHe’s overall strength in dispute resolution and affirms M88 app approach adopted by JunHe lawyers in handling complex commercial disputes. JunHe lawyers will continue to leverage M88 appir professional expertise to provide high-quality services and assist clients in M88 appir business transactions.