ChinaTotalAccess Wins Lawsuit Over Expand Networks in China

February 24, 2011

BEIJING, Feb. 24, 2011 /PRNewswire-Asia/ — ChinaTotalAccess (CTA), the leading high-technology trade and business development service provider, announced the winning of lawsuit over Expand Networks (EXPAND), a WAN optimization device manufacturer in Israel, for its breach of business contract between two parties.

On Dec. 15, 2010, the Beijing Second Intermediate People’s Court pronounced that the judgment in the first trial: Defendant EXPAND’s argument of “Plaintiff(CTA)’s litigation request is not true and not supportive under Chinese law; there is no legal contract ever signed between two parties, therefore no commission shall be collected from EXPAND,” is not in accordance with facts. The court declared judicially that the evidence that CTA provided to the court is very strong in terms of continuity and content relevance; it can prove CTA’s achievement of concrete deal for Expand which is protected by law, thus the court supports CTA’s claim of all unpaid commission from EXPAND. After the court’s decision in the first trial, EXPAND did not appeal to a higher court in the 30 days that the court stipulated.

ChinaTotalAccess signed a business contract with Expand Networks in 2005 to help EXPAND develop business and market in China which included a series of business development works such as product commercial tests in China, business partner selection, customer solicitation, logistics support, marketing etc. During the contract period, CTA has employed a large amount of time and company resources to help EXPAND localize its operation in China. However, at the end of 2006?when CTA made concrete achievements for Expand Networks in the Chinese market, EXPAND breached the contract to unilaterally cut off the commission percentage dramatically which had been agreed to in the contract. After several discussions came into no end, EXPAND ignored all reasonable response requests from CTA. Therefore, CTA submitted its first legal proceedings to the Beijing Second Intermediate People’s Court to request that EXPAND pay all outstanding commissions, interests on late payments and other economic compensations.

Robin Ren, CEO of ChinaTotalAccess, stated when he received court’s written verdict: “It has been 4 years since CTA started to approach EXPAND through legal avenues for our commission payment. The court’s judgment helps us retrieve our deserved partial income from EXPAND. I really hope all business cooperation parties can respect business contracts and do the real work to develop together rather than to fall into dispute and allow a breakdown of cooperation due to lack of integrity and mutual trust.”

Until now, Expand Networks has paid all outstanding commissions to ChinaTotalAccess according to court’s verdict. However, this may not be the end of this dispute because after March 2007, EXPAND never responded to CTA’s request for reporting full purchase-order status in China market according to the contract. The complete sale record information is still under investigation, and CTA is also furthering its request of full disclosure from EXPAND and waiting for a response.

About ChinaTotalAccess

ChinaTotalAccess promotes communication and co-operation between Western and Chinese enterprises and provides a series of China localization services for international high-tech companies. Since its establishment, ChinaTotalAccess has helped many foreign enterprises’ business achieve success and develop markets in China. Now, CTA is setting up an online business development and networking platform to help international companies and organizations realize a much more extensive and efficient cross-border B2B business communications environment. For further information, please visit: www.chinatotalaccess.com

SOURCE Chinatotalaccess Ltd.

Source: newswire

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