Creative awarded additional US$2.3 mil in damages as Court tosses out Huawei appeal

Creative awarded additional US$2.3 mil in damages as Court tosses out Huawei appeal

By: 
Stanislaus Jude Chan
25/05/18, 04:11 pm

SINGAPORE (May 25): Huawei International has been ordered to pay Creative Technology and its subsidiary, QMax communications, an additional sum of US$2.3 million ($3.1 million), after the Singapore Court of Appeal today ruled in favour of the latter.

This is in addition to the US$9.3 million and $15.6 million with interest that the High Court had earlier awarded to Creative and QMax.

The Court of Appeal, whose judgment is final and non-appealable, has also awarded costs of the legal proceedings to Creative and QMax.

See: Stay tuned for more Creative suits

Following the judgment today, Creative says it expects to recognise an income arising from the legal proceedings of approximately US$32 million in the quarter ending June 30, 2018.

In the 3Q18 ended March, Creative had posted a 19% drop in earnings to US$3.8 million, and guided that it expects to report an operating loss in 4Q18.

Creative posts 19% drop in 3Q earnings to $5.1 mil

Creative and its subsidiary QMAx had initiated legal proceeding in early 2012 against Huawei, which was the vendor of equipment for its wireless broadband project.

Creative had sought to recover damages and all losses suffered in relation to the wireless broadband project against Huawei for misrepresentation, or alternatively, for breach of contract.

Huawei responded by filing a counterclaim seeking relief which included damages for the alleged wrongful rescission and/or termination of the contract.

The Court in August 2017 held that Huawei was liable for misrepresentation and was grossly negligent. It also held, in the alternative, that Huawei was liable for breach of contract.

Huawei’s counterclaim for wrongful rescission and/or termination was dismissed.

Huawei had then filed an appeal against most of the orders made in the judgment. In turn, Creative had filed a cross-appeal to preserve their legal position.

See: Creative Tech awarded $36 mil in legal proceedings against Huawei

As at 4.10pm, shares of Creative are trading 23 cents higher, or up 4.0%, at $6.04.

Treasure hunting

British collector and expert Harry Fane talks about what it takes to be the world’s foremost authority on vintage Cartier creations and how to spot a good investment buy at his Vintage Cartier Tank watch exhibition at Dover Street Market Singapore (May 20): Harry Fane’s love affair with Cartier began at the tender age of 17. It was the 1970s and his best friend showed up one day, decked out in two must-have items of the era: a pair of Gucci shoes with a gold buckle — “the height of fashion at the time” — and a Cartier watch. “I remember going, ‘Gosh, I really want both of....
Read More >>

Next stop: The interchange of public and private good

SINGAPORE (May 20): Two-minute intervals between trains. Fewer breakdowns. Clean, new buses running at a higher frequency. Bright LED screens displaying details of stops on both buses and trains. To many commuters who are enjoying these benefits, the meltdown of Singapore’s transport system in December 2011, and again in July 2015, is a distant memory. Certainly, services have improved significantly. There are new trains and buses, while existing ones have been spiffed up. There has been an overhaul of the older rail systems, presumably including fixing the grips for the electricity rail ....
Read More >>

Failed Innopac deal portends mining magnate Gutnick’s woes in Australia

SINGAPORE (May 20): The Australian Securities and Investments Commission (ASIC) is seeking judicial permission to wind down mining company Merlin Diamonds. The regulator is also probing into whether its chairman Joseph Gutnick failed in his duties. Gutnick, who is known as “Diamond Joe”, is under investigation for a A$13 million ($12.3 million) loan made by Merlin to AXIS Consultants, a private company linked to him. Merlin shares have been suspended from trading since October 2018. ASIC is seeking an order to appoint Deloitte to liquidate Merlin, owner of the Merlin Diamond Mine Pro....
Read More >>