Zhengzhou Lvdu Real Estate Group Co Ltd v Shu

Zhengzhou Lvdu Real Estate Group Co Ltd, a company incorporated in China, sought to enforce a judgment rendered by the Zhengzhou Intermediate People’s Court of Henan Province in Australia. The judgment was against Shu, a resident of Australia, regarding a dispute over unpaid invoices for real estate services. The dispute centred on whether the Australian courts should recognise and enforce the Chinese judgment, particularly given concerns over the fairness of the proceedings and the recognition of judgments from Chinese courts under Australian law.

The primary legal issue before the court was whether the Australian courts should recognise and enforce the judgment of the Zhengzhou Intermediate People’s Court, considering the potential irregularities in the proceedings in China and the applicable principles of private international law. The court had to examine the fairness of the proceedings in China, the enforceability of the judgment under Australian law, and whether there were any grounds for refusing recognition or enforcement of the judgment. Additionally, the court needed to consider whether the judgment was consistent with Australian public policy.

The court found that the judgment of the Zhengzhou Intermediate People’s Court should not be recognised or enforced in Australia. The court identified significant irregularities in the proceedings in China, including the lack of procedural fairness and the absence of an opportunity for the respondent to adequately defend the claim. The court also noted concerns about the transparency and impartiality of the Chinese judicial system. Based on these findings, the court concluded that enforcing the Chinese judgment would contravene Australian public policy, particularly in relation to the protection of due process rights. Consequently, the court refused to recognise or enforce the Chinese judgment.