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Cases & Deals

January 23, 2020

Suzhou Allpro Certified Public Accountants Co. Ltd. obtained a $15 million judgment in the first-of-its-kind U.S. litigation

King & Spalding won a first-of-its-kind U.S. litigation helping Suzhou Allpro Certified Public Accountants Co., Ltd. (“Allpro”) – the Chinese bankruptcy administrator of Sure Heat Manufacturing (Suzhou) Co. Ltd. (“Sure Heat China”) – to collect debts from its former U.S. parent company (Sure Heat Manufacturing, Inc.) and corporate affiliate (SHM International Corporation). An 8-person jury in the U.S. District Court for the Northern District of Georgia unanimously returned a complete plaintiff’s verdict in favor of Allpro. While the Court previously granted Allpro summary judgment on a $10 million promissory note, the jury found that Sure Heat Manufacturing – a manufacturer and importer of gas grills, fireplace logs and outdoor heaters – was liable on a $5 million promissory note to its former manufacturing subsidiary (Sure Heat China).

The jury also concluded that Sure Heat Manufacturing and its individual owner had evaded contractual responsibilities by diverting the business capacity and intellectual property of Sure Heat Manufacturing to an affiliate, SHM International, for its use in conducting the exact same business.