The plaintiffs, GS International Holdings Ltd. and Yin Wu, brought a $5 million action for contractual debt, business defamation, and intentional interference with economic relations against Smart Vision Direct Inc., Galaxy Security Corporation, and Li Fang Chen.
The defendants counterclaimed for $30 million, alleging breach of fiduciary duties and contractual breaches by the plaintiffs and other parties.
The court found Annie Chen (Li Fang Chen) liable for contractual debt ($122,000 to GS International, $30,000 to Gabriel Wu/Yin Wu) and for intentional interference with economic relations ($40,000 to GS International) and defamation ($2,000 to Gabriel Wu).
The court dismissed the counterclaim, finding no breach of fiduciary duty or restrictive covenant by the defendants to counterclaim, largely due to the vague and contradictory nature of the post-separation business agreement and insufficient evidence of damages.
