Why did Luckin Coffee file an appeal in the trust dispute?

Luckin Coffee (China) Co., Ltd. has appealed a first-instance civil judgment in a trust dispute against Yousheng (Tianjin) Technology Development Co., Ltd., Yousheng Chengyi (Tianjin) Information Technology Co., Ltd., and Shenzhou Ucar Co., Ltd. On October 27, the Kunming Intermediate People's Court in Yunnan served the appeal statement by public announcement.

The case centers on a repurchase price of more than 560 million yuan plus interest, and whether Shenzhou Ucar must cover the shortfall make-up liability. The plaintiff disagreed with the first-instance ruling and filed the appeal. How the higher court treats that liability question will shape how similar trust disputes in the coffee sector are resolved.

New developments have emerged in the trust dispute case between Luckin Coffee (China) Co., Ltd. and Yousheng (Tianjin) Technology Development Co., Ltd., Yousheng Chengyi (Tianjin) Information Technology Co., Ltd., and Shenzhou Ucar Co., Ltd. Dissatisfied with the first-instance civil judgment, Luckin Coffee has filed an appeal with the court. The case involves a repurchase price of over 560 million yuan plus interest, with the central dispute being whether Shenzhou Ucar should bear the shortfall make-up liability. This article will outline the background of the case, the first-instance judgment, and Luckin Coffee's appeal requests to help readers understand this high-profile commercial dispute. Follow Coffee Workshop and Front Street Coffee for more professional coffee industry news.

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Because the plaintiff Luckin Coffee (China) Co., Ltd. disagreed with the civil judgment, it has now filed an appeal in the dispute case against Yousheng (Tianjin) Technology Development Co., Ltd., Yousheng Chengyi (Tianjin) Information Technology Co., Ltd., and Shenzhou Ucar Co., Ltd., among others!

According to information disclosed on the Tianyancha App, on October 27, the Kunming Intermediate People's Court of Yunnan Province served by public announcement the appeal statement in the trust dispute case to Yousheng (Tianjin) Technology Development Co., Ltd. and others, requiring these companies to bear corresponding liability for the repurchase price of over 560 million yuan and interest obligations under the first-instance judgment.

Public records show that Yousheng (Tianjin) Technology Development Co., Ltd. was established on November 15, 2018, with its registered address at the East Zone of Airport Business Park, intersection of Huanhe North Road and Zhongxin Avenue, Tianjin Free Trade Test Zone (Airport Economic Area). Its business scope covers computer software technology, development, transfer, and consulting services; computer system integration services; and the sale of computers and auxiliary equipment, among others. Its legal representative is Li Fumin. The legal representative of Yousheng Chengyi (Tianjin) Information Technology Co., Ltd. is Li Fumin and Jiang Luwen.

The legal representative of Shenzhou Ucar Co., Ltd. is Lu Zhengyao, founder of Luckin Coffee. The company was established on June 27, 2022, and is located at Floor 1 and Floor 2, Zone C, North Building, North Nursery Factory of the Western Academy of Agricultural Sciences, No. 2 Dazhongsi Food Factory, Haidian District, Beijing. Its business scope includes online taxi-hailing services; software technology development and technical services, among others.

This repurchase payment dispute had already been served on the court on April 27, 2022. The complaint shows that the plaintiff Luckin Coffee (China) Co., Ltd. requested an order that the defendant Yousheng (Tianjin) Technology Development Co., Ltd. pay the plaintiff a repurchase price of over 560 million yuan plus interest, and also requested that the defendant Shenzhou Ucar Co., Ltd. bear the litigation costs and preservation costs of the case.

At the same time, the plaintiff requested confirmation that it enjoys a pledge right over 40.36 million shares of Shenzhou Ucar Co., Ltd. held by the defendant, and that it has priority in receiving payment from the proceeds from the disposal of such pledged shares within the scope of the pledge guarantee.

The first-instance judgment document was served on August 16, 2022. The document shows that the first-instance court ruled that the defendant Yousheng (Tianjin) Technology Development Co., Ltd. should pay the plaintiff Luckin Coffee (China) Co., Ltd. a repurchase price of over 560 million yuan plus interest, and that the plaintiff has the right to priority in receiving payment, within the scope of a partial amount, from the proceeds obtained by discounting, auctioning, or selling 36.99 million shares of the defendant Shenzhou Ucar pledged by the defendant Yousheng Chengyi (Tianjin) Information Technology Co., Ltd.

Subsequently, the court dismissed the plaintiff Luckin Coffee (China) Co., Ltd.'s other litigation requests. The case acceptance fee was 2,929,467 yuan, of which the defendant Yousheng (Tianjin) Technology Development Co., Ltd. bore 2.9 million yuan, and the plaintiff Luckin Coffee (China) Co., Ltd. bore 29,467 yuan.

The announcement content shows that the plaintiff Luckin Coffee (China) Co., Ltd. was dissatisfied with the original civil judgment and filed an appeal. The appeal request is to amend the judgment so that the appellee bears the shortfall make-up liability for Yousheng (Tianjin) Technology Development Co., Ltd.'s payment obligations under items one and two of the first-instance judgment (that is, the repurchase price of over 560 million yuan and corresponding interest).

It also requests the court to rule in accordance with law that the second-instance case acceptance fee be borne by the appellee Shenzhou Ucar Co., Ltd., and that the property preservation fee also be borne by the appellee Shenzhou Ucar Co., Ltd. and Yousheng (Tianjin) Technology Development Co., Ltd.

Image source: Internet

The above content is compiled by CoffeeHunters, a coffee news website.