After an oral hearing the Halogaland Court of Appeal on June 30, 2011, ruled in favor of China Sunergy and determined that REC Wafer was not, and had never been a party to the contract. As of a result of this, there will be no need for a further injunction with regard to a USD50 million bank guarantee.
The Court of Appeal made the following judgment:
1. REC Wafer does not have, and has never had, the rights of a party pursuant to a contract entered into between REC SiTech AS and China Sunergy.
2. REC Wafer is to pay, within two weeks of the pronouncement of the judgment, NOK306,084 and GBP91,502 to China Sunergy as compensation for costs relating to the District Court.
3. REC Wafer is to pay, within two weeks of the pronouncement of the judgment, NOK357,335 to China Sunergy as compensation for costs relating to the Court of Appeal.
REC Wafer has stated they will appeal the decision made by the Court of Appeal.
Previous Development
In 2009 China Sunergy served a writ upon REC Wafer, claiming REC Wafer is not a party to the contract between China Sunergy and the dissolved REC Sitech AS. In July 2010 the Salten District Court in Norway ruled against China Sunergy in the case. The Company appealed the ruling in August 2010. The appeal hearing, originally scheduled for March 2011, was held in June 2011.
In parallel to the main dispute China Sunergy was granted an injunction with regard to a USD50 million bank guarantee raised according to the contract between China Sunergy and the dissolved REC Sitech AS. The Court of Appeal decided that the injunction was to remain in force until the Court of Appeal passed the judgment on the main case in June 2011.
