Cecilia Cheung Sued By Former Manager for HKD12 Million

Cecilia Cheung (张柏芝) was sued the year before last by her former manager Yu Yuk-hing (余毓兴) and the management company AEG Entertainment Group Limited on claims that she failed to fulfil the film contract and violated their management agreement, after receiving more than HK$40 million in advance payment for film fees.

Summary of Legal Dispute

Seeking HK$12.76 million in compensation, the case was heard on December 3 at the High Court. According to the statement of claim, the two parties signed an eight-year term Exclusive Global Management Agreement in July 2011. Yu agreed to pay her HK$40 million in advance in exchange for her participation in four designated films. In May 2021, they signed another two-film agreement for which Yu advanced an additional HK$2.76 million, requiring her to star in two more films.

Yu alleged that Cecilia Cheung failed to fulfil the film agreement and breached the management contract, causing losses to him and his company for which he is seeking at least HK$12.76 million in compensation, and disclosure of her income statements from 2015 to July 2019.

Yu Claims She Wanted Him to Become Her Manager

When testifying in court, Yu said that he had long been friends with Cecilia’s father and had known her for many years, and she addressed him as “godfather.” The defence, however, argued that Cecilia did not know Yu prior to 2011, had never discussed details of her divorce from Nicholas Tse (谢霆锋) with him, and would not address him as her “godfather.” Yu disagreed. The defence added that initially Cecilia did not approach Yu directly; instead, she asked her assistant whether there was any way to obtain HK$40 million to complete a property transaction.

As for the management contract in question, the defence argued it was proposed by Yu, not—as stated in Yu’s witness statement—motivated by sympathy for Cecilia’s circumstances, but purely for commercial considerations.

Yu Suggested for Cecilia to Build Strong Woman Image?

Yu disagreed, testifying that after Cecilia’s divorce, he advised her to build a “good mother” and “strong woman” public image, and later to set up her own studio. He also claimed that Cecilia suggested he should become her manager and provide HK$40 million to help her resolve property matters.

However, because Yu’s funds were then tied up in Mainland China, he approached Bona Film Group’s Yu Dong (于冬), who requested that she sign a two-film contract as security. Although it was uncertain at the time whether the HK$40 million could be secured, Cecilia, deeply grateful for the help, reportedly said she would sign the management agreement with Yu regardless.

The judge then noted that the management contract Cecilia signed did not have a direct connection with the HK$40 million. Yu maintained that Cecilia had previously asked him to be her manager, and that he had told her Yu Dong had not confirmed whether the HK$40 million could be provided, but Cecilia insisted she would sign the management agreement no matter what.

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