Lin Gengxin to Pay Management Company 1.95 Million RMB for Breaking Contract
After being mired in contract disputes for a year, mainland Chinese actor Lin Gengxin (林更新) and his management company have finally reached an agreement, which will lead to the termination of Lin Gengxin’s contract and his forking over 1.95 million RMB as compensation.
In February of this year, Lin Gengxin sued his management company, Chinese Entertainment Shanghai, for failing to fulfill their end of the contract, which had been signed in 2010. According to the terms of their agreement, Chinese Entertainment Shanghai was obligated to allocate a manager exclusively for Lin Gengxin, and to assist in furthering his career in the entertainment industry.
Although Lin Gengxin’s popularity soared after Bu Bu Jing Xin <步步驚心>, it was rumored that he was discontent with his company’s over-promotion of leading actress Cecilia Liu (劉詩詩). As a result, in December of last year, he submitted a request to have his contract rescinded. When the company rejected his request, Lin Gengxin filed a lawsuit, hoping that the court would verify the termination of his contract that month.
Chinese Entertainment Shanghai then issued a counter-claim, requesting Lin Gengxin to continue carrying out the terms of his contract. The company also requested that he pay compensation for any related losses, since he had begun attending product endorsement activities of his own volition, thus violating his contract. Under their agreement, Chinese Entertainment Shanghai has the right to demand 30 percent of his revenue to cover any monetary losses.
After conducting two investigations, the First Intermediate People’s Court in Shanghai concluded that Chinese Entertainment Shanghai had not violated any of the contract’s agreements. As a result, Lin Gengxin possessed no legal reason to request an end to his contract.
The court ordered Lin Gengxin to pay Chinese Entertainment Shanghai a total of 1.95 million RMB as compensation. In order to avoid further conflicts between the two parties, his management contract will also be terminated.
This article is written by Joanna for JayneStars.com.