Shanghai Breeze Technology Co Ltd v. Gravois Aluminum Boats L L C
6:22-cv-02038
| W.D. La. | Mar 30, 2024Background
- Plaintiff Shanghai Breeze Technology (a Chinese corporation) contracted twice in 2019 with Gravois Aluminum Boats (Louisiana-based) to build two boats ("21 Relentless" and "29 Defiant"), paying significant deposits and, for one vessel, the full price.
- Gravois allegedly failed to deliver the vessels, leading Shanghai Breeze to sue for breach of contract and related claims.
- Defendant Gravois moved for summary judgment, arguing contracts became unenforceable after a January 2023 U.S. "Denial Order" revoked export privileges of Ge Song Tao, who contracted on behalf of Shanghai Breeze and was later convicted for export law violations (involving different vessels).
- The Denial Order, issued years after contract formation and attempted delivery, bars Ge and related parties from being involved in U.S. exports, but was not directed at these specific vessels.
- This case centers on whether later-issued export restrictions retroactively voided pre-existing commercial contracts, and if so, what remedies (damages/restoration) are appropriate under Louisiana law.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether contracts are absolutely null due to Denial Order | Contracts were valid when made; Denial Order does not retroactively void them | Denial Order made contracts illegal/unenforceable | Court: Contracts not absolutely null as a matter of law |
| Whether contract performance violates U.S. export controls | No evidence vessels violated export regs; no forfeiture/seizure shown | Performance would contravene U.S. export policy | Court: No evidence supporting illegality or forfeiture |
| Appropriate remedy if contracts deemed null | Restoration/damages should be available | No recovery allowed under public policy | Court: Louisiana law allows restoration/damages if null |
| Whether summary judgment is warranted | Material facts remain; discovery needed | No genuine dispute; entitled to judgment | Court: Summary judgment denied; case proceeds |
Key Cases Cited
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (standard for summary judgment: genuine issue of material fact)
- Sossamon v. Lone Star State of Tex., 560 F.3d 316 (summary judgment, material fact analysis)
- Hamilton v. Segue Software, Inc., 232 F.3d 473 (burden shifting in summary judgment context)
- Brumfield v. Hollins, 551 F.3d 322 (summary judgment; inferences viewed for nonmovant)
- Holt v. State Farm Fire & Cas. Co., 627 F.3d 188 (choice of law in diversity cases)
- River Rental Tools, Inc. v. Smith Power Solutions, LLC, 342 So. 3d 1052 (La. App. 4 Cir. 2022) (object of sale must be illicit or immoral to void a contract under Louisiana law)