Actress Cecilia Cheung Testifies in Multimillion-Dollar Contract Dispute

Hong Kong—Acclaimed actress Cecilia Cheung took the stand at the High Court today, entering a high-stakes legal battle where her former manager and agency are seeking millions, alleging breach of contract and failure to fulfill numerous film obligations.

Cheung, speaking in a local dialect after taking a Christian oath, offered testimony in the ongoing civil trial stemming from a lawsuit filed by余毓興 (Yu Yuxing), her former manager, and Aeg Entertainment Group Limited. The plaintiffs contend that the actress failed to honor several key agreements, resulting in significant financial loss. The court proceedings offered a dramatic pivot point in the complex dispute, which dates back over a decade.

Allegations of Unfulfilled Film Commitments

The core of the dispute centers on two alleged contracts signed in 2011 and 2012. According to documents filed by the plaintiffs’ counsel, Stephen Yim, Cheung and Yu entered into a “Worldwide Exclusive Management Contract” in July 2011, followed by a “Cecilia Cheung Two-Film Commitment Contract” in May 2012.

The lawsuit asserts that Yu advanced a total of 42.76 million Hong Kong dollars (approximately $5.46 million USD) to Cheung as pre-paid commitments. In return, she was allegedly obligated to star in a total of six films. The plaintiffs claim that Cheung subsequently breached both the film contracts and the managerial agreement, reportedly failing to complete the required cinematic roles. Consequently, Yu and Aeg Entertainment are seeking damages totaling at least HK$12.76 million.

Defense Challenges Contract Authenticity

Cheung’s legal defense, led by barrister Dennis Lam, vigorously challenged the validity of the plaintiffs’ claims. The defense is disputing the authenticity of the overarching “Worldwide Exclusive Management Contract,” suggesting it may have been forged. Crucially, the defense argues that the signature on the management contract purporting to be Cheung’s was actually impersonated by another party.

Furthermore, Cheung’s representation contests the plaintiffs’ assertion that Cheung neglected her duties. Instead, the defense argued that it was Yu who ultimately decided not to proceed with casting Cheung in subsequent projects, effectively changing the terms of the engagement.

The actress’s appearance on the witness stand marks a significant development in the case, which has been closely watched by the regional entertainment industry. Civil cases often rely heavily on the credibility of handwritten documents and the sworn testimony regarding the circumstances under which agreements were reached.

Legal Backdrop and Industry Implications

The case, filed under High Court Action number HCA1227/2020, highlights the often-opaque nature of exclusive talent contracts in the Asian film industry, particularly concerning pre-payment arrangements and the specific number of mandatory projects. Disputes over contract fulfillment, especially those involving large upfront sums, are not uncommon but rarely reach this stage of public litigation involving a star of Cheung’s prominence.

The outcome of this trial could set precedents regarding the enforceability of exclusive agreements where significant pre-payments are exchanged, and the burden of proof required to establish forgery versus genuine breach of contract. Legal observers anticipate several more days of compelling testimony as the court seeks to untangle the financial and contractual specifics of the decade-old business relationship between the manager and the celebrity.

Wang Renchang, Court Correspondent, contributed to this report.

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