China Construction Bank lawsuit

Photo by Lance Joseph Lambach中国建设银行诉讼案摘要(中文版)

In October 2009 Liu Bo Shan filed a lawsuit in US Federal court in New York against his former employer, China Construction Bank Corporation.  He claimed that the bank was responsible for torture, beatings, sexual abuse and prolonged arbitrary detention that he suffered at the hands of Chinese police.  Mr. Liu had been an employee of the bank from 1988 to 1993.  During this time, he was assigned to audit certain loan discrepancies, and his audit uncovered that the bank had issued false bank deposit certificates.  Following Mr. Liu’s audit report, the bank terminated his employment.  Mr. Liu alleges that the bank subsequently fabricated charges against him, accusing him of consorting with a prostitute on bank property, and had Mr Liu arrested.  After Mr. Liu’s arrest, he was tortured, beaten and sexually abused by the police.

In March 2010 China Construction Bank moved to dismiss Mr. Liu’s claims.  On 28 June 2010, the court granted the bank’s motion to dismiss.  The court found that the facts Mr. Liu alleged in his complaint were not sufficient, even if they could have been proven, to establish the bank’s responsibility for the abuses he suffered.  On 5 May 2011 the US Court of Appeals for the Second Circuit affirmed the lower court’s dismissal of the case. 

- “A Second Circuit Panel Follows Kiobel, Dismisses ATS Claim”, Russell Jackson, Consumer Class Actions & Mass Torts, 10 May 2011
- “China’s banks face overseas pitfalls”, Jamil Anderlini, Financial Times, 19 Nov 2009
- “Asylee Says Chinese Bank Had Him Tortured”, Adam Klasfeld, Courthouse News Service, 12 Oct 2009

- US Court of Appeals for the Second Circuit: [PDF] Liu Bo Shan v China Construction Bank Corporation - Summary Order [affirming lower court’s dismissal], 5 May 2011
- US District Court for the Southern District of New York: Liu Bo Shan v China Construction Bank Corp. - Opinion & Order [dismissing the case], 28 Jun 2010

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Article
12 October 2009

Asylee Says Chinese Bank Had Him Tortured [USA]

Author: Adam Klasfeld, Courthouse News Service

A political asylee claims the China Construction Bank had him…imprisoned and tortured to prevent him from exposing a vice president's fraud. Liu Bo Shan, who was granted asylum in 1997, sued the New York City branch of China Construction Bank under the Torture Victims Protection Act and the Alien Tort Statute. In his federal complaint, Shan…has documented the "open hostility and lack of an independent judiciary" when he tried to redress the abuse in China…In…1993, Shan says he was assigned to audit a loan discrepancy…and noticed that China Construction Bank Vice President…had issued false bank deposit certificates. Shan claims that after he submitted an audit report to a director…the bank called the police knowing that it "was substantially certain he would be tortured."…

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Article
19 November 2009

China’s banks face overseas pitfalls

Author: Jamil Anderlini, Financial Times

[A] former CCB [China Construction Bank] employee…filed a civil case against the bank in a New York court, alleging he was…arrested and tortured in 1993 after he made allegations of illegal banking activity to the bank’s audit director…Mr Liu decided to bring the lawsuit against CCB…because personal jurisdiction against the bank became available when it established its first US branch…in New York. The lawsuit said Mr Liu had not brought a case against the bank in China because cases involving the Chinese police cannot be adequately heard and redressed there…CCB told the Financial Times: “…Liu Bo Shan was involved…in an activity that violated public order and for that the local public security organs punished him...Mr Liu…is suing CCB under the Alien Tort Claims Act and the Torture Victims Protection Act.

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Article
28 June 2010

Shan v. China Construction Bank Corp. Opinion & Order [USA]

Author: US District Court for the Southern District of New York

Chinese national...Shan... sued his former employer, China Construction Bank... alleging torture...in violation of customary international law...pursuant to the Alien Tort Statute...In seeking to hold the Bank liable...the plaintiff asserts three alternative theories...First,...the Bank...may be held directly liable as a principal. Second,...the Bank [may be] liable as a aider-and-abettor of the Chinese police. Third,...the Bank [may be] a co-conspirator of the Chinese police...Plaintiff...failed to state a plausible theory of...liability...China Construction Bank...motion to dismiss is granted...

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Lawsuit
18 February 2014

China Construction Bank lawsuit

Author: Business & Human Rights Resource Centre

In October 2009 Liu Bo Shan filed a lawsuit in US Federal court in New York against his former employer, China Construction Bank Corporation.  He claimed that the bank was responsible for torture, beatings, sexual abuse and prolonged arbitrary detention that he suffered at the hands of Chinese police.  Mr. Liu had been an employee of the bank from 1988 to 1993.  During this time, he was assigned to audit certain loan discrepancies, and his audit uncovered that the bank had issued false bank deposit certificates.  Following Mr. Liu’s audit report, the bank terminated his employment.  Mr. Liu alleges that the bank subsequently fabricated charges against him, accusing him of consorting with a prostitute on bank property, and had Mr Liu arrested.  After Mr. Liu’s arrest, he was tortured, beaten and sexually abused by the police.

In March 2010 China Construction Bank moved to dismiss Mr. Liu’s claims.  On 28 June 2010, the court granted the bank’s motion to dismiss.  The court found that the facts Mr. Liu alleged in his complaint were not sufficient, even if they could have been proven, to establish the bank’s responsibility for the abuses he suffered.  On 5 May 2011 the US Court of Appeals for the Second Circuit affirmed the lower court’s dismissal of the case. 

- “A Second Circuit Panel Follows Kiobel, Dismisses ATS Claim”, Russell Jackson, Consumer Class Actions & Mass Torts, 10 May 2011
- “China’s banks face overseas pitfalls”, Jamil Anderlini, Financial Times, 19 Nov 2009
- “Asylee Says Chinese Bank Had Him Tortured”, Adam Klasfeld, Courthouse News Service, 12 Oct 2009

- US Court of Appeals for the Second Circuit: [PDF] Liu Bo Shan v China Construction Bank Corporation - Summary Order [affirming lower court’s dismissal], 5 May 2011
- US District Court for the Southern District of New York: Liu Bo Shan v China Construction Bank Corp. - Opinion & Order [dismissing the case], 28 Jun 2010