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Gau Shan Co. v. Bankers Trust Co.

United States Court of Appeals for the Sixth Circuit
956 F.2d 1349 (1992)

Written by Mary Phelan D'Isa, JD

Facts

Gau Shan (plaintiff), a Hong Kong borrower, filed suit in a United States district court against Bankers Trust Company (Bankers) (defendant), its American lender. Gau Shan alleged fraud, deceit, and negligence in connection with a note it secured to finance a cotton transaction with the Republic of China. Gau Shan filed its American suit before Bankers could sue it in Hong Kong. The federal district court issued a preliminary injunction enjoining Bankers from filing a lawsuit in Hong Kong against Gau Shan. Bankers appealed and argued that the district court misinterpreted the relevant principles of international comity when it issued the injunction.

Rule of Law

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Issue

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Holding and Reasoning (Ryan, J.)

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