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I also read this at some stage??? I recall reading that SML's purchase of Pokeno was conditional on the vendor removing the covenants and that if they didn't then the vendor was liable for all costs incurred by SML?
This would explain why SML has proceeded to build etc.
Anyway the Supreme Court will now decide (if the hearing is in Wellington I might attend as it could be interesting entertainment value!)
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Now with the China has proposed a new plan regarding their IF market, wouldn't court be looking at an intention of Mr Ye acquiring the land, enjoy the covenants to prevent the competitor extending the manufacturing capacity, then later remove the covenants for himself for business? Also I think SML's movement might be right so that they can show that they are willing to escalate the matter and may be in a better position to settle the matter. I remember FPH and RMD in a patent dispute and how they counter sued each other - I know this is in a quite different perspective though.
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I think SML has already talked to Mr Ye and tried to find a practical solution, then found that he is so stubborn that settling the matter may not be possible. In that case, SML bringing the case up to the Supreme court might be the last practical solution for them. Also unless Mr Ye has purchased the land and doesn't want to settle the matter for the other reason which in case SML will anyway need to abandon the factory, they may be able to come to the practical solution before the Supreme court decision.
It is risky, but SML doesn't seem to have many options available now.