Wang v. FangAnnotate this Case
Plaintiffs Zhi An Wang, Yu Liu, Bo Xu, Yanhong Sun, Yong Li, Tao Chen, Lina Tao, Bin Qu, Qingjiang Li, Tao Jing, Xingchuan Wu, Jun Shi, Ke Zhang, Zhuo Xiao, and Yugang Xie appealed a trial court order granting defendants Shimin Fang and his spouse, Juhua Liu's motion to dismiss plaintiffs’ complaint on the grounds of forum non conveniens (motion). Fang and Juhua Liu resided in San Diego County. Plaintiffs all resided in the People’s Republic of China. Fang created a website in China that published articles and other content regarding purported examples of fraud, corruption, and bureaucratic inefficiency affecting the scientific and academic communities in China. In about 2005, Fang publicly criticized a urologist who claimed to have a developed a treatment for a rare disease. A year later, the urologist sued Fang, and a Chinese court ruled in the urologist's favor. In 2010, Fang was attacked by individuals purportedly hired by the urologist as revenge for his public criticism of the doctor. As a result of the attack, Fang established a business in China called “Personal Safety Foundation for Scientific Anti-Fraud Individuals” (Foundation). Fang used the Foundation’s website among other methods to obtain donations. Fang represented that donated funds “would be used solely for the protection of the personal safety of individuals engaged in anti-fraud activities,” and that any such awards could be used by recipients for the “purpose of protecting their personal safety.” As an inducement to obtain donations, Fang publicly represented that no monies collected to fund the Foundation would be used to pay for his personal living expenses. For approximately eight years, the Foundation collected donations from “several thousand donors” including plaintiffs. The complaint alleged defendants misused Foundation funds “for personal transactions” in contravention of the stated mission and purpose of the Foundation. Defendants in their motion argued the complaint should have been dismissed on the ground of inconvenient forum because the matter should be litigated in China, where all plaintiffs resided and where the Foundation was located. The Court of Appeal concluded substantial evidence supported the trial court’s finding that China was a suitable forum. However, the California Court agreed with plaintiffs that in the interest of justice, the case should have been stayed and not dismissed, with the U.S. court to retain jurisdiction over the matter pending the outcome of the case in China.