Hong Kong court dismisses HK$12 million claim against Cecilia Cheung by former agent

A Hong Kong court has dismissed a HK$12 million (US$1.53 million) claim against actress Cecilia Cheung Pak-chi by her former agent, finding that she had never signed an agency contract she allegedly breached nor received advance payment for her services.

Cheung, 46, was involved in a legal battle with Asia Entertainment Group (AEG) president Samuel Yu Yuk-hing for allegedly reneging on her promise to appear in several films produced by the now-liquidated company between 2011 and 2019, pursuant to several written agreements.

In a judgment on Tuesday, the High Court found that a 2011 exclusive management contract Yu had sought to rely on was highly likely to have been “created” by his younger brother to avoid tax liabilities, after the Inland Revenue Department began investigating a HK$40 million payment AEG made to Cheung in July 2011.

The court also ruled that Yu failed to prove that he had indeed paid Cheung HK$2.76 million as an advance payment for her performance in two films by the company between 2011 and 2014.

Mr Justice Herbert Au-yeung Ho-wing found Yu to be an “incredible” witness, noting that he was evasive and gave internally inconsistent answers on multiple subjects.

Yu also displayed low business morality as evidenced by his willingness to forge documents to deceive tax authorities, the judgment said.