A complex series of disputes stemming from the “FJ 001” incident has been named one of the seven "Typical Cases of Judicial Service Safeguarding High-Quality Development of the Marine Economy" by China’s Supreme People's Court. 

Additionally, the case has been recognised as a "Deal of the Year" by leading legal publication China Business Law Journal.

The Incident and Resulting Claims

The "FJ 001" incident, which occurred during Typhoon "Chaba" in July 2022, saw the offshore wind power operation platform drag its anchor off the coast of Guangdong Province, China, successively striking multiple offshore wind farm facilities before eventually breaking apart and sinking. The incident triggered a cascade of disputes involving hull insurance, damage to wind farm facilities, and salvage costs, with total claims amounting to RMB 1.26 billion. 

Specifically, the owner of the offshore platform filed a claim with the Guangzhou Maritime Court against its hull insurer for indemnity. Separately, the owners and insurers of the affected offshore wind farm facilities brought seven claims seeking compensation for damage. Additionally, two service providers initiated proceedings for unpaid salvage and wreck removal costs. 
 

Litigation Outcome
 

Following first instance judgments by the Guangzhou Maritime Court on four of the cases, appeals were lodged with the Guangdong High People's Court. The appellate court adopted a holistic approach, ultimately facilitating a coordinated mediation of the entire disputes. The resolution established a framework based on "hull insurance compensation + multi-case linkage + proportional distribution from the limitation fund".

Notably, the proactive coordination of Huang & Huang’s Managing Partner Mr. Huang Hui and Partner Ms. Chen Xiaoling, acting for the insurers of one of the affected offshore wind farm facilities, was instrumental in driving the court’s development of the novel mediation framework, securing a substantial proportion of the limitation fund for their clients and achieving both rapid reimbursement and swift case resolution.

Innovative Strategies by the Huang & Huang team
 

Faced with significant complexities, including an official incident investigation report focused primarily on personal liability, potential delays due to parallel criminal investigations, and unquantified losses, the Huang & Huang team devised a series of innovative strategies. These included:

· Refining litigation structure: Excluding individuals subject to criminal proceedings and prioritising corporate entities as defendants to avoid procedural delays and expedite case registration.

· Flexible approach to loss quantification: Facilitating a joint claim by the insured and insurer as co-claimants, initially seeking recovery based on estimated losses, with final quantum subsequently determined through judicial appraisal, thereby avoiding duplicate litigation.

· In-depth legal analysis: Conducting comprehensive assessment of core issues, including whether typhoons in the South China Sea constitute force majeure and whether the responsible party was entitled to limit liability, thereby establishing a solid legal foundation for the client’s claims.

This successful outcome not only protected the client's interests but also provides valuable precedent for risk management and dispute resolution in the burgeoning offshore wind industry in the South China Sea.

Significance

The Supreme People’s Court highlighted this case as a leading example of effectively balancing the legitimate rights and interests of both the responsible party and the affected stakeholders. The resolution enabled wind power operators to rapidly recover capital, significantly strengthened investor confidence and reinforced insurers’ willingness to underwrite offshore wind projects, and delivered robust judicial support to enhance the effectiveness of maritime adjudication and safeguard the development of new-quality marine productive forces. 

The China Business Law Journal accolade further underscores the legal complexity and market impact of the case, acknowledging the firm's professional expertise and innovative approach to dispute resolution.

Related Links

Supreme People’s Court Holds Press Conference on “Typical Cases of Judicial Services Safeguarding High-Quality Development of the Marine Economy”
https://mp.weixin.qq.com/s/fb9UjWC8X888DYswaK6rwQ

China Business Law Journal Announces “Deals of the Year” Winners
https://law.asia/china/china-deals-of-the-year-2025/#Domestic_17