Judge rejects motion to remove Chinese billionaire's corporation as defendant in sexual assault lawsuit
It is difficult to determine when a CEO is "off duty," a Hennepin County judge said in a ruling.
By Randy Furst Star Tribune April 28, 2020 — 5:06pm
Billionaire Richard Liu, CEO of JD.com, is accused of raping a University of Minnesota student in 2018. The company’s lawyers don’t want JD.com to be a target of the lawsuit.
A judge rejected a request by Chinese billionaire Richard Liu to remove his corporation as a defendant in a lawsuit filed by a University of Minnesota student who claims she was raped in 2018.
Hennepin County District Judge Edward Wahl declined the motion to dismiss JD.com from the litigation, in which Liu is also individually named as a defendant. The company, similar to Amazon, is one of China’s two giant online retailers.
Liu’s attorneys argued that JD.com should not be implicated in the woman’s accusations because the sexual contact occurred off company premises and on Liu’s own time. Liu has maintained that sex with the woman was consensual, and he was never charged in connection with the allegation.
In his ruling issued Monday, Wahl declared that “it is difficult to determine when defendant Liu is ‘on duty’ and ‘off duty,’” as a CEO, observing “the determination is significantly more difficult for someone identified as a CEO and owner of an international corporation” compared to an average worker.
Peter Walsh, an attorney for JD.com, said the ruling was “not unexpected,” and that they expect to prevail once more evidence is admitted.
“Courts often conclude, as the court did here, that they cannot dismiss claims without the benefit of additional facts,” Walsh said. “The judge specifically stated that he was not making any factual findings and that it was simply ‘premature’ to rule in JD.com’s favor.”
The woman, Jingyao Liu, a Chinese undergraduate at the U who is no relation to Liu, has alleged Richard Liu got her drunk at a business networking party he hosted in August 2018, then sexually assaulted her in her apartment.
Liu was arrested by Minneapolis police, then released. After an investigation, Hennepin County Attorney Michael Freeman declined to file criminal charges because he did not believe he could convince a jury of Richard Liu’s guilt beyond a reasonable doubt.
Wahl concluded that JD.com’s attorneys did not provide sufficient information to conclude the company should not be held liable, and more evidence was needed to reach a determination.
Richard Liu’s Chinese name is Liu Qiangdong. He is the 40th richest man in China and has a net worth of $9.6 billion, according to Forbes Magazine.
He was attending a special business doctorate program at the Carlson School of Management at the U for some of the wealthiest executives in China when the incident occurred.
Jingyao Liu, who was 21 years old at the time of the alleged assault, was asked by a Carlson School dean to volunteer during a week in which the Chinese executives were attending the school.
Wahl was not asked by Liu’s legal team to dismiss the case altogether, a motion expected to come later.
The company had argued it could not be held liable for the acts of an employee and the alleged assault did not occur when Liu was on the job. Jingyao Liu’s attorneys say the company bears responsibility because it was part of an uninterrupted chain of events that began with a corporate-sponsored party and continued with a drive to her apartment in a corporate paid-for van.
Wahl noted the woman’s claims that Richard Liu told her that she could “be a woman just like Wendi Deng.” Deng is corporate magnate Rupert Murdoch’s ex-wife and was employed by Murdoch’s firms. “The mention of such name arguably implies business opportunities,” Wahl wrote.
Joseph Daly, professor emeritus at Mitchell Hamline School of Law, described Wahl’s decision as “quite significant” and a likely turning point in the lawsuit which was filed last year. Daly, who is not involved in the litigation, predicted it would spur JD.com and Richard Liu to settle rather than subject themselves to drawn-out depositions and more publicity.
However, Jingyao Liu’s attorney, Wil Florin, said his client does not want to settle. “Our client is intent on going to trial,” he said. “It’s hardened her resolve to get this case decided by a jury.”
https://www.startribune.com/judge-rejects-move-to-to-remove-chinese-billionaire-s-corporation-as-defendant-in-sexual-assault-lawsuit/570020482/