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Wed, Aug 09, 2000 - Page 3 News List

NPA loses final round in contract dispute

PAYBACK TIME The Supreme Court ordered the police administration to pay a contractor after a seven-year dispute over allegedly defective bullet-proof vests

By Irene Lin  /  STAFF REPORTER

A man entangled in a contract dispute with the National Police Administration (NPA) over a NT$224 million sale of bullet-proof vests since 1993, won another round in court yesterday in his continuing struggle to have the NPA pay up for the purchase.

Lin Shu-hsiung (林樹雄), owner of the Kuangyen Company Ltd, defeated two other bidders and won the NPA's order of over 16,244 bullet-proof vests in February 1993. Lin's company was to fill the order by July of that year.

Officials at the NPA carried out a test on the vests before the order's deadline and declared the jackets had failed the test. Lin said the jackets surpassed safety standards and requested the NPA to carry out another test.

The NPA, however decided not to carry out another test and to cancel the deal. Lin, after several failed complaints to the NPA, has since turned to the court for a resolution to the contract dispute.

In April last year, the Supreme Court handed down a final ruling ordering the NPA to pay Lin the money in dispute. The key reason for the NPA's defeat in the ruling was that it lost its prime evidence -- a piece of bullet-proof board -- used to test the jacket in the pre-delivery examination.

Despite the ruling, the NPA has refused to pay to this day, and has since requested that Lin deliver the jackets before payment is made.

The NPA also said it has discovered that Lin had sold the "defect" jackets under the guise of another company to the NPA, which had opened another bid for the purchase of bullet-proof vests.

Lin, who said the NPA has only intended to avoid paying him, obtained a court order to freeze NT$224 million from the NPA's account. The move was countered, however, by an NPA request to the court for restoration of its account.

During the trial, the NPA argued it wants to cancel the contract with Lin due to the fact the delivery has yet to be fulfilled. The NPA also said the Supreme Court ruling that ordered the payment is not binding with the absence of a legal relationship between the two parties.

Nevertheless, the Taiwan High Court judged yesterday that the Supreme Court ruling is binding and that the contract is still valid and the NPA should pay Lin in full.

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