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China bars O.C. Diabetic Businessman From Returning Home Over Business Deal/Legal Case-Runs Out of Insulin End Up in Hospital

Posted Jan 10 2011 4:22pm

This is an interesting case on US laws and those in China.  It has been business as usual for this man from Orange County, CA and due to no fault of his own, the manufacturer didn’t create products up to spec in California.  This is just some food image for thought on the import side of things as according to this article the company came back, filed suit in China and until the damages are paid, he’s kind of stuck there.

He ran out of insulin and had to be hospitalized to stabilize his diabetes too, so not fun when you are out of town and more so, out of the country.  The Chinese law does enable detainment until civil suits are settled.  BD 

A businessman from Orange County said Chinese government officials have prohibited him from leaving China for the last four days, saying he must resolve a contract dispute with a Chinese supplier before they’ll let him return to the United States.

The supplier, Fuzhou Trading Co., is seeking payment for a shipment of blenders that Horowitz’s company, On the Edge Marketing Inc., sold briefly in the United States, Horowitz said. The Chinese company’s owner demanded $250,000 to settle the contract dispute before he’d direct the judge to let him leave, Horowitz said. Officials with Fuzhou Trading could not be reached for comment.

Horowitz said he is scheduled to meet with a Shanghai law firm Monday to make arrangements to pay the money and resolve the matter. The U.S. Consulate in Shanghai and Rep. Gary Miller (R-Diamond Bar) have been assisting, Horowitz said.
Meanwhile, Horowitz, a 46-year-old with diabetes, said he ran out of insulin and spent part of the day Sunday in a Shanghai hospital, where doctors managed to stabilize him.

Horowitz’s dispute centers on his 2007 purchase of 3,000 gasoline-powered blenders, which are popular among tailgaters and campers. Horowitz said the Chinese supplier “cut corners” and did not manufacture the blenders to U.S. air quality standards, as the contract specified.

The California Air Resources Board fined Horowitz’s company $240,000 in 2009 and ordered him to pull the blenders from stores.
Horowitz said the Chinese company agreed to write off Horowitz’s balance of more than $300,000 because of the fine and recall. And that was the last he heard about the issue until this week. He said that he was never served with a copy of the lawsuit and that he had traveled to China about 30 times in the last two years without incident.

“He called me in the middle of the night and said we need $250,000. You know how scary this is?” Tammy Horowitz said. “We had to call everybody we know to get the cash. Now, how do we know [the Chinese supplier is] going to show up in court and say we paid it?”

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