HONG KONG: The Macao musical duo Soler has lost its appeal, against a lower court ruling, directing that twin brothers Dino and Giulio Acconci pay HK$5 million compensation to their former manager.

The lengthy breach-of-contract wrangle between the band and former manager Hummingbird Music Ltd began in 2006 when Soler rejected several engagements arranged by Hummingbird. In February 2007, Soler's lawyers served a formal notice declaring an end to the deteriorating cooperative relations.

Hummingbird's request for compensation was declined, prompting a breach-of-contract lawsuit at the Court of First Instance.

Soler filed a counter lawsuit, arguing the agreements with Hummingbird were unreasonable and therefore void. The two brothers also said they were bullied into signing contracts and that Hummingbird had failed in its responsibilities, such as keeping accounts in good order.

The Court of First Instance ruled in favor of Hummingbird in January this year. The HK$24 million loss of profits sought by the company, however, was reduced to HK$5,058,000. Soler appealed.

In the ruling handed down yesterday, the Court of Appeal judges dismissed Soler's arguments as "defective" and even "embarrassing".

Anthony Rogers, vice president of the appellate court, pointed out the agreements had been based on Sony record company contracts from Taiwan, indicating the terms are common and acceptable in the music business.

As for the claim that the agreements had been entered into under undue influence, Rogers noted that Soler's lawyer had shifted tactics and claimed that the management had abused the trust and confidence of Soler.

The fact that the lawyer had taken "such a thoroughly bad point" indicates the weakness of the claim, Rogers observed.

In the Court of First Instance trial, Soler's lawyer argued the undue influence claim through incidents such as one manager having told Giulio Acconci he looked "like a $2 whore" in a stage outfit. The manager had explained it was intended as a joke.

(HK Edition 01/06/2010 page1)