A recently shuttered Hong Kong production company, Trial and Error, has filed two civil lawsuits in the District Court seeking over HK$1.3 million (approximately $166,400 USD) in cumulative unpaid service fees and interest from two public relations agencies. The lawsuits, filed on June 21st and 24th, allege that the PR companies defaulted on payments related to promotional campaigns featuring popular artist Kayan9896 (Ng Ka-yan) for international fashion brands, despite the company fulfilling its contractual obligations.
Trial and Error Company Limited, the plaintiff in both cases, is pursuing the outstanding balances, accrued interest, litigation costs, and damages from Smart Concept Communications Co., Ltd. and Boost PR Co. Ltd. Court records confirm that as of yet, no hearing dates have been scheduled for either legal action.
Detailed Claims Against Public Relations Agencies
The first lawsuit, filed against Smart Concept Communications, stems from a promotional agreement dated October 5, 2023, concerning a campaign for fashion brand Tommy Hilfiger. According to court documents, Trial and Error, utilizing its then-contracted artist Kayan9896, was required to provide five hours of shooting time, a collaboration with another artist, a media interview, and an Instagram post, all for a fee of HK$350,000.
The contract stipulated that Smart Concept was to pay a 30% deposit upon confirmation and the remaining balance by December 8, 2023. While the PR firm remitted the HK$105,000 deposit on December 6, 2023, Trial and Error alleges the remaining HK$245,000, plus interest, was never paid despite repeated demands. The production company had issued an invoice on October 28, 2023, detailing a monthly interest rate of 10% on overdue amounts. Trial and Error sent a final demand letter on May 20, 2024, which the PR firm allegedly ignored. Trial and Error is now seeking over HK$808,500 from Smart Concept, primarily reflecting the unpaid principal and substantial accumulated interest.
The second claim targets Boost PR Co. Ltd. and relates to a different promotional campaign for the fashion house Ferragamo, formalized on November 9, 2022. Under this agreement, Boost PR engaged Trial and Error for Kayan9896’s services for a campaign titled “Ferragamo 22 x kayan9896.” The agreed service fee was HK$110,000, payable by December 9, 2022, also subject to a 10% monthly interest rate on late payments.
Trial and Error claims Kayan9896 completed the required work for the campaign. However, the HK$110,000 fee was allegedly never paid by Boost PR, despite multiple requests over the ensuing years. A final warning letter was reportedly sent to Boost PR on September 22 of the current year. The production company is pursuing over HK$495,000 from Boost PR, encompassing the outstanding service fee and interest accumulated over nearly two years.
Contractual Disputes Highlight Industry Risks
The timing of these lawsuits is notable, following the recent announcement that Trial and Error would cease operations. This legal action underscores the inherent financial risks within the creative and public relations sectors, particularly concerning non-payment and the potential for substantial interest to accrue on overdue invoices.
Kayan9896, the artist at the center of the dispute, concluded her three-year contractual relationship with Trial and Error in October 2024 and subsequently established her own independent studio to continue her entertainment career.
These cases will test the enforcement of strict payment terms, including high interest clauses, within promotional agreements. The outcome is anticipated to set a precedent regarding the financial liabilities of PR firms when artist services are successfully rendered but payment obligations are neglected. Legal experts note that such complex disputes often lead to protracted judicial proceedings if settlements are not reached before trial.