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LAWSUIT IN CHINA
Do we have to go China for our lawsuit?
No, foreigners or foreign companies can entrust a china lawyer to represent them to sue someone in China. Plaintiff will be required legalized their Passport/Company License and the Power of Attorney in their country’s China embassy.
Legalization always need some time, you can firstly consult your local public notary or China embassy for details.
Can i freeze defendant bank account pre-lawsuit?
Yes, this is called lawsuit preservation, If the defendant's property is successfully frozen, this ensures that the defendant cannot transfer the property, and if you get a wining judgment, the preservation can help court can directly send those money to your account.
Please note, preservation can only freeze the account which you provide to court, in the stage of preservation, court do not help you search property.
Preservation fee will be charged by court.
If I win the case, how the court help me get my money or compensation back if I did not do preservation or did not freeze enough money?
Actually, many cases without preservation can also get good enforcement, if you get a valid wining judgment, if the defendant still refuse to pay, after 15 days, your lawyer can apply the court do enforcement stage, the court will use court property search system to search defendant all properties, then the court can directly send defendant’s money or auction property to you for your wining judgment.
In some cases, the defendant’s account have no money, and defendant have no house or department property, the court can not search any property of defendant in system, sometimes happens, then the court will put the defendant (if company, then the legal representative person) in black list, people in black list are restricted in many things in China, their daily life, children education will be effected very much.
How much and what kind of fee i need to pay during the lawsuit?
Instead of lawyer service fee.
The court will charge court fee, depend on the amount involved, For example, if the requirement is ask defendant pay 50,000 USD, then the court fee is around 1000 USD. if the requirement is ask defendant pay 20,000 USD, then the court fee is around 500 USD. ( the fee is refundable if you win )
If you choose do preservation, the court will charge preservation fee, also depend on the amount involved. For example, if the requirement is ask defendant pay 50,000 USD, then the court fee is around 320 USD. if the requirement is ask defendant pay 20,000 USD, then the court fee is around 200 USD. Also, the court require provide preservation insurance, which cost around 200 USD.
Also, the court require the English evidence should translate to Chinese by China translation company, court translation is extremely expensive, so it is suggested do it by outside company, generally it need 50-300 USD.
When you do legalization in your country, the notary office and embassy will charge you, different country have different charge standard.
Can I ask defendant pay my legal cost include lawyer fee?
If you win the case, the court fee will return to you.
Only certain Courts in china will return preservation fee to you.
Only certain Courts (Include Shenzhen Qianhai court) give a chance to support lawyer fee to compensate wining party.
Generally, the requirement of lawyer fee are hardly supported by court, unless below situation: if you have a contract with defendant and it stipulated that if any dispute in court, the lawyer fee should be bound by losing party, then the court will support your claim of lawyer fee, also, if you submit a case in arbitration court when you have a contract stipulate that any dispute should be submitted in arbitration court, then you also have chance get the lawyer fee compensation.
How long the case take?
Generally, all procedure need 3-6 months, the court sometimes deal cases slowly. Also, court will arrange mediation for both parties, if parties can get agreement in mediation, court will issue a valid mediation judgment. Which save a lot of time, need around 1 month.
Is there any else method to deal with dispute without court?
People can choose sending lawyer letter to defendant, lawyer letter have lower charge, which can give defendant pressure, tell them the law and urge them to fulfill the obligation. But only court judgment is enforceable, some people just ignore the letter. Whether sending lawyer letter should according to the actual situation.
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