Mr. Guodong Du, the co-founder of China Justice Observer, lawyer of Dentons Beijing office, specializes in cross-border dispute resolution, in particular in the recognition and enforcement of foreign judgments in China.
Recently China has loosened the criteria for recognizing and enforcing foreign judgments . This means now you may bring a lawsuit in a jurisdiction, which you find most familiar and convenient, and then apply in Chinese courts to recognize and enforce your judgment, getting compensated by the judgment debtor’s assets in China. Our team, led by Mr. Du, is right here to offer you the legal services.
We know well how the judicial system works here in China. We excel at litigating in Chinese courts and safeguarding our clients’ lawful rights through Chinese judicial system. We can represent you in Chinese courts, to help you get your judgments recognized and enforced.
Services and Prices
The services and prices include:
- Attorney fees: Legal services are provided and charged by our attorneys, on a flat fee and/or contingency basis.
- Service fees: Where applicable, a range of third-party services are provided and charged by institutions and individuals, including Chinese experts, business research firms, translation companies, guarantee companies and insurance companies.
- Litigation costs: Court costs and other fees are payable for each court order applied for, and charged by Chinese courts.
1. Attorney fees: Legal services
1.1 Legal services for recognition proceedings
|Services/Price||Flat fees||Contingency fees||Total amount (A/B)|
|Recognition only||$ 30,000||$ 30,000|
|Enforcement only||(15%-30%)*X||(15%-30%)*X / 0|
|Recognition & Enforcement||$ 30,000||(15%-30%)*X||$ 30,000+(15%-30%)*X / $ 30,000|
X= Amount successfully enforced in the case
A/B = Amount if successful/ amount if not successful
Our attorney represents the client in court to apply for recognition of a judgment rendered by a foreign court.
Attorney fees (Flat fees)
The services are charged on a flat fee basis. For each court order applied for, the attorney fee is $ 30,000. The flat fee is fixed and due at the start of services.
1.2 Legal services for enforcement proceedings
Our attorney represents the client in court to apply for enforcement of a foreign judgment already recognized by a Chinese court.
Attorney fees (Contingency fees)
The services are charged on a contingency basis. This means our fee is contingent upon obtaining a successful result for the client. The fee is based on a percentage (15%-30%) of the amount that is successfully enforced in the case. The fee is due upon completion of enforcement.
If the client loses the case, there is no fee incurred.
1.3 Legal services for recognition and enforcement proceedings
A package of legal services for both recognition and enforcement proceedings is also available. Our attorney represents the client in court to apply for recognition and enforcement of a judgment rendered by a foreign court.
* According to Chinese law, recognition is a prerequisite for enforcement of a foreign judgment. The client may chose to apply for recognition only, or to apply for both recognition and enforcement.
Attorney fees (Package fees)
The services are charged package fees based on two proceedings, i.e., the sum of fees in recognition proceedings (see 1.1) and fees in enforcement proceedings (see 1.2).
Our fee schedule is based on the ethical rules for the practice of law in China.
Pursuant to the Measures for the Administration of Lawyers' Fees issued by China’s Ministry of Justice and the National Development and Reform Commission,
“the lawyers' fees may, depending on different service contents, be charged on the case-by-case basis (flat fees), at a certain proportion of the amount involved, or the time spent (hourly rates), etc.” (Art. 10.1)
“Where a contingency fee is applicable, the law firm and the client shall conclude a fee agreement detailing the risks and liabilities of both parties, and how the fee will be charged and computed (either based on a flat fee basis or a percentage). The maximum contingency fee shall not exceed 30% of the agreed amount involved.” (Art. 13)
2. Service fees: Third-party services
2.1 Experts’ opinions of Chinese experts
In the recognition proceedings, the applicant needs to establish the conditions required to recognize a foreign judgment, including that the judgment is given by a court considered to have jurisdiction, and that the judgment is final and conclusive. To prove such matters, the applicant might be required to provide laws of the relevant foreign country.
Considering the lack of experts in local courts in the proper ascertainment of foreign law, China’s Supreme People’s Court (SPC) has by now designated four (4) academic institutions as specialized centers in ascertaining foreign law, such as the China Institute for Discerning Foreign Law established in China University of Political Science and Law.
We can recommend Chinese experts from such institutions to our clients, and have them render independent experts’ opinions on the proof of foreign law
For each expert’s opinion rendered, Chinese experts charge from $ 5,000 to $ 10,000.
2.2 Services of business research firms
In China, there might be risks of concealing or transferring property by the debtor. To reduce such risks, it is advisable to conduct a due diligence investigation beforehand and to determine whether there are enforceable assets in China.
We can recommend business research firms to our clients, and have them conduct such investigation.
For each investigation conducted against one debtor, the research firms charge from $ 1,000 to $ 3,000.
2.3 Services of translation companies
According to Chinese law, where the written materials submitted are in a foreign language, the party concerned shall submit the Chinese translations thereof to the court at the same time.
We can recommend translation companies to our clients, and have them provide translation service.
The translation companies charge around $ 100 per thousand words.
2.4 Guarantee services for interim measures
According to Chinese law, where an applicant applies to the court for property preservation or other interim measures against the debtor’s assets, the applicant shall set his/her own property or a third party’s property as guarantee.
We can recommend Chinese guarantee companies or insurance companies to our clients, and have them provide the guarantee as a third party (guarantor).
For each guarantee service, guarantee companies or insurance companies charge around 0.5% of the amount of the preserved property.
3. Litigation costs
All litigation costs are calculated in Chinese yuan (RMB) and charged by Chinese courts.
3.1 Court costs in recognition and enforcement proceedings
Pursuant to the Measures on the Payment of Litigation Costs (Art. 14.1, Art. 20.2, and Art. 38.1), the fee schedule is as follows.
(1) If there is no enforceable amount or price, a fee from 50 Yuan up to 500 Yuan shall be paid for each case.
(2) If the enforceable amount or price is not more than 10,000 Yuan, a fee of 50 Yuan shall be paid for each case; for the part of more than 10,000 Yuan up to 500,000 Yuan, the fee shall be paid at the rate of 1.5%; for the part of more than 500,000 Yuan up to 5,000,000 Yuan, the fee shall be paid at the rate of 1%; for the part of more than 5,000,000 Yuan up to 10,000,000 Yuan, the fee shall be paid at the rate of 0.5%; for the part of more than 10,000,000 Yuan, the fee shall be paid at the rate of 0.1%.
(3) The fee shall be borne and paid by the debtor once the enforcement is completed. The applicant needs not prepay the fee.
3.2 Court costs in interim measures proceedings
Pursuant to the Measures on the Payment of Litigation Costs (Art. 14.2, Art. 20.2, and Art. 38.3), the fee schedule is as follows.
(1) If no preserved property amount is involved or the preserved property amount is not more than 1,000 Yuan, a fee of 30 Yuan shall be paid for each case; for the part of more than 1,000 Yuan up to 100,000 Yuan, the fee shall be paid at the rate of 1%; for the part of more than 100,000 Yuan, the fee shall be paid at the rate of 0.5%. Nevertheless, the maximum fee for interim measures shall not exceed 5,000 Yuan.
(2) The fee shall be prepaid and borne by the applicant.