Property Title dispute in China: should I take the action to quiet title?

As a relatively young country with the concept of rule of law, China has a long way to go before building itself into a ripe rule of law state. In the fundamental field of property laws, there are too many controversies over many legal issues that may well vex a smart mind.

A young colleague in our firm discussed his case with me. It is an interesting situation: a piece…

Litigation strategy in Chinese courts: annul or rescind the contract?

The strategy I talk about here may apply in other cases at Chinese courts. While it may sound weird to foreign minds, it is very true in China.

Our real estate team at Dacheng Law Offices (Shanghai) has dealt  with a quite controversial case recently. Here are the facts:

The client bought a factory building in an Industrial Park in Fengxian District, Shanghai.…

Lock your tenants out? Right of defense for delaying performance of contractual obligation

As the external legal counsel for The Executive Center in Shanghai, the leading premium serviced office provider in Asia, a slew of legal questions have been put forward before me. Some of the issues are interesting and worth a post here.

As a serviced office provider, or landlord, the number one headache is delay or refusal by tenants in paying the rent for the…

Choose foreign arbitration for dispute resolution? Shagang and HNA drama

The whole thing, the legal battle between Shagang and HaiNan Aviation Group (HNA), has turned into a public event after more than 2000 passengers were affected in respect of their otherwise pleasant voyage.

The eruption of the row between the two companies that are mainly operating within China has raised a good question: why the hell do they choose to resolve…

the trouble of evidence discovery in Chinese litigation proceeding for foreign parties

To institute a lawsuit in China is set to be a big headache or even a nightmare for foreigners or foreign companies. There are many reasons for causing the headache: total ignorance of Chinese substantive and procedural laws, lack of trust in their lawyers hired, lack of confidence in Chinese juridical system and so on, among which the trouble in the cumbersome…

foreign court judgment enforcement in China

China has never been integrated with the world so extensively and so deeply as it is today. For the last three decades, China has been welcoming and hosting foreign investors and business people at home, and now more and more Chinese investors and business people are making their roads into foreign countries over the globe.

Either way, there is an important legal…

How much I should pay for a lawyer in Shanghai China

This is an inevitable question between any client-attorney relationship. Sometimes, it is the key factor dictating whether a client will go with a certain lawyer.

While different lawyers or attorney-at-law may quote different fees to a potential clients, there are some benchmarks for the parties to consider and follow. In fact, Shanghai local government…

Subrogation right in China Contract Law, a case study

I am advising a client on his real estate dispute with his seller which is very interesting as it led me to think about two important issues under china contract law.

Here are the facts: my client entered into a real estate sale and purchase contract back in 2009 under which he agreed to pay for an apartment which at the time of signing the contract was not allowed to…

An irrevocable power of attorney? What does it mean under Chinese laws?

A power of attorney, POA, is used widely in any jurisdiction in many circumstances where one individual entrust another individual to speak and act in his name or on his behalf and protect their best interests.

As I represent foreign clients in most cases, clients often raise the issue of revocability of power of attorney they are going to grant to me. Recently,…

conservatory measures in Chinese legal proceedings, litigation or arbitration

It is proved to be tough to do business with Chinese astute businessmen and Chinese companies. I guess very often foreign businessmen and foreign companies may be thinking about suing their Chinese distributors, supplier or business partners in China (it is a bad strategy to sue a Chinese company in foreign country because in most cases these foreign judgments…

If a foreigner gets killed or injured in the high-speed train collision in Wenzhou, China

China’s deadly Wenzhou train crash has passed for more than a year, leaving still a few dozens of people in agony awaiting for compensation from Chinese Ministry of Railway. For most of those whose lives are claimed in the incident, their relatives should have accepted the compensation of RMB 915,000. But not all of them.

I am retained recently by the…

China court litigation? May not be bad for you

For foreign traders or businessmen dealing with Chinese counterparts, is it a good idea to stipulate that disputes will be submitted to Chinese competent courts for settlement through litigation?

Many will shake heads firmly, as they have come to know how corrupt the Chinese court systems are, and how difficult or biased a Chinse litigation proceeding will…

A good point for drafting commercial contracts governed by Chinese laws

I am reviewing a real estate sale and purchase contract under which my client bought a villa house in Pudong Shanghai, China.  My client has paid a down payment up to almost RMB 5 million. Now because of real estate policies imposed by central government, the deal is doomed to fail. Thus, client wanted his money back but the developer, as others in the industry…

Single member company and the lifting of corporate veil in China corporate law practice

Most foreign investors have come to choose to go alone when investing in China. As a result, more and more WFOE companies (limited liability companies) have appeared in market. Among those WFOEs, there is a considerable portion being single or one member companies that, namely, have only one shareholder, either a natural person or a legal person.

Recently,…

you need to define the word “deposit” in your business contracts with Chinese merchants

A client from the Middle East approached me recently seeking legal advice regarding a dispute with a Chinese supplier.

The client entered into an English-written contract with the Chinese supplier under which the supplier would supply the contractual goods at agreed price to the client. The contract stipulated that client shall make a “deposit”…

Sorry, Sir, you are banned from leaving China

That will be the least thing you want to hear when you are about to exit China at airports. But it may likely happen when you or the company you serve is involved in a lawsuit in China in which you may be subject to certain obligations.

Recently, one of my corporate clients consulted me regarding whether its legal representative (an American) would be restricted …