dispute resolution

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By King & Wood’s Trademark Practice

Foreign companies often have concerns regarding whether the litigation process in an overseas venue will be efficiently handled by the relevant courts. In China, given the large increase in IP-related lawsuits in recent years, this is a reasonable concern. In 2009, P.R.C. courts had concluded 6,262 cases with a yearly increase of 31.89%. 1With such an upsurge in litigation, the P.R.C. courts have faced a very significant challenge.Continue Reading P.R.C. Courts Show Improved Efficiency in Handling Foreign-related IP Lawsuits

By Meg Utterback and Ding Liang of King & Wood’s Cross border dispute resolution Practice

As the United States mid-term elections draw near, we can expect greater protectionist measures from the US government in an effort to appease voters who are demanding an improvement in the US unemployment statistics. One such protectionist measure is the initiation of the recent 301 investigation relating to allegations that the Chinese clean technology and renewable energy sectors are being unfairly advantaged by government subsidies.   Almost all countries are subsidizing the renewable sector in one form or another in hopes of easing the world’s dependence on fossil fuels. It seems however that the US has taken umbrage with the extent of Chinese programs supporting the clean technology and renewable energy industries.Continue Reading China Clean Tech at Risk– Initiation of the Recent Section 301 Investigation

 By Meg Utterback, Ariel Ye and James Rowland of King & Wood’s Cross Border Dispute Resolution Practice

The majority of cases, whether in court or arbitration, are settled. Parties weigh a variety of factors from the start of the dispute to award, constantly performing a cost benefit analysis. Generally speaking, issues such as principle and precedent often preclude a settlement. Parties will refuse to consider a good settlement if it violates an internal principle, e.g. no payment, even nominal, in the absence of liability;Continue Reading Arbitration Negotiation Tips

By Guan Feng and Wu Sijie, King & Wood’s Litigation & Arbitration Group

In 2008, a financial derivatives dispute arose between a foreign-funded bank (the "Bank") and a local Chinese company (the "Company"). Although both parties executed certain documents to conclude the transaction, due to adverse changes in the international financial environment, the Company denied that the parties had entered into any contract regarding the derivative transaction and refused to perform. As a result, the Bank initiated a lawsuit against the Company to seek damages.
 Continue Reading Culpa in Contrahendo: PRC Judgment in Dispute over Financial Derivatives Services

Apart from judgments dealing with divorce and custodial issues, only a small number of published cases have been identified involving attempts to enforce monetary judgments entered in China in U.S. courts. A recent decision from the Central District of California is a landmark in the recognition of Chinese decisions.

By Ge Yan, Partner, Cross Border Dispute Resolution

Continue Reading Landmark International Products Liability Case Decided in China and Reinforced by US Federal District Court

A Chinese company’s top executive is usually the company’s legal representative, and he or she is legally entrusted with the company seal, which is the company’s official symbol. The company seal provides the legal capacity to make and execute agreements, provide guarantees, transfer assets, and legally bind the company. When a legal representative is replaced, the displaced legal representative must return the company seal to the company so that the new legal representative can represent the company. However, if the displaced legal representative refuses to return the seal, the company could be liable for all the agreements that the former legal representative binds the company to. In other words, even if the articles of association can be used to remove an executive it does not necessarily mean that the foreign investors have been able to regain control of the company in practice. Therefore, retrieving the terminated legal representative’s unlawfully held company seal is an important step toward the foreign investors recapturing control of the company.

By Zhang Shouzhi, Xu Xiaodan and Li Xiang, King & Wood’s Cross-Border Dispute Resolution Practice, BeijingContinue Reading Battle for the Company Seal

Often, when Chinese lawyers deal with foreign-related cases they see the term "attorney-client privilege" in the foreign lawyer issued legal opinions and memorandums. Furthermore, many foreign lawyers would like to know if their communication with the Chinese lawyers they work with is provided the same amount of protection as their communication with their clients.

Black’s Law Dictionary defines attorney-client privilege as a client’s right to refuse to disclose, and to prevent anyone else from disclosing, confidential communications between him or her and his or her attorney. This privilege prevents attorneys from disclosing their communications with their clients. Furthermore, this protection prevents any other party, including, the attorney from using any information that could be considered "attorney-client privilege" as evidence in a litigation. However, there are exceptions. For example, an attorney has a duty to disclose privileged information if the disclosure is related to criminal activities. The attorney-client privilege was established to encourage honest communication between an attorney and his or her clients. This opportunity for honest communication will reduce the chance that a client will intentionally or unintentionally engage in an illegal activity due to ineffective communication with his or her attorney.

Gui Hongxia and  Li Xiang of King & Wood’s Dispute Resolution Group

Continue Reading Attorney-client Privilege: Extended to Foreign Lawyers in China?

作者：刘军 金杜律师事务所 广州分所 国内诉讼部

2008年3月30日，最高法院公布调整各高级法院和中级法院管辖第一审民商事案件标准，主要从案件标的额方面大幅提高了高级法院和中级法院受理一审民商事案件的门槛，新标准自2008年4月1日起施行。

此次调整将大大减少各高级法院受理一审案件以及最高法院受理二审案件的数量，但同时会导致基层法院受理一审案件数量的激增，相应地中级法院二审案件的办案压力也会一定程度的增大。可以说，新标准的实施后，绝大部分民商事案件的一审、二审工作将由基层法院和中级法院承担。Continue Reading 关于最高法院调整一审民商事案件级别管辖标准的一点看法

By: Huang Tao, Partner and Dai Yue , an associate of King & Wood’sDispute Resolution Group in Beijing.

Lacking knowledge of and exposure to China’s judicial and arbitrational system, foreign companies usually worry about dispute resolution clauses more than any other clause in a contract. Deciding which arbitration tribunal and what arbitration rules to specify becomes a sensitive and important aspect of contract negotiations for wholly foreign owned entities ("WOFE") and cooperative joint ventures ("CJV").Continue Reading Forum Shopping in China: Choice of Arbitration Tribunal