Insider’s look at legal services in China: Dispute Resolution: Fee Structure (Negotiations, Demand Letters & Litigation) (Part 16)
Fee Structure
The following fees are listed in “RMB” which is the Chinese currency also known as “CNY” or “Chinese Yuan”. Payment may be made in any major currency at the day’s given exchange rate. Visit www.XE.com to check the exchange rate of your currency against the CNY.
| Lawyer Fee on Typical Project | Service | Description | Time Frame |
| 2,450 RMB | Initial Due Diligence (if needed) | Used to confirm if the individual or company in question is real or not | Approx. 1 week |
| 12,250 RMB | Dispute Resolution | Inclusive of detailed case review, demand letter, follow up call (if needed) and client updates. | Approx. 2 weeks |
| Free of Charge | Pre-Litigation Initial Case Review | Review of the case files and provision of service proposal | 1 day to 1 week depending on project scope |
| 4,250 RMB to 7,500 RMB
Fee depends on the number of defendants, location and size |
Pre-Litigation Financial Due Diligence (if needed) | Used to confirm if the individual or company in question has assets and is a position to pay for damages if the case is won. | Approx. 3 weeks |
| Project dependent. But most lawyers don’t get involved for less than 12,250 RMB | Litigation | ||
Lawyer compensation for litigation is invoiced as a small monthly retainer coupled with a pre-agreed % of recovered funds. The % of recovered funds is a performance based incentive which allows the client to rest assured that the lawyer desires to seek maximum compensation for the client from the defendant in as short a time period as possible.
Project expenses (court fees, express mail, technical translation, transportation…) are invoiced at cost and a budget will be submitted to client for approval in advance. Receipts will be provided. No hidden charges.
Next in the series
Having a lawyer on retainer: Costs and Coverage (Part 17 of 17)
About the author: Mike Bellamy
Advisory Board Member & Featured Blogger at the not-for-profit China Sourcing Information Center (www.ChinaSourcingInfo.org). Author of “The Essential Reference Guide to China Sourcing” and founder of PassageMaker Sourcing Solutions.