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 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 ( Author of “The Essential Reference Guide to China Sourcing” and founder of PassageMaker Sourcing Solutions.

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