To assist parties in properly exercising litigation rights, protecting lawful interests, and avoiding unnecessary risks, this notice outlines common litigation risks in civil proceedings under the Civil Code of the People's Republic of China, the Civil Procedure Law of the People's Republic of China, and the Supreme People's Court Provisions on Evidence in Civil Cases:
I. Failure to Meet Filing Conditions
If a lawsuit does not satisfy statutory requirements, the People's Court will reject the case or dismiss it after acceptance. Cases accepted but lacking jurisdiction will be transferred to the competent court. To save costs and resources, ensure filing with the competent court.
II. Improper Claims
People's Courts adhere to the “non-intervention principle”. Claims shall be specific, concrete, and complete. Unspecific claims or claims that have not been filed will not be heard. Claims shall be suitable, groundless claims will be rejected. The amount of monetray claims shall be in line with reasonable expectations. If part of a monetary claim is denied, the applicant bears the costs for the rejected portion.
III. Exceeding the Statute of Limitations
The general statute of limitations for civil rights protection is three years (one year for special cases). Claims may be dismissed if the respondent raises a statute of limitations defense and the applicant cannot prove interruption or suspension of the limitation period.
IV. Ambiguous Agent Authorization
A litigation agent's authority is either general or special. Unless explicitly stated, authority to admit, waive, or modify claims, negotiate settlements, or appeal will not be deemed. Acts beyond authority are legally invalid.
V. Failure to Pay Litigation Costs
Applicants must prepay Litigation Costs as notified whether for initial claims or appeals. Late payment results in withdrawal of the case for initial claims or appeals. When an application for deferral, reduction, or exemption of litigation costs is denied by the People's Court, a timely payment is required; otherwise, the case is withdrawn.
VI. Erroneous Property Preservation Applications
Property preservation must be lawful and proportionate to ensure the enforcement of the judgement. Excessive seizure, detention, or freezing of assets, or malicious obstruction of the respondent's operations, renders the applicant liable for compensation for respondent's losses caused by property preservation.
VII. Failure to Submit Evidence
People's Courts hear cases on the basis of facts. Parties must provide evidence supporting their claims or defenses unless exempted by law. Failure to submit evidence within the prescribed period may result in adverse judgments.
VIII. Witnesses Failing to Appear for Cross-examination
If the party submits a witness statement, the witness must appear in court for cross-examination. Absence will affect the evidentiary validity of that witness's testimony, even lead to rejection of their testimony.
IX. Rejection of Audit/Assessment/ Evaluation Requests
Applicants must prepay fees for audits, assessments, or expert evaluations by court deadlines. Failure to pay fees by the due date may result in rejection of the request and bring a negative impact on the applicant. Also, parties should take care to preserve the payment vouchers, transaction vouchers and samples, etc., in the course of the transaction. Failure to preserve may make the audit, assessment or evaluation impossible to proceed.
X. Absence or Unauthorized Exit from Court
Plaintiffs failing to appear after summons or leaving court without permission face dismissal of the case (applies to counterclaim plaintiffs). Defendants' absence permits default judgments.
XI. Lack of Understanding of the Role of Service Address
Parties should pay sufficient attention to the service address they provide. The People's Court serves the process according to that address. Documents returned due to incorrect addresses or unreported changes are deemed validly served. Contractually agreed service addresses hold equal legal effect.
XII. Overdue Enforcement Applications
Enforcement must be applied within two years from the date a judgment becomes legally effective. Where an application is made after the prescribed time limit and the person subjected to execution raises an objection，the People's Court shall dismiss the application. Delays may also reduce the likelihood of recovering assets which may significantly reduce the likelihood of implementation being in place and jeopardize the applicant's property interests.
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