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Shaoyu case | When the statute of limitations expires, how can Mr. Shao Yu successfully help the client win the lawsuit and realize the creditor's rights

2024-01-18

Shaoyu case | In the event of the expiration of the statute of limitations,How Mr. Shao Yu successfully helped his client win the case and realize the creditor's rights

Zhang Limin, Liu Zhentao Shanghai Shaoyu Law Firm 2024-01-17 16:46 Published in Shanghai

In the event of the expiration of the statute of limitations,

How Mr. Shao Yu successfully helped his client win the case and realize the creditor's rights

11


Basic facts of the case



 In November 2022, due to the long-term arrears in the payment of equipment quality deposit by Company B, Company A entrusted Shaoyu Law Firm to file a civil lawsuit with the court.

After receiving the entrustment, Shaoyu Law Firm immediately sent a lawyer's letter to the debtor by e-mail and written mail, requesting it to pay the arrears.

Upon further understanding of the case, we were informed that:The warranty has expired in 2019 (but the specific date is unknown due to the lack of delivery notes and acceptance notes), and Company B should pay the quality deposit immediately after the expiration of the warranty money. However, after that, Company A collected the money by telephone or on-site visits, and did not collect the money by email, text message, WeChat, mailing reminder letters, etc., without leaving any documentary evidence, and in the past few years, the employee of Company B who was responsible for the payment docking of the contract involved in the case also passed away for some reason, and no one in Company B could prove that Company A had carried out the collection during the statute of limitations.Company B's payment time for the pre-payment and acceptance payment was later than the time agreed in the contract.



22


 The focus of the case



    The legal relationship in this case is relatively simple, the two parties are ina sales contract relationship, and now that the quality assurance periodhas expired, Company A has a claim against Company B because CompanyB owes the quality deposit and has not paid it. However, due to the lack ofevidence of written reminders, the statute of limitations has become a 

difficult problem for lawyers.

Therefore, when preliminarily drafting the litigation materials, the lawyer 

determines the focus of the dispute in the case:

Has the claim exceeded the statute of limitations, and is there evidence of an interruption of the statute of limitations?



33


Litigation Scenarios



Witnesses

01

    In the absence of documentary evidence, we recommend that the

company's employees who handle this dunning matter participate in the 

litigation as witnesses and provide witness statements to prove that the 

collection was carried out through on-site visits and phone calls in early 

2021 and 2022.

Although witness testimony alone cannot be used as evidence in a verdict, 

we cite Civil Procedure Law of The People's Republic 0f China Article 108 

of the Interpretation of the Supreme People's Court on Application:"Where, upon review and consideration of the relevant facts, the people's 

court is convinced that the existence of the facts to be proved is highly 

probable, the people's court shall find that the facts exist. ”

    In addition to the witness testimony itself, we also submitted two sets of supporting evidence to demonstrate a high probability of an on-site/telephone dunning:

1. Company A learned at the beginning of 2021 that the person in charge 

of the other party's payment passed away due to an accident. If Company 

A has not mentioned the collection of warranty money to the other party, 

Company A will not learn from the other party that the person in charge 

of the docking has passed away and that there is no one to collect the 

payment.

2. In 2021, in order to send a collection email, an employee of Company A asked the other employee for his work email address through WeChat. At that time, the payment period of the warranty money had expired, and there was only one transaction between Company A and Company B, and the only matter that the two parties needed to communicate through business email was to collect the warranty money. Therefore, it can also be proved that Company A claimed rights against the other party in 2021 for the payment of the warranty money, and the statute of limitations was interrupted.

The specific time point when the warranty period expires

02

 According to the contract involved in the case, the starting time of the 

warranty period is the time when the product is accepted, but because 

the time in this case is relatively long, Company A does not know the 

specific time when the product is qualified, and the product acceptance 

form is kept as Party A's Company B.

In the first instance, in order to refuse payment, Company B categorically 

denied receipt of all the goods, not to mention providing the receipt andproduct acceptance form to the court, in addition to the regular claim that 

the statute of limitations had expired.

In the absence of a clear time point for the expiration of the warranty 

period, and the time point of Company B's pre-payment is later than the 

time point agreed in the contract, can we use this point to infer the time 

of expiration of the warranty period?

 Therefore, we proposed, since there is no clear time point for acceptance, can we use the time when Company B pays the acceptance payment to 

infer the time to prove that the product is qualified (the contract stipulates 

that the time for payment of the acceptance payment is 30 days after the 

product is accepted) to derive the time when the warranty period expires?

If the time of expiration of the warranty period is calculated according to the above method, the time when the lawyer sends the lawyer's letter to the other party after receiving the entrustment is exactly within the limitation period, and the litigation claim in this case does not exceed the litigation claim.

4


Result of the first instance: Won the case



      In the first instance, because neither party adduced evidence to prove the specific time of product acceptance, the expiration time of the quality assurance period could not be determined, so the judge adopted our second litigation plan: the expiration time of the warranty period was calculated according to the time when the other party paid the acceptance payment, so it was determined that our litigation claims did not exceed the limitation period, so all our litigation claims were also supported.

555


 Company B appealed



      After the judgment of the first instance, Company B appealed and submitted a product acceptance form, the date on which stated that our claim had exceeded the statute of limitations.

66


Responding to the lawsuit in the second instance



Company B deliberately submitted evidence late

01

   We believe that Company B deliberately concealed evidence

unfavorable to itself in the first instance, and now the provision of such evidence in the second instance is overdue, which exceeds the statutory time limit for presenting evidence, and also seriously violates the principle of good faith in litigation, and the court of second instance should not accept the evidence, and should send a judicial recommendation to Company B and impose penalties.

The law stipulates that:

Article 68 of the "Civil Procedure Law of the People's Republic of China" 

stipulates that if a party fails to provide evidence within the time limit, the 

people's court shall order it to explain the reasons; if the party refuses to 

explain the reason or the reason is not sustained, the people's court may, 

according to different circumstances, refuse to admit the evidence, or 

admit the evidence but give him a reprimand or a fine.

Civil Procedure Law of The People's Republic 0f China Article 102 of the Interpretation of the Supreme People's Court on Application stipulates that the people's court shall not accept evidence provided by a party within the time limit due to intentional or gross negligence.

What exactly is the criterion of "product acceptance".


02

At the second-instance trial, Company B submitted a product acceptance 

form, intending to prove that our request exceeded the statute of limita

tions based on the time of product acceptance. However, at the hearing, 

Company B claimed that the "acceptance" on the document referred to 

the appearance acceptance, and that the document did not specify which 

part of the acceptance referred to.

We quickly flipped through the contract involved in the case during the trial and found that the contract clearly stated that acceptance refers to 

the commissioning and operation of qualified operation, so we immedia

tely raised this point with the judge and informed the judge that the time 

on the product acceptance form submitted by Company B was not the 

"acceptance time" to calculate the warranty period time.


77


Result of the second instance: the two parties settled the case through mediation



     After the second-instance trial, Company B knew that there was no hope of winning the lawsuit, so it took the initiative to communicate with Company A about mediation, and finally, the two parties settled the case through mediation, and Company B paid all the principal in a lump sum three working days after the mediation letter was issued.

88


 Case handling experience


  When we first accepted the entrustment of Company A, because the statute of limitations was involved, and there was no written evidence of dunning, our expectations for the outcome of this case were not very optimistic.However, in the process of handling the case, we broke the routine and immediately changed our thinking, actively prepared materials and 

responded to the lawsuit from the aspects of witnesses and the time from the start of the extended warranty period, and drafted written materials and communicated with the judge many times before and after the trial.In the case that Company B violated the principle of good faith and 

deliberately submitted materials late during the trial, we also "fought 

psychological warfare" in court and listed legal provisions to put pressure on Company B. In the case of a loophole in Company B's speech at trial, 

we also immediately seized the loophole and broke it one by one, and finally obtained a good result and won the trust and praise of customers.


                                                                                                                                   Handling lawyer

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Lawyer Zhang Limin

      Since his practice, he has focused on the handling of civil and commercial litigation cases and perennial legal counsel work, and has hosted construction contract disputes, commercial housing sales contract disputes, equity transfer disputes, etc., helping consultants to build compliance management systems, conduct contracts and internal documents review, and have won the trust and praise of customers with a responsible and rigorous attitude.

      Long-term service to internationally renowned enterprises, including but not limited to: Rockwell, Ingersoll Rand, Hassell, Keng Xiao Design, Dutz Design, China Chengxin Group, Dengfu Machinery, Beijing Zhongheng and other enterprises.



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Lawyer Liu Zhentao

     With a solid theoretical foundation and rich work experience, he has assisted many companies in drafting or organizing the review of the company's important rules and regulations, and formulating standard contracts. Participate in the legal work of the company's investment, financing, leasing, asset transfer and other important business activities involving the company's rights and interests, and provide effective legal opinions and suggestions for enterprises.

     Long-term service to international well-known enterprises, including but not limited to: METRO Group, Haihong Coatings, Dentiford Machinery, Jotun Coatings, Beijing Zhongheng, China Property & Casualty Insurance, CICC Jewelry, Luyi Wood, Ruipai Machinery, Shanghai Doudou, Shanghai Dongfluorine Chemical, Shanghai Jiafluorine and other enterprises.


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