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Working with Chinese Clients
For many years, the term “Fortress China” was used to describe Chinese defendants' approach to litigation in the United States.
The difficulties of litigating against a Chinese defendant often begin at the start of litigation, as compliance with the Hague Service Convention is the exclusive means by which service may be accomplished. Under the Hague Service Convention, the summons and complaint must be translated into Chinese, and then the plaintiff must request service of process through the Chinese Central Authority. The entire process can take a good deal of time.
Additionally, proper service of process on a Chinese entity does not guarantee that that entity will litigate and defend against the lawsuit. Until recently, many Chinese companies served with a U.S. complaint avoided responding to the suit, permitting the case to proceed in default. For example, in 2010, a Virginia woman was awarded a $4.75 million jury verdict in a lawsuit arising out of a Fourth of July fireworks accident. Although the plaintiff named both the Pennsylvania fireworks retailer and the Chinese fireworks manufacturer, the latter never responded to the lawsuit.
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