Huidong Shoe Boss Successfully Went To The United States To Collect Debts

"We hope to tell more of our peers, not to be afraid of lawsuits abroad, and if you are fraudulent, you should stand up bravely." - Chen Shengda

"We can fight for justice, and small businesses can also go to the United States for lawsuits. They think we have no culture and are afraid to file lawsuits in the world." - Li Naizhong

After waiting for more than 2 years, Huidong shoe factory boss Chen Sheng Da and Li Naizhong are in good mood these days. In May 21st of this year, they joined 2 other Guangdong women's shoes owners in the United States federal court to sue RAY CAI, the boss of a footwear importer in the United States (Chinese name Cai Zhiping, Chinese American, native Guangdong Meizhou, and former Shenzhen Wuzhou circuit group top management), and successfully prevented the defendant from failing to apply for bankruptcy for $3 million. The success of the case can provide a lot of inspiration for Chinese export enterprises beset by breach of contract and contractual fraud in recent years.

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Win first battle

"Although no judgment has been issued, the federal court of the United States has decided in court that Cai Zhiping, the head of CITICR O SS, must bear the debts of 4 Guangdong entrepreneurs." At 10 a.m. on June 8th this year, lawyer Chiu Po hung of California told reporters on the phone.

Commissioned by Qi Bo hung, the 4 business owners, in addition to the general manager of Huidong Yi Dan Shan shoe company Li Naizhong, general manager of Huizhou Wanda shoes Chen Sheng 2 people, as well as the general manager of Shenzhen Jun Yan Guan Guan, Guangzhou crown and shoe industry Yu Bin.

According to reports, in 2004, the four Chinese enterprises began to do business with the US CITICROSS company. Because the two sides once had good cooperative relations, Chinese enterprises overbelieved the credibility of the US company, did not require the other party to provide bank letters of credit, but used cash payment after arrival. Since 2006, CITICROSS has started to default on payment.

Before August 2007, 4 people went to CIT ICR O SS for more than 10 times.

In September 2007, Li Naizhong and other 4 women's shoes manufacturers and exporters entrusted lawyer Qi Bo hung to conduct civil commercial litigation in California. Subsequently, they went to the United States for 3 times to collect evidence and testify in court. At the end of 2008, they won a complete victory in the Pomona District Court of California. The court decided not only to breach the CITICR O SS, but also to judge the plaintiff's civil fraud charges, such as Chen Sheng Da and other 4 plaintiffs, and ordered the defendant to compensate the four Chinese enterprises for the loss and interest 3 million dollars.

Wave again

But before the Pomona district court adjudicated, Cai Zhiping, the head of CIT ICR O SS, filed an application with the federal bankruptcy court to claim her personal bankruptcy and could not afford any debts.

According to the bankruptcy law of the United States, if a debtor can prove that his personal assets are not in debt or unable to repay his debts, he will usually get the bankruptcy petition smoothly, thereby writing off his debts.

The vast majority of bankruptcy applications will be approved by the federal bankruptcy court, so that the applicant has a new life start, but the law also stipulates that if the debtor is caused by fraudulent means, the bankruptcy application may be rejected, and the debtor will continue to be responsible for the debt until it is paid off.

Qi Bo Hung said that this kind of personal bankruptcy application generally passed more than 80% in the United States. If Cai Zhiping is "bankrupt", he will not have to pay the debts owed by Li Naizhong and other 4 people. Qi Bo hung filed an application to the US federal bankruptcy court in order to veto Cai Zhiping's bankruptcy.

Second World War victory

After more than a year's preparation, in May 17th of this year, Li Naizhong and other 4 people departed from Shenzhen to Losangeles, the United States. In May 20th and 21st, as a plaintiff and witness, 4 people stood in the United States Court for the second time to testify for their debts.

Qi Boxiong introduced in the federal bankruptcy court. CITICR O SS argued that there were 2 reasons for their "delinquency" in arrears of payment: first, the quality of the products provided by the Guangdong enterprise owners was not good enough, and the two was the delay in delivery time of the Guangdong enterprises.

"For the first question, the other side admitted in court that from receiving goods to finding product quality problems, they generally need 6 months, but at the same time, they promise a payment period of 45 days. They have nothing to say in this regard. The second question is that we are giving evidence that all delivery schedules are made by the other side, so there is no possibility of delay in delivery time. Qi Bo Hung said. Qi Bo hung asked through the specific facts that the defendant was forced to admit that the reason for the late arrival of the goods was the defendant himself, rather than the plaintiff's responsibility.

In May 21st, when the trial ended, the judge made a judgment on the spot. The judge found that the defendant had taken commercial fraud against the four plaintiffs, and therefore sentenced the defendant Cai Zhiping to the bankruptcy petition and refused to pay the debt of 3 million dollars to the four plaintiffs.

In court, Cai Zhiping's lawyer said he would continue appealing.

Cheat

Small orders for bait large orders set up

Xu Rongping, salesman of Wanda shoe company, Huidong, introduced the footwear importer of the United States to Cai Zhiping from a shoe exhibition in Germany in 2005. Shortly afterwards, Wanda began its business cooperation with the company.

"At the beginning it was 30 days, and it was 45 days later. But generally they are paid within 60 days, and there is no problem in several months at the end of 2005. But by 2006, many goods were only partially paid, and they were not in accordance with the contract. " Chen Shengda, general manager of Wanda, said that since July 2006, he has travelled to California for many times. She orally asked CIT ICR O SS to repay the loan, but she had been rejected by the other party.

Guan Yun, general manager of Shenzhen Jun Yan, introduced in a testimony. At the end of 2005, the company began to cooperate with Cai Zhiping. At first, Cai Zhiping said that every time he arrived within 30 days, he paid the bill in full. "The pattern of his ordering here is similar to that of his ordering mode at other manufacturers. At first, he ordered small quantities of orders and was able to pay on time. In this way, he established trust in our factory and other manufacturers, and his order size increased greatly. In February 2006, March and May, Cai Zhiping ordered 3 lots of orders of one hundred thousand yuan, but all of them delayed payment. In February 2007, Cai Zhiping paid $162 thousand, but his final arrears were still $958 thousand.

"First small orders, stable payment for a period of time, and then increase the order quantity, the loan is not in time." Li Naizhong said his Yi Shan shoes company has also encountered similar problems of Wanda, and its sales target is also CIT ICR O SS. Due to the pressure of $1 million on loan, Li Naizhong will dissolve himself in a factory of 700 people in Huang Bu Town, Huidong county.

difficult

Wearing cultural shirt protest was taken away by police

In foreign countries, Chen Sheng introduced that they had gone through such difficulties as fighting alone, language barrier, ignorance of law and so on.

Few businessmen reveal their customers to each other. Chen Sheng Da and other 4 customers are C IT IC R O SS company. Since 2006, four people have gone to the United States to collect debts, but they seldom know that they are the same. In January 2007, in the C IT IC R O SS company, Chen Sheng Da met for the first time. "Oh, you also do business with him!" in the CITICR O SS company, the two acquaintances who had already known each other exchanged greetings.

There are at least 10 women's shoes enterprises in Guangdong, which have disputes with the C IT IC R O SS company. In August 2007, the 10 enterprises met for the first time in Huidong. Chen Shengda introduced that after the meeting, 4 of their enterprises departed for Losangeles, the last effort to negotiate the payment of goods. "The other 6 did not go because they did not keep enough evidence."

Chen Sheng Da and so on 4 people each brought a T-shirt with "I still have sweat and money". One afternoon in August 2007, after negotiations broke out with CIT ICR O SS, 4 people stood at the door of the company wearing a cultural shirt. A few minutes later, they were taken away by the local police, and they were asked to sign a written promise that they would not be close to the 2 meter range of the CITICRO SS company.

Since then, through the help of the Chinese Consulate General in Losangeles, Chen Sheng Da and others have contacted more than 10 American law firms. In September 2007, they formally commissioned Qi Boxiong to claim compensation for his claim for the case.

Caution

Lawyer: we must leave good evidence.

Qi Bo said that the case was successful because the 4 companies such as Chen Sheng Da and others provided better documentary evidence. "The chain of evidence plays a key role."

Qi Bo hung suggested that China's small business owners should follow normal business procedures in international trade, and usually pay attention to the preservation of evidence such as contract agreements.

"But in fact, in many shoe factories in Huidong County, a fax order sheet instead of a contract is very irregular." Chen Sheng Da, vice president of Huizhou footwear industry association, said that in Huidong county Huang Bu Town (the largest female shoe professional town in Huizhou), there were many owners who had been defrauded but failed to claim by legal means. "I estimate that in this respect, the owners of Huang Bu Town in Huidong County lose more than 10 million yuan a year."

Qi Bo hung also suggested that many American Importers engaged in trade with small business owners in Guangdong are also in the United States and China. "It is suggested that Chinese business owners should add an arbitration agreement with foreign companies to do international trade so as to better implement relevant cases." Qi Bo Hung said that China's export enterprises should insist that foreign importers should provide bank letters of credit to ensure the safety of the goods, and if enterprises encounter breach of contract or fraud, they should make use of legal means to recover losses in time.

Sigh with emotion

Wash the feet of the owner of the field

We can also fight transnational cases.

"If we win the lawsuit, we must boldly go out so as not to deceive more people. We want to tell some foreign companies that our owners who wash their feet on the field are not so good at cheating, and we will also use the law." Recently, Chen Sheng Da, who won the lawsuit, excitedly introduced to reporters in his office that he owed $500 thousand, much less than Li Naizhong and others. "Even though the cost is equal, I am equally happy."

In fact, in addition to Chen Sheng Da and Li Naizhong as Huidong women's shoes manufacturer, Guan and Yu Bin's head office are in Shenzhen and Guangzhou, but their women's shoes production line is also in Huidong county. The 4 were owed $500 thousand, $1 million, $1 million, and $500 thousand respectively.