Courts in China
January 5, 2009 by Chinatex
Below is a current article from the China Daily. It is interesting and hopefully can help clarify the differences between western, especially U.S., and the Chinese judiciary. I have bolded the major points and added my comments. Yeeha! Chinatex
Busy year on cards for courts
By Xie Chuanjiao (China Daily) Updated: 2009-01-06 07:38
Courts in Beijing will handle more economic cases this year, as the number of companies affected by the global financial crisis continues to grow, the city’s top judge said yesterday. Speaking at an annual work conference in the capital, Chi Qiang, president of the Beijing Municipal High People’s Court, said: “Cases related to finance, real estate, bankruptcy, company liquidations and foreign-related economic cases will increase significantly this year.
“There will also be a rise in the number of cases involving labor disputes.” Yes there will be as more businesses restructure and more hungry Chinese lawyers pursue litigation against deep pocketed employers on behalf of their clients.
Last year, Beijing courts handled 23,055 cases involving loan contract disputes, up 25 percent on 2007; 13,392 labor disputes, up 75 percent; and 84 bankruptcy cases, up 83 percent. They also ruled on more than 30 cases involving the transfer of financial bonds worth 900 million yuan ($132 million).
“In all future cases, courts must keep in mind the need to prevent the loss of State assets, maintain stability in the financial markets, and protect the legal rights and interests of investors,” Chi said. Note the first goal of the courts who are under strict direction from the government. This is a significant difference in the legal system and if you are even contemplating litigation you should be aware going in that the rules and objectives are different.
With the property market in decline, there will also be an increase in the number of disputes between building contractors and loan providers, he said.
“In dealing with these cases, we must put the protection of workers’ rights and interests foremost, and hand down due punishments to those who offer fake mortgages, prolong the payment of wages, or fail to pay their dues,” he said.
Cases involving disputes over labor contracts should also be handled in a balanced way to protect the interests of both sides, Chi said. Bottom line here is to make sure you have legal and enforceable labor contracts with your employees. This will go a long way in ensuring that there is real balance.
With the number of labor dispute cases expected to rise again this year, a Beijing lawyer has called for all those involved to practice caution and show patience. “Under the law, such firms are obliged to compensate workers, but if they are unable to do so immediately, employees should try to understand the situation and, in some cases, accept delayed payments,” Qiu said.
In summarizing last year’s achievements, Chi said Beijing’s courts had done an excellent job in helping to maintain social order while also promoting scientific developments related to the hosting of the Olympics.
Over the year, courts handled 520 cases involving the construction of Olympic venues, road projects, house relocations and intellectual property right issues linked to such things as the Games’ logos and the Fuwa mascots, he said.
