CH
OA

Legal Fees

By:Date:2016-04-06

Litigation costs involve:
Litigation fees + other litigation fees (if any) + legal fees (if a lawyer is hired)

I Litigation Fees

Fees are differentiated between assets cases and non-assets cases.

Non-assets cases involve: divorce, infringement of citizen’s rights, infringement of reputation etc. the Court will collect the fees from the parties themselves. 

Assets cases involve: debts, economic contractual disputes, assets rights and interests etc. the Court will collect the fees from the parties themselves.

Using the example of a RMB 100,000 case, according to Court Rules, litigation fees should be RMB 2,300.

II Other Litigation Fees (if any)

The Court will collect other litigation fees during the process of the litigation. 

And it includes
(i) Pre-trial costs; authentication costs; announcement costs; translations costs (apart rom languages commonly in use in the area)
(ii) Witness, appraiser, translators – transport fees, accommodation fees, living expenses, lost-of-income subsidies etc.
(iii) Procedural preservation fees
(iv) Judgment execution, reconciliation agreement execution fees
(v) Other fees the Court decides that the relevant parties should pay

III Legal Fees

Due to difference in economic development in different areas, legal fees may differ. According to the [Shanghai Lawyers Guideline for Service Charges]; for cases within RMB 100,00, legal fees are around RMB 8,000 to RMB 12,000, exact fees will be decided on the difficulty of the case and the agreement between the party and the Lawyer.

As above, for cases within RMB 100,00, the relevant party should pay
- Litigation fee + legal fee + other litigation costs = RMB 2,300 + (RMB 8,000 to RMB 12,000)
- Hence the total payable fee would be around RMB 10,300 to 14,300 + other litigation costs.
- These fees should be paid in advance, as for the Litigation fee, it should be appropriated between the Defendant and the Plaintiff as decided by the Court
- Legal fees would be paid by each respective party themselves, apart from certain cases of infringement

Attachment:
Quick Reference for Shanghai Lawyers Guideline for Service Charges
- RMB 50,000 and below X times 8% (lowest being RMB 3,000) X times 12% (lowest being RMB 3,000)
o For RMB 50,000 equates to RMB 4,000 to RMB 6,000
- Between RMB 50,000 to 100,000 X times 8%, X times 12%
o For RMB 100,000 equates to RMB 8,000 to RMB 12,000
- Between RMB 100,000 to 500,000 X times 5% + 3,000, X times 7% + 5,000
o For RMB 500,000 equates to RMB 28,000 to 40,000
- Between RMB 500,000 to 1,000,000 X times 5% + 3,000, X times 7% + 5,000
o For RMB 1,000,000 equates to RMB 53,000 to 75,000
- Between RMB 1,000,000 to 5,000,000 X times 3% + 23,000, X times 5% + 25,000
o For RMB 5,000,000 equates to RMB 173,000 to 275,000
- Between RMB 5,000,000 to 10,000,000 X times 3% + 23,000, X times 5% + 25,000
o For RMB 10,000,000 equates to RMB 323,000 to 525,000
- Between RMB 10,000,000 to 50,000,000 X times 1% + 223,000 X times 3% + 225,000
o For RMB 50,000,000 equates to RMB 723,000 to 1,725,000
- Between RMB 50,000,000 to 100,000,000 X times 1% + 223,000 X times 3% + 225,000
o For RMB 100,000,000 equates to RMB 1,223,000 to 3,225,000
- RMB 100,000,000 and above X times 0.5% + 723,000 X times 1% + 2,225,000

Court Litigation Fees (assets cases)
- Below RMB 10,000
o RMB 50
- RMB 10,000 to 100,000
o Amount times 2.5% + RMB 200
- RMB 100,000 to 200,000
o Amount times 2.5% + RMB 300
- RMB 200,000 to 500,000
o Amount times 1.5% + RMB 1,300
- RMB 500,000 to 1,000,000
o Amount times 1% + 3800
- RMB 1,000,000 to 2,000,000
o Amount times 0.9% + 4,800
- RMB 2,000,000 to 5,000,000
o Amount times 0.8% + 6,800
- RMB 5,000,000 to 10,000,000
o Amount times 0.7% + 11,800
- RMB 10,000,000 to 20,000,000
o Amount times 0.6% + 21,800
- Above RMB 200,000,000
o Amount times 0.5% + 41,800

Ganus’Value:Since dispute itself means each side sticks to their argument, it is possible that the other side might win.

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