Attorney Qiang Lyu: What Types of Cases Do Attorneys Typically Refuse?

Some foreign clients may find it difficult to find a Chinese attorney to handle their disputes with Chinese companies, sometimes searching for three to six months without success. Based on my experience, there are three main reasons:

First, the client expects the attorney to guarantee a win or provide a specific percentage chance of success. Such clients would be better off turning to an insurance company, because their real goal is to shift their own business risks onto the attorney. In China, attorneys are not permitted to make absolute promises about case outcomes.

Second, even if the case is won, it may be very difficult to actually recover money. For example, the dispute may involve a relatively small amount but highly complex issues. The attorney might win the first instance, but the other party may appeal, leading to a second trial. Even after winning the second trial, enforcement may reveal that the opposing company has no remaining assets to seize. As a result, the client may end up spending more than they recover, or the legal fees may consume most of the compensation, leaving the client with less than what they paid in legal costs.

Third, the client requests a “risk-based fee arrangement” — i.e., paying little or no upfront fee, with the attorney receiving a percentage of the recovery only if the case is won or enforced. Attorney Qiang Lyu has consistently opposed this model because it easily leads to conflicts. If the case is successful, the client may feel the attorney is taking too large a share, even though a written agreement was made. As the case develops or the relationship between the parties shifts, the client may become dissatisfied, thinking, “Why should the attorney take such a large portion when their effort was not that great?” This mindset is especially common under full risk-based fee arrangements, often causing disputes and making attorneys reluctant to take on such cases.

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Qiang Lyu

Attorney-at-law (PRC) ｜ Cross-Border Dispute Resolution

Qiang Lyu focuses on cross-border commercial dispute resolution, China supply chain disputes, international trade litigation, and foreign-related debt recovery matters. He has represented and assisted clients from the United States, Japan, South Korea, and Europe in disputes involving Chinese manufacturers, suppliers, and international business transactions. His practice also includes China company law, intellectual property matters, and commercial contract disputes involving foreign-invested businesses and cross-border commercial activities.

Email: lvqiang [at] xuzhousoft.com

Tel / WhatsApp / WeChat: +86 187 9542 8064