Case Background
Our firm represented a Korean household consumer (Plaintiff) in a custom furniture contract dispute with a Beijing furniture company (Defendant). In 2007, the Plaintiff commissioned the Defendant to produce custom cabinets and a sofa. After paying the full fee (including a deposit), the Defendant failed to deliver the products as agreed, disrupting the Plaintiff’s renovation plans.
Case Challenges
- Disagreement on Breach Determination: The Defendant counterclaimed that the Plaintiff breached by not paying in full.
- Protection of Foreign Consumer Rights: A foreign natural person claimed non-monetary losses (travel expenses, lawyer fees).
- Dispute over Deposit Penalty Application: Whether the claim for double deposit refund met statutory requirements.
- Conflict of Laws: Korea-related consumer contract lacked governing law clause.
Our Service Highlights
1.Precise Lockdown of Performance Facts:
- Verified full payment of processing fee (including deposit) through bank statements.
- Extracted the Defendant’s production records confirming they never initiated the custom manufacturing process.
2.Equal Protection of Foreign Rights:
- Invoked Article 107 of the Contract Law to establish the standard for fundamental breach.
- Argued that the Consumer Rights Protection Law applies without nationality distinction.
3.Rigorous Claim for Loss Compensation:
- Travel Expenses: Correlated claims with renovation schedules and GPS location data.
- Lawyer Fees: Cited Supreme People’s Court precedents supporting recovery of reasonable enforcement costs.
4.Rational Argumentation on Governing Law:
- Confirmed the parties’ choice of Chinese law during the hearing.
- Established the court location (Beijing) as the place of closest connection.
Case Outcome
- Contract Termination Granted: The processing contract was lawfully terminated.
- Full Fee Refund: 100% of the processing fee was refunded.
- Deposit Penalty Applied: Double deposit refund was supported.
- Indirect Losses Covered: Full compensation awarded for travel expenses and lawyer fees.
- Procedural Costs Shifted: Litigation costs borne entirely by the breaching party.
Case Insights
1.Risk Control Points for Foreign-Related Processing Contracts:
- Deposit clauses must clearly stipulate penalty application conditions.
- Stage inspection milestones should be agreed for custom products.
- Recommend bilingual contract versions for foreign parties.
2.Loss Compensation Claim Standards:
- Original receipts must be kept for indirect losses, and causation proven.
- Lawyer fees can be pre-agreed as a remedy cost for breach.
3.Value of Sovereign Judicial Practice:
- Chinese courts have jurisdictional advantages for contracts performed within China.
- Foreign consumers equally enjoy the protection of the Consumer Rights Protection Law.
This case highlights our firm’s professional capabilities in cross-border consumer service disputes: Performance Fact Reconstruction | Rigorous Protection of Consumer Rights | Systematic Claim for Loss Compensation
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