In cross-border litigation, particularly in cases involving international trade and contract disputes, companies often face the dilemma of where to initiate proceedings: should the lawsuit be filed domestically, or should the company proceed with litigation in the defendant’s home country? This decision not only affects the likelihood of winning the case but also directly influences the efficiency and enforceability of the judgment.
Recently, the legal team led by Lawyer Fan Zhang successfully represented a Hong Kong company in a trade dispute against a South Korean enterprise and secured a favorable judgment by filing the lawsuit in South Korea. This case illustrates that, in certain scenarios, pursuing litigation in the defendant’s home jurisdiction is more advantageous for enforcing the judgment and protecting the claimant’s interests.
Key points:
1. Increasing Judgment Enforcement Efficiency
Even if a company wins a lawsuit in its own country, enforcing that judgment can become highly challenging if the defendant’s assets are located abroad. Although international conventions like the Hague Convention and other judicial assistance treaties exist, the cross-border enforcement of judgments can still face legal barriers and complex procedures, such as judicial cooperation, recognition of foreign judgments, and execution processes. Filing the lawsuit directly in the defendant’s jurisdiction can significantly reduce execution time, avoiding potential delays caused by procedural issues.
2. Securing a More Impartial Judgment
Filing a lawsuit in the defendant’s home court can leverage the local legal environment and judicial resources. Local courts have a deeper understanding of their own country’s laws and commercial practices, which allows for a more precise assessment of the case’s facts and better consideration of both parties’ interests. For instance, in this case, the defendant claimed that the import prices did not match the actual transaction prices. By litigating in South Korea, the court was able to accurately identify the fraudulent pricing documentation provided by the defendant and rendered judgment in favor of the Hong Kong company.
3. Reducing Legal Conflicts and Procedural Barriers
Cross-border litigation often involves conflicts in the application of laws, standards of evidence, and procedural rules. Initiating the lawsuit in the defendant’s jurisdiction enables the local court, which is more familiar with its own legal system and procedural requirements, to effectively handle these legal conflicts, thereby minimizing obstacles related to the applicability of foreign laws.