Case Studies · Anonymized Examples

Situation：An exporter sold goods to a US buyer on open account terms. After one shipment, the buyer withheld the balance citing a 'quality dispute', while continuing to place new orders — a pattern of escalating arrears.

Approach：

1. Step 1: Evidence review — contract, PO, bill of lading, proof of delivery, and emails to confirm the arrears and whether the quality objection was raised within the contractual window
2. Step 2: Legal path — governing law and forum clauses; limitation period check (US states vary, typically 4-6 years)
3. Step 3: Formal demand letter with proof of service, while suspending further credit
4. Step 4: Negotiation — trade continued cooperation for a written repayment schedule

Key points：

• Quality objections are typically time-barred by contract — late objections rarely defeat a payment claim
• A demand letter both interrupts limitation and fixes evidence; always keep proof of service
• The leverage of continued credit can resolve matters faster than litigation, subject to a solvency check

Outcome (experience range)：(Anonymized example, not a specific case) Common outcome range: written repayment plan within 1-3 months via demand letter and negotiation; litigation/arbitration typically 12-24 months depending on jurisdiction. No outcome is promised and cases vary.

Lesson：Open-account trade should include: a quality-inspection window, late-interest terms, dispute resolution clauses (arbitration preferred), and credit limits tied to payment history.

Situation：After defaulting, the debtor changed contact details and moved operations to a new entity. The creditor feared asset dissipation. We assessed what assets remained traceable and whether interim relief was available.

Approach：

1. Step 1: Intelligence — cross-reference trade history, bank records, public registries, and social media to locate the new entity and asset leads
2. Step 2: Asset map — domestic (shares, property, deposits) and Canadian (corporate registry, land records, bank accounts)
3. Step 3: Route — direct enforcement of a Chinese judgment in Canada is rarely viable; the primary route is a local action with interim freezing relief (Mareva injunction / attachment)
4. Step 4: Engage local counsel in parallel; assess the cost and speed of preservation

Key points：

• Canadian Mareva injunctions require a real risk of dissipation and a serious issue to be tried
• Corporate registry data (directors, historical addresses) is high-value public intel for tracing shell-out maneuvers
• Speed matters: the window from spotting dissipation risk to seeking relief is usually measured in weeks

Outcome (experience range)：(Anonymized example) Common range: 12-24 months for preservation plus local proceedings; many matters settle under freezing pressure. No outcome is promised.

Lesson：Credit limits, periodic reconciliation, and public-record monitoring turn disappearance risk into an early-warning system.

Situation：The creditor holds a winning arbitration award in China, but the debtor's main assets sit abroad. How can the award be enforced overseas?

Approach：

1. Step 1: Verify enforceability — valid arbitration clause, procedural compliance, final award
2. Step 2: Locate assets — the debtor's holdings in target jurisdictions (e.g., Singapore, Hong Kong, the US)
3. Step 3: Route — recognition and enforcement under the New York Convention; where unavailable, evaluate a local action
4. Step 4: Execution — run recognition and asset freezing in parallel to avoid a paper victory

Key points：

• New York Convention states recognize arbitral awards far more readily than foreign court judgments
• Applications must be filed within the local limitation window (e.g., 6 years in Singapore; varies by jurisdiction)
• Freeze first, recognize second: interim relief before the recognition application prevents dissipation

Outcome (experience range)：(Anonymized example) Common range: 6-18 months for recognition and enforcement depending on jurisdiction; outcomes improve markedly where assets are identified. No outcome is promised.

Lesson：Draft cross-border contracts for arbitration (HKIAC/SIAC) with express provision that awards are enforceable in any jurisdiction.

Situation：The decedent owned a US property and passed away in China. Heirs must navigate US probate to transfer title while assessing US estate tax exposure.

Approach：

1. Step 1: Document chain — death certificate (Apostille + translation), will (if any), kinship proof, title documents
2. Step 2: US estate proceedings — local counsel determines small-estate vs. formal probate and appoints a personal representative
3. Step 3: Tax review — US federal estate tax exemption and filing duties (non-resident rules differ); most states add their own tax
4. Step 4: Transfer and options — record title, compare sale vs. rental

Key points：

• US real property follows local law — Chinese inheritance certificates do not transfer US title
• Non-resident estate tax exemptions are far lower than resident ones; run the numbers before filing
• Small estates under state limits can use streamlined procedures at a fraction of the cost

Outcome (experience range)：(Anonymized example) Common range: 3-6 months for small estates, 6-18 months for formal probate; costs typically 1-5% of estate value depending on state and complexity. No outcome is promised.

Lesson：Families with overseas property should plan ahead: joint ownership structures, trusts, or wills materially reduce probate cost and tax.

Situation：The decedent left a foreign will, but held real property and bank deposits in China. Can the will take effect in China, and how do heirs complete local transfers?

Approach：

1. Step 1: Will validity — Chinese formal requirements (holographic, notarized, printed, etc.) and the confirmation procedure for foreign wills
2. Step 2: Foreign documents — notarized/Apostilled originals with certified translations
3. Step 3: Domestic procedure — inheritance notarization (or judicial confirmation) to transfer property and withdraw deposits
4. Step 4: Multi-jurisdiction coordination — run parallel tracks when overseas assets also exist

Key points：

• Foreign wills are not directly enforceable in China — confirmation (notarial or judicial) is required first
• Newer will forms (e.g., printed) have strict formalities (two witnesses, signatures, dates); foreign wills require item-by-item review
• Inheritance notarization typically requires all heirs to appear or submit authenticated powers of attorney

Outcome (experience range)：(Anonymized example) Common range: 1-3 months for domestic notarization with complete documents; 6-24 months where the will is contested. No outcome is promised.

Lesson：Cross-border families should maintain separate wills for domestic and foreign assets with cross-references, avoiding single-will validity gaps.