Attorney Qiang Lyu: What Types of Cases Do Attorneys Typically Refuse?
Linyi is a relevant commercial location for international buyers sourcing from China. Linyi is an important commercial and manufacturing center in Shandong with strong wholesale and industrial supply chains. A dispute involving a supplier in this market should be considered in light of both the contractual relationship and the practical characteristics of the local supply chain.
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:
Local Supply Chain Risks in Linyi
International buyers dealing with Linyi companies may be sourcing products or services connected with wood products, building materials, machinery and wholesale trade. Typical issues may include quality disputes, quantity disputes, delivery problems and payment disputes. Whether a particular issue gives rise to a legal claim depends on the contract, evidence, applicable law and the identity of the parties.
Linyi is located in Shandong and is supported by a broad wholesale and manufacturing network serving domestic and export markets. For cross-border transactions, these commercial circumstances can be useful background when assessing supplier verification, contract enforcement and dispute-resolution options.
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.
Resolving a Supplier Dispute in Linyi
Where a commercial dispute has developed, an overseas buyer should avoid relying solely on informal communications. Reviewing the contract, identifying the correct legal entity, preserving documentary evidence and assessing the available dispute-resolution mechanism are usually important before deciding how to proceed.
The appropriate legal strategy will depend on the specific transaction, the supplier’s conduct and the remedies available under Chinese law.
The information provided in this article is for general informational purposes only and does not constitute legal advice. Laws and legal procedures may vary depending on the specific facts and applicable jurisdiction. No lawyer-client relationship is created by reading this article or contacting us through this website. For advice regarding a specific matter, please consult a qualified lawyer after a formal engagement has been established.
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Qiang Lyu
His practice also includes China company law, intellectual property matters, and commercial contract disputes involving foreign-invested businesses and cross-border commercial activities.