Recently, the case of financial loan contract dispute represented by Mr. Sun Yanhui and Mr. Liu Yang, our client is a listed company, its paid accounts were pledged, and the other party demanded our client to bear the responsibility of pledge, and the court ruled to reject the other party's all the litigation demands on our client. The attorney successfully helped the client to unseal a large number of accounts in the lawsuit, while avoiding the possible loss of more than 20 million yuan, and achieved significant results, and all parties did not appeal.

Basic facts of the case

The plaintiff in this case is a foreign bank, because of the inability of Company A to repay the loan to it, it sued Company A and six guarantee subjects (including our client) as co-defendants to the court. Four of the six guarantors provided joint and several guarantees for the loan of Company A. Our client and another listed company were pledged for the supply and sale contract with Company A. The plaintiff and our client were pledged 5,000 dollars for the loan. Among them, our party was pledged more than 50 million yuan.

During the trial of this case, the court held that the maximum pledge contract between Company A and the bank was established, and the registration of the pledge was true and effective, but in fact Company A had pledged the accounts without the knowledge of our client. In this case, although the plaintiff tried to prove that it had notified of the pledge of accounts receivable, due to the defects in the manner and content of the notification, our client did not actually receive the notification of the pledge of accounts receivable, and the pledged accounts had long been settled at the time of filing the lawsuit. At the same time, before and during the litigation, the plaintiff applied for a large-scale seizure of our client's bank account because of our client's ability to fulfill its obligations, which led to our client's normal operation being significantly affected and facing operational difficulties.

Difficulties

01

Cross-legal relations and many subjects involved in the case

The case is complex, involving eight subjects, lending, buying and selling, guarantee, maximum pledge and other multiple relationships. At the same time, as the main debtor of Company A and its four guarantee liability subjects did not appear in court to defend, resulting in the facts of the case is difficult to restore, our client is very unfavorable.

02

Payment of accounts but establishment of pledge contract

The cooperation mode between our party and Company A was special, and it was difficult to clearly check the actual situation when the accounts receivable were pledged by the rolling payment settlement method. In this case, although our party had already settled the pledged accounts, it was difficult to deny the validity of the pledge contract and pledge registration by applying the law directly.

03

The account was seized in excess, and the listed company faced operational difficulties

Our party is a listed company, the plaintiff in the pre-litigation, litigation in the repeated application for preservation measures led to our party a large number of accounts repeatedly seized, seriously affecting the normal operation of our party.

Points for lawyers to handle the case

01

Combined with the “Supreme People's Court on the optimization of the rule of law environment to promote the development and growth of the private economy of the guiding opinions” and other relevant provisions, adhere to the communication of the court, over the customer's expectations to unseal all accounts

This case lasted for one year from filing to judgment. After accepting the entrustment, the attorney-in-fact took great pains to visit the court, actively put forward the proposal of replacing the preservation measures, and combined with the Supreme Court's guiding opinions on the protection of private enterprises and optimization of the business environment and other relevant regulations, communicated with all parties in the court, and mailed the situation reflections and other documents to the court, and successfully assisted the client in quickly unsealing all the accounts, which exceeded the client's demand of only part of the account to unseal the account for business purposes. Successfully assisted in maintaining the normal operation of the listed company.

02

Catch the other party's evidence flaws, and defend from the perspective of the validity of notice delivery.

The attorney combined with the practice cases, carefully combed through the other party's evidence to prove the service of the notice of receivables, seized the other party's evidence of the mode of service, the address of the signature of the delivery, the significant flaws in the mode of signature, and successfully denied the validity of the notice of pledge of receivables by citing the legal perspectives of the fields of service and express delivery.

03

Combined with the characteristics of the transaction mode, the fact that the account has been paid, the defense from the perspective of the principle of fairness

By carefully checking and sorting out the financial bills, invoices and other financial data, the attorney explained to the court the special characteristics of the transaction mode in this case, explained the fact that the accounts receivable had already been paid in full, and elaborated on the fairness principle of the civil law that even if the pledge contract was valid, our client should not repeat the payment of the accounts receivable that had already been paid in full.

Conclusion

This case was faced with the complexity of a large number of subjects and intricate legal relationships, the unfavorable fact that the pledge of accounts had been established but actually paid off, and the urgent need to unseal the accounts to protect the normal operation of the listed company. The success of the case exceeded the expectation of the parties to quickly unseal all the accounts and ultimately obtain a judgment in favor of the parties to safeguard their legitimate rights and interests, not only because of the lawyer's excellent legal professionalism, flexible and multi-faceted defense of the case, but also because of his perseverance, responsible and conscientious attitude to handle the case!