Allen
- Aug 1, 2022
- 2 min read

Larry Zhou Successfully Represented a Chinese Factory to Collect Debts from an American Company

Attorney Larry S.C. Zhou represented a Shenzhen Factory to recover money(200,000 US dollars) from an American buyer and successfully recovered the overdue payment.

A Shenzhen garment factory has reached a trade cooperation relationship with an American company. From Year 2020- 2021, Shenzhen factory continuously exported ready-made clothes to the American company. The two sides did not sign a formal sales contract, but just confirmed the order by email. The total amount of exported goods was up to hundreds of thousands of US dollars. In the online communication between the representatives of both parties, it was agreed that the U.S. purchaser should pay the corresponding payment within one month after the delivery of each batch of goods.

However, after the Shenzhen factory completed the delivery of the goods as agreed, the American company repeatedly delayed payment of the goods on the grounds of the company's financial difficulties. As of the end of 2021, the American company had only paid less than half of the total amount of goods, and more than 200,000 US dollars had not been paid.

Moreover, since Shenzhen factory refused to continue to deliver the goods in other subsequent orders to the American company without receiving the payment for delivered goods, the American company took this as an excuse to claim that the cooperation relationship with Shenzhen factory was broken, refused to communicate with Shenzhen factory again, and refused to pay the overdue payment. Therefore, in 2022, the Shenzhen factory contacted attorney Larry S.C. Zhou from Landing Shenzhen law Offices to seek help.

After accepting the engagement, Landing Lawyers instructed the Shenzhen factory to collect and provide evidence, mailed and sent a lawyer's letter to the American company, and called the boss of the American company for communication, but the boss of the American company did not make any response and has been avoiding facing this dispute.

Therefore, in order to force the American company to start negotiations with us, Landing Lawyers collected the contact information of all the employees of the American company, as well as the contact information of the industrial and commercial department, chamber of commerce, clothing industry association and customs the city where the American company is located, and informed these employees, departments and associations of the fact of the breach of contract of the American company, and continued to take further measures to continuously put pressure on the American company.

Finally, under the continuous and multiple pressure of Landing Lawyers, the boss of the American company felt afraid, took the initiative to contact Landing Lawyers to negotiate a settlement plan, and hired an American lawyer as a representative to negotiate. After the active negotiation of Landing Lawyers, the Shenzhen factory reached a settlement plan with the American company and signed a settlement agreement, which stipulated that the American company should pay more than 200,000 US dollars to Shenzhen factory in installments after signing the agreement.

After signing the settlement agreement, the American company paid on time and Shenzhen factory has successfully received the payment. With the efforts and professional services of Landing Lawyers, this transnational dispute was successfully resolved.