Court Action for Collection of Outstanding Debt?

In Taiwan, how do I apply for a court action in regard to the collection of an outstanding debt?

You can file directly in the court here for payment. How are your Chinese skills? Make an appointment with me sometime and I will show you how to fill out the paperwork.

I am in the Nei Hu District of Taipei. Send me an email.

Court fees are the amount equal to 1% of the value of the claim in the District Court and equal to 1.5% of the value of the claim in each of the High Court and the Supreme Court.

I’ll post some info re litigation as soon as I get into the office this morning.

[b]CIVIL LITIGATION IN TAIWAN

A. Court System[/b]

Taiwanese courts are divided into three levels, the District Courts, the High Court and the Supreme Court. District Courts hear civil cases of the first instance; the High Court tries cases that have been appealed from a District Court; and the Supreme Court, as the court of the third instance, tries cases which judgments have been appealed from the High Court.

District Courts and the High Court may deal with issues of fact as well as of law; however, the Supreme Court deals only with issues of law. In principle, any case may be appealed to the High Court and, finally, to the Supreme Court. However, in practice, judgments of cases in which the value or amount of the claim disputed does not exceed NT$ 60,000 may not be appealed to the Supreme Court. Thus, in cases where the disputed claim is less than NT$ 60,000, the High Court’s judgment is final.

Taiwan utilizes a civil law legal system. As such, cases are tried before professional judges without juries. Generally, District Courts are presided over by only one judge who hears and decides each case. However, in cases considered very serious, as many as three judges sitting in council may hear the case and render judgment.

B. Court Fees

At the District Court, court fees are equal approximately to 1% of the amount claimed, while at the High Court and Supreme Court, court fees amount to 1.5% of the amounts appealed in each instance. Court fees are borne by the defeated party when the judgment becomes final.

Foreign plaintiffs lacking recognition under ROC law may be required to deposit an amount approximately equal to 3% of the claim to the court as security for payment of the court fee. Plaintiffs who prevail completely or with the consent of the defendant may recover this security in full. Attorneys’ fees, however, may not be recovered from the opposing side absent an agreement otherwise.

C. Credit Search

As it is important to ascertain whether the total value of the debtor’s properties and assets is sufficient to cover the costs of litigation and enforcement and the outstanding debt, it is prudent to conduct a credit search with respect to the defendant(s).

Local private agencies typically charge between NT$ 15,000 to NT$ 25,000 (approximately US$ 435 to US$ 725) to conduct a standard credit search of a company in Taiwan. Results of such a search are usually available in one or two weeks. Additional time and costs may be required if substantial travel and translation is required.

Once the existence of bank accounts, properties or other assets with sufficient value to cover the claim is confirmed, a plaintiff can decide whether it wishes to freeze defendant’s assets or to send a demand/warning letter to defendant prior to initiating litigation.

D. Provisional Attachment

To prevent a debtor from disposing of his property, it is advisable that the creditor apply to the court to attach the debtor’s assets. This application may also be made with regard to a claim not yet due for performance. A creditor may apply to the applicable court to seize a debtor’s property even before initiating litigatuion. In practice, the court will request the creditor to lodge a bond in the amount of one-third (1/3) of the claimed amount as security for damages that might be sustained by the debtor as a consequence of the seizure. The debtor may, if able, choose to furnish the full amount of the claim as security to stay the order of attachment or to withdraw the attachment. If the provisional attachment is later proven to have been improper, the creditor may be liable for damages sustained by the debtor as a result of the attachment.

E. Provisional Injunction

Additionally, plaintiffs in Taiwan may apply for provisional injunction prior to receipt of a favorable final judgment, to enjoin a defendant from continuing or commencing a certain act. Unlike provisional attachment of property, a plaintiff seeking provisional injunction must furnish as security a bond in an amount equal approximately to the entire estimated losses, which will be incurred by the enjoined defendant. If the final judgment favors the defendant, he will be entitled to compensation of his damages from the plaintiff’s security bond.

F. Provisional Execution

Also, if a plaintiff is awarded a favorable judgment, which has not yet been finalized, he may apply for provisional execution of that non-final judgment. There are two ways to obtain such an order. The first method is where a court orders payment of a negotiable instrument or renders a judgment based upon the acceptance of liability by the defendant. In such cases, the court will declare, ex officio, a provisional execution of the judgment. In the second method, specifically utilized in commercial litigation, the plaintiff applies directly to the court for provisional execution.

As with provisional attachments, the plaintiff must furnish as security an amount equal to approximately one third (1/3) of the value of the judgment to effect the provisional execution. Defendants may also furnish a security, in advance, in the amount of the full value of the judgment to avoid an order of provisional execution.

The advantage for a plaintiff in obtaining a provisional execution on a non-final judgment is that the same is somewhat of a pre-emptive strike against defendant by executing on his property even before the litigation becomes final.

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[quote=“camalolo”]Richard, Tigerman : thanks a lot for your replies !

I guess the 100.000 NTD were Lawyer Fee, not court fee… How much should my friend pay to a Lawyer approximately to help him, knowing that the case is very well documented ?[/quote]

That’s a difficult question to answer… It depends on the complexity of the case, the number of hearings the judge wants to hold, the cooperativeness of the other party, etc…

Our lawyers charge at the following hourly rates:

Senior Partners… US$ 280 - US$ 300
Partners… US$ 240
Junior Partners US$ 200
Associates… US$ 160 - US$ 180

I think our fee rates are fairly competitive…

A collection agency couldn’t solve the problem? Maybe he didn’t choose a convincing enough collection agency…Taiwanese collection agencies are some of the best

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