Our Firm represents clients in negotiations and litigation relating to collection of accounts receivable, disputes over service contract payments, disputes over intercompany transaction agreements, disputes over corporate management, and disputes over investments.
We also represent Japanese and foreign companies in dispute resolution not only in domestic Japanese transaction disputes but also in international transaction disputes.
Table of Contents
Litigation
If a dispute cannot be resolved through negotiation or other means, the dispute may be resolved by filing a lawsuit with a summary court or district court, depending on the amount of the claim.
After the complaint is filed with the court, the first oral argument date is held approximately one month later, and the case is heard once every one to two months thereafter.
The court may recommend settlement to the parties at any time, so the parties may be approached to settle at the court’s initiative.
If a settlement cannot be reached, the court will eventually render a judgment.
In most cases, the first hearing is completed within one to one and a half years. However, in cases where there are many issues in dispute, where there are many parties, or where specialized investigations, etc. are required, the proceedings in the first instance (at the district court level) may take longer.
ADR (Alternative Dispute Resolution)
In the case of lawsuits, the proceedings are conducted under strict court procedures based on the Code of Civil Procedure, which may take a long time to resolve or may not allow for flexible resolution.
In such cases, ADR (Alternative Dispute Resolution) may be used as a means of dispute resolution other than litigation.
Traditionally, means of dispute resolution other than litigation have included civil conciliation at court and commercial arbitration at the Japan Commercial Arbitration Association.
In recent years, ADR by the Dispute Resolution Organization of the National Consumer Affairs Center, ADR by the Dispute Resolution Center of each bar association, and ADR at dispute resolution organizations set up by various organizations may also be selected as dispute resolution methods.
International Litigation and Arbitration
When negotiating a dispute with a foreign company, it is necessary to
- confirm the circumstances leading to the dispute,
- examine the contract and various documents, and
- investigate the local legal system of the counterparty.
At our Firm, we have on staff Chinese attorneys who have studied abroad and have a network of law firms in various countries, which enables us to promptly investigate the facts, materials, and laws and regulations.
In the case of international disputes, lack of communication due to differences in language and business practices can also be a cause of disputes.
Our firm has attorneys fluent in foreign languages, Chinese attorneys, and translators who can negotiate and prepare documents on behalf of our clients, which often allows us to resolve disputes without resorting to litigation or other legal means.
However, if the dispute cannot be resolved through negotiation, it must be resolved through legal means. In international transactions, it is common that dispute resolution and governing law clauses are stipulated in contracts.
For example, in the case of a dispute with a Chinese company, arbitration by a Chinese or Japanese arbitration organization may be stipulated, and in such cases, an application for arbitration will be filed with the arbitration organization.
If no dispute resolution method is provided for, it is common to file a lawsuit in the country where the other company is located. However, if the other party has a business office or property in Japan that is the subject of the dispute, it is necessary to consider filing a lawsuit in a Japanese court.
When suing a foreign company outside of Japan, a Japanese attorney cannot directly handle the local court case, so a local attorney must be retained.
On the other hand, local lawyers are not necessarily fluent in Japanese, and even local lawyers who are fluent in Japanese do not necessarily have extensive litigation experience.
We support litigation procedures in foreign countries in cooperation with local law firms that have extensive litigation experience, utilizing the networks we have cultivated over the years.
Our Firm has a wealth of experience in international dispute cases, including among others, negotiation involving accounts receivable claims, patent infringement claims, claims for liability based on non-conformity to contract, and claims for insurance reimbursement.
In addition, in cooperation with local law firms in China, we also have experience in negotiations for collection of accounts receivable of local Japanese companies in China, lawsuits for sales proceeds, lawsuits for service contract proceeds, lawsuits for advertising proceeds, and labor mediations.
