Can civil lawsuits still be fought after criminal filing: New interpretation of six situations

Where did it get stuck in the past

A common scenario is when there are problems with transactions such as buying, selling, borrowing, and guaranteeing. As soon as a company files a civil lawsuit, the other party suddenly presents a criminal filing receipt, claiming that "this case is suspected of a crime and should be punished first before the people" and requesting a suspension of the trial. One case hanging one case, waiting for a year or so, the time limit for creditor's rights, the disposal of collateral, and the company's cash flow are all consumed in it. In the past, such judgment criteria were scattered in notifications and individual case responses, and the scales mastered by different regions were not consistent.

How to define the new rules

This judicial interpretation consists of 24 articles and is the first judicial interpretation since 1998 that specifically regulates the cross disciplinary procedures between civil and criminal law. The core consists of three sentences:

• Look at the same fact.Only when civil cases and criminal cases are based on the same facts can we talk about punishment before the people; If the facts are not the same, civil cases should be tried at the appropriate time.
• Criminal contracts are not necessarily invalid.If one party or related personnel to the contract is suspected of committing a crime, it does not mean that the contract is invalid; The validity of the contract shall be judged according to the rules of the contract itself. This is particularly important for enterprises engaged in buying and selling, lending, and providing guarantees.
• Six types of situations should be accepted.The judicial interpretation specifies six types of civil cases that should be accepted through enumeration. What category does your case belong to? It needs to be compared item by item based on the facts. This is precisely the part that deserves to be judged by a lawyer.

Three steps that companies should take now

• Don't rush to withdraw the lawsuit.The other party presenting a criminal filing receipt does not mean that your civil lawsuit must be suspended. First, make a "same fact" judgment: is it the same transaction, the same batch of funds, or is it just a matter of the parties involved?
• Cut open the 'facts' to see.Each stage of the transaction chain, including signing, performance, guarantee, and payment collection, may constitute different facts. If it can be opened, civil procedures can be upheld.
• Don't be idle on the criminal side either.If it is the case you reported, the pace of criminal proceedings will directly affect the trial arrangement of civil cases, and there must be someone in the same field to coordinate the two lines. This is precisely where the handling of criminal civil cross disciplinary cases tests the investigators the most.

Cross disciplinary criminal and civil affairs is one of the nine business segments of our institution. We conduct both criminal defense and civil and commercial litigation, and the judgment of whether to suspend requires the presence of two perspectives simultaneously. Only understanding civil and commercial matters can easily be intimidated by a filing receipt; Only understanding criminal matters can easily overlook the passing opportunities in civil procedures. If your case is stuck in this position, please feel free to bring the filing materials and contract for a discussion. Contact us: Room 1802, Building A, Xintian Century Business Center, Shixia North Second Street, Futian District, Shenzhen. Phone: 0755-25986969.

This article is written by the director of our firm and the head of the law firmShen Jinlong Lawyer(Practicing license number 1440320410315584) Signed and published.