How to find property clues if the execution is not in place after the judgment takes effect

In commercial disputes, there is often a distance between judgment and enforcement. Many business owners have spent several years going through the litigation process and obtaining effective judgments, only to find that the other party no longer has any enforceable property under their name. Shenzhen lawyer Zhao Shangxiao has been practicing for 14 years, mainly dealing with difficult disputes in civil and commercial matters. His proposal of "integrated litigation and enforcement" means filling in the gap in advance: preparing according to the standards of execution when filing a lawsuit. Difficulty in execution is not an isolated phenomenon, especially in cases involving large assets.

1、 Three key issues of inadequate execution

Many parties believe that obtaining a judgment means the end. But litigation is only the first step. The three common questions are:

• No preservation was done during the litigation stage.The other party transferred property during the litigation period, but by the time of execution, there was no property available for inspection.
• The program connection is disjointed.The second instance and retrial have their own deadlines, and missing the window makes it difficult to correct.
• Lack of clue investigation during the execution phase.The case has reached its final stage, and the parties involved do not know what to do.

Legally speaking, this involves the provisions of the Civil Procedure Law on property preservation: for cases where the judgment may be difficult to enforce due to the actions of one party or other reasons, the court may, upon application, rule to preserve the property of the other party. However, in practice, many parties do not consider enforcement until the judgment takes effect, at which point bank deposits, real estate, and equity have already been transferred or concealed, and court enforcement is in a passive position.

There is also a situation of "final execution", which means that the execution procedure is terminated due to the debtor having no property available for execution. This does not mean the extinction of the creditor's rights, but requires the rights holder to continuously provide property clues and apply for resumption of execution at any time. Many people mistakenly believe that there is no chance after the final investment, but in fact, the initiative still lies in the hands of creditors.

2、 I lost the first trial, is there still room for the second trial

Losing a large commercial dispute in the first instance does not mean it is final. But the proportion of second instance verdicts changed is not high, and the threshold for filing retrial cases is also high, which is an objective situation. What needs to be done is to sort out the first instance documents, court transcripts, and evidence directory system, and screen three types of issues in a hierarchical manner: whether there are omissions in facts, whether there are illegal procedures, and whether there are errors in the application of laws. After screening, decide whether to appeal or not to avoid a meaningless second trial for the sake of emotions.

Taking the determination of contract validity as an example, if the first instance ignores the special business model or transaction habits of the industry, the factual determination may deviate. According to the Civil Code, civil legal acts that violate mandatory provisions of laws and administrative regulations are invalid, except where such mandatory provisions do not result in invalidity. In practice, there are differences in the identification of "mandatory provisions" by courts, which need to be demonstrated through judicial interpretations and case searches.

The application for retrial should also be based on legal reasons, such as new evidence that is sufficient to overturn the original judgment, or the lack of evidence to prove the basic facts identified in the original judgment. General appeals are meaningless. For the parties involved, after losing the first instance, they should evaluate the space for the second instance as soon as possible. The appeal period for civil judgments is fifteen days, after which there will be no more. At the same time, it is necessary to simultaneously investigate the other party's property clues to prevent assets from being transferred during the second instance.

3、 What else can be done after the final version

The difficulty in execution lies in discovering assets. The executed party may conceal assets through affiliated companies, proxy holders, anonymous shareholders, and other means. The tasks that can be done in practice include:

• Apply to the court to retrieve the bank statements, real estate registration, and industrial and commercial documents of the executed party;
• Verify property rights such as equity, accounts receivable, and intellectual property;
• Conduct inspections on new assets, such as online accounts, cloud devices, and platform stores;
• When the conditions are met, apply for the addition of a debtor or file a subrogation lawsuit.

Regarding the addition of parties, the "Provisions of the Supreme People's Court on Several Issues Concerning the Change and Addition of Parties in Civil Enforcement" specifies the situations in which additional parties can be added, such as the contributors and partners of sole proprietorships and partnerships. Regarding the right of subrogation, the Civil Code stipulates that if the debtor fails to exercise their creditor's rights or related subordinate rights, which affects the realization of the creditor's due rights, the creditor may request to exercise subrogation in their own name. If the person subject to enforcement has matured debt but does not claim it, this path can be taken.

The last thing to do in the face of this final case is to wait. Regularly communicating with lawyers and providing timely clues about property changes that you are aware of is often one step faster than the court's investigation and control system.

4、 Full cycle arrangement for disputes over large assets

Large asset disputes often involve multiple procedures: litigation, arbitration, enforcement, and even bankruptcy distribution. Lawyer Zhao Shangxiao's suggestion is to "start with the end" - plan the litigation strategy and preservation plan together from the beginning of the commission.

Specifically, there are three steps: first, when choosing a lawyer, check if there is experience in similar difficult cases, especially in the ability to correct errors in second instance and retrial; Secondly, actively apply for preservation in litigation, freeze accounts, seize real estate or equity; Thirdly, immediately apply for execution after the judgment takes effect, cooperate in investigating clues, and if necessary, raise objections to execution or file a subrogation lawsuit.

Guangdong Zhiming Law Firm has long focused on the field of large asset disputes and can provide solutions for the connection between litigation and enforcement. If you are facing a similar dispute, it is recommended to evaluate the path as soon as possible and not leave the judgment in a drawer. The law does not protect those who sleep on their rights, and this statement is most evident during the execution phase.