[1] Ya-brand Milk Powder Quality Damage Compensation Case

In July 2004, the legal team of Wang Tengfeng from Guangdong Zhiming Law Firm took on a consumer rights case seeking compensation from the international brand YaMou milk powder: Zhang Mouhui's son, who was less than half a year old, developed severe fever, diarrhea, and other symptoms after being fed YaMou Xi Mouli milk powder. Tests by the Shenzhen Center for Disease Control and Prevention confirmed that the milk powder contained Staphylococcus aureus bacteria, indicating serious quality issues!
After accepting the case, our lawyers thoroughly investigated, understood, and grasped the background of YaMou Pharmaceutical Co., Ltd. and the market share of its YaMou Xi Mouli milk powder in mainland China at the time. They carefully deliberated, thought meticulously, and worded cautiously, drafting a lawyer's letter rich in content and weighty in significance, which was sent to the relevant units of Swiss YaMou Pharmaceutical Co., Ltd.
This lawyer's letter effectively deterred Yamo Pharmaceutical Co., Ltd. and its affiliates. Therefore, a positive response from Yamo was quickly obtained. After several rounds of correspondence and phone communication, a settlement agreement was privately reached: Yamo Pharmaceutical Co., Ltd. (USA) instructed its Chinese agent, Nanjing XXXX Trading Co., Ltd., to voluntarily compensate our client, Zhang Mouhui, for various losses including medical treatment, transportation, lost work time, and mental distress caused by his son's illness from the toxic bacteria-contaminated Xili奶粉, totaling RMB 11,000.
Thus, a civil damage compensation dispute that had been deadlocked after numerous mediation attempts, and a protracted consumer rights protection conflict, was easily resolved. Both parties avoided the burden of tedious litigation, and Zhang Mouhui's family was spared immense mental anguish and material loss.
Art of Representation:
As the saying goes, a tree needs its bark, a person needs their face. Whether in business, officialdom, or daily conduct, everyone desires a good reputation and positive word-of-mouth, not a bad name that invites scorn or criticism. Companies selling products, in particular, rely heavily on a good market reputation and positive word-of-mouth.
In this case, as the victim's legal representatives, we keenly understood that the quality of Yamo milk powder produced by Yamo Pharmaceutical Co., Ltd. (USA), a subsidiary of Swiss Yamo Pharmaceutical Co., Ltd., had already been the subject of numerous negative reports and unfavorable information in newspapers and online media in the year of and before Zhang Mouhui's son's injury. Yamo had conducted extensive "damage control" efforts. The negative social and market impact was gradually fading, and the good image and market credibility of their high-quality milk powder were slowly being restored.
It was at this time that Yamo, like a patient just recovering from illness and still weak, could not and did not want to face further adversity. New controversies over milk powder quality would inevitably cause greater economic losses to the company. Like a camel that could not bear the last straw, they particularly needed a period to completely dispel unfavorable market rumors and recuperate. Thus, they were very afraid of any renewed negative media reports on product quality.
Therefore, based on conclusive evidence from a legally authorized testing agency that harmful Staphylococcus aureus was found in Y*mou Xi*mou Li milk powder, I employed artistic dispute resolution tactics and psychological attack methods to exert extra-legal pressure on the Y*mou side, engaging in reasoned persuasion. Instead of opting for direct litigation, I chose to send a lawyer's letter as a means of negotiation.
In this "Y*mou Milk Powder Compensation Case," as the attorney, we appropriately selected and applied the "Beat the Grass to Startle the Snake" strategy from the Thirty-Six Stratagems of military tactics.
At the outset of representing "Zhang Mouhui in the Y*mou Milk Powder Rights Protection Case," we conducted a detailed analysis and concluded that:
As an internationally renowned brand, Y*mou milk powder's products are sold across the global market, especially in mainland China, where it holds a significant market share and enjoys a strong brand reputation.
If the client, Zhang Mouhui, were to expose the quality defects of its milk powder to several influential domestic media outlets, it would severely damage the brand's hard-earned long-term reputation, inevitably leading to a sharp decline in its competitiveness in the mainland Chinese market and causing substantial economic losses... I intended to stir up the "grass" of public opinion!
Thus, we used this as an "attack point" to remind and warn the Y*mou milk powder side of this vulnerability and pain point, urging them not to continue ignoring my client Zhang Mouhui's compensation demands. Otherwise, my client Zhang Mouhui would be forced to publicize the fact that his son developed a fever and diarrhea after being fed Y*mou Xi*mou Li milk powder through various media and online platforms, sparking public condemnation of the unethical international brand and garnering support for the victim...
Our lawyer's reminders and warnings greatly shook the Yacou dairy side, causing them to hesitate. They dared neither to continue dragging the matter out nor to face legal battle in court, fearing that public opinion's impact on consumers would lead to greater economic losses. In the end, they had no choice but to reluctantly seek a private settlement. This is another classic case of achieving great success by skillfully using the tactic of "beating the grass to startle the snake"...
This lawyer's letter was carefully worded and precisely expressed, emphasizing that Yacou Pharmaceutical Co., Ltd., as an international enterprise, and Yacou milk powder, as a brand in global milk powder production and marketing, have far more at stake in terms of business reputation than the minor compensation required in this dispute. It hoped that the Yacou side would recognize the relative importance and make a wise choice. Otherwise, as the attorney entrusted by the victim's father, Zhang Mouhui, we would not only file a rights protection lawsuit against Yacou Pharmaceutical Co., Ltd. in Switzerland and its affiliates according to law but also re-expose evidence of Yacou milk powder's poor quality and contamination with Staphylococcus aureus to various Chinese media. This would inevitably cause severe damage to Yacou milk powder's brand image and significantly impact its market sales. Such consequences would result in far greater economic losses for the Yacou side than the compensation amount due in this dispute...
Our lawyer's psychological deterrence and analysis of interests indeed moved and persuaded the Yacou side. Through the coordination of their attorney, the Yacou side ultimately made the wise choice to sacrifice small gains for larger ones, fully satisfying the excessive claims and settlement conditions proposed by our client, Zhang Mouhui, which exceeded legal standards and scope.
Thus, a protracted and long-stalled dispute between a consumer and a business was quickly and thoroughly resolved through our artistic negotiation tactics.
Lessons from the case:
If this case had been handled through conventional litigation methods,
Since there are shopping receipts for the family of Zhang Mouhui purchasing Yaximoxili milk powder, a legal test report confirming that Yaximoxili milk powder contains Staphylococcus aureus toxin, and solid evidence such as the fact that the infant fell ill and required treatment after consuming the milk powder, it is sufficient to prove that Yaximoxili milk powder has quality defects. Moreover, given that the victim's representative, Zhang Mouhui, had engaged in multiple rounds of negotiations with the merchant through several institutions, including the Shenzhen Consumer Council, over half a year without resolving the issue, most lawyers would naturally choose to proceed directly with legal action. To be honest, this is a logical, step-by-step, and reasonable choice. For most lawyers, handling it this way is neither blameworthy nor a major mistake.
However, if this consumer rights dispute were to be handled through conventional litigation with normal thinking, the child's symptoms of fever and diarrhea caused by consuming substandard milk powder would hardly be considered particularly severe or difficult to treat. For a minor viral infection, even compensation would only be awarded according to legal standards and scope.
Then, if the judge rules according to the law, the compensation would at most cover the loss of over 100 yuan for the milk powder, over 200 yuan for medical expenses, plus appropriate transportation costs and lost wages from维权 efforts, totaling no more than one or two thousand yuan. Such a minor illness would never qualify for compensation for mental distress or psychological suffering beyond the legal scope, as the extent of damage is difficult to define.
In other words, if this consumer rights dispute were to go through court trial and judgment, the victim, Zhang Mouhui, would never be able to obtain economic compensation exceeding 10,000 yuan.
Moreover, under normal circumstances, filing a consumer rights lawsuit through conventional litigation methods, from filing to trial and judgment, if the first and second instance legal procedures are completed, would inevitably take a long time. Regardless of the outcome, the litigation process alone would take at least half a year to a year. During this time, the consumer victim, Zhang Mouhui, and his family, as the plaintiffs, would inevitably waste time and energy, undoubtedly increasing their mental suffering, emotional torment, and the huge adverse outcome of failing to obtain satisfactory material compensation. A comparison of the two makes it clear, highlighting the wonder and beauty of my artistic dispute resolution technique.
However, after grasping the market operation status of Yaximoxili milk powder and probing the operational weaknesses of Yaximoxili Pharmaceutical Co., Ltd., we used a lawyer's letter to stir up trouble, attacking their psychological vulnerabilities, prompting them to actively and proactively respond to our compensation demands, and earnestly negotiate settlement terms and compensation amounts with us. As a result, we not only spared Yaximoxili from the potential huge business losses caused by greater market reputation damage from litigation but also saved our client, Zhang Mouhui, from the long-term litigation burden, trouble, and greater mental suffering, as well as the unattainable compensation target losses determined by law, avoiding the unwise outcome of "killing 10,000 enemies while losing 8,000 of our own"!
By skillfully applying strategic tactics, we cleverly forced a seemingly powerful merchant to voluntarily compensate our client, Zhang Mouhui, a harmed consumer, with 11,000 yuan for the damage caused to his child by bacterial contamination—exceeding the "legal" standards and scope of economic compensation. This not only directly recovered all material losses from the purchase of milk powder and the child's illness, but also compensated and comforted the mental anguish suffered by Zhang Mouhui's family due to the infant's hospitalization from infection.
As the old saying goes, harmony brings wealth. Most merchants adhere to this ancient maxim and are unwilling to go to court with harmed consumers. Spending a small amount of money to avoid huge economic losses—why not do it? Therefore, although this case may not seem particularly significant on the surface, its reference value in resolving disputes easily and efficiently outside the courtroom through artistic litigation techniques should not be underestimated! The artistic technique of "beating the grass to startle the snake," where the weaker side outwits the stronger in a game of strategy, is truly a superior approach. When applied properly, it yields excellent results.
Attachment: Relevant materials for the Yamo Milk Powder Mediation Case






Excerpted from: Wang Tengfeng's work "Lawyer's Strategic Victory—Analysis of Classic Cases in Artistic Litigation."