Analysis of the case of representing Xin in suing Gu for a debt dispute

[Lead Counsel: Zhiming Law Firm] I. Case Overview

Plaintiff Xin XX (female) and defendant Gu XX began dating in May 1995 and lived together. Two years later, the defendant became involved with someone else, causing the plaintiff significant physical and emotional distress. To resolve the breakup, the defendant agreed to compensate the plaintiff 200,000 RMB in "youth compensation." As the defendant claimed to lack cash at the time, he wrote an IOU on July 6, 1997, under the pretext of a company project development loan, and affixed the seal of Shenzhen Ba XX Chemical Co., Ltd., a company he had funded and where he served as legal representative and general manager. After the breakup, the plaintiff repeatedly demanded repayment, but the defendant delayed under various pretexts. After multiple unsuccessful attempts to collect the debt, the plaintiff entrusted a lawyer from Guangdong Zhiming Law Firm to pursue the claim legally. After careful consideration, the lawyer acted on the IOU and directly named Gu XX and his company as defendants, filing a lawsuit with the Futian District People's Court on July 2, 1999, solely on the grounds of debts owed by his personally operated enterprise, requesting the court to order defendant Gu XX and Shenzhen Ba XX Chemical Co., Ltd. to repay the 200,000 RMB loan plus statutory interest.

II. Judgment

The first-instance judgment document of the Futian District People's Court of Shenzhen, dated November 16, 1999, states [(1999) Shen Fu Fa Min Chu Zi No. 857]:

The court holds that the defendant Gu XX borrowed money from the plaintiff and affixed the seal of the defendant Ba XX Chemical Co., Ltd. on the IOU. However, the existing evidence cannot confirm that the aforementioned loan is related to the defendant Ba XX Chemical Co., Ltd. Therefore, the debtor in this case is the defendant Gu XX, who shall bear the responsibility for repaying the debt, while the defendant Ba XX Chemical Co., Ltd. shall not bear any liability. Since the parties did not agree on a repayment period or debt interest at the time of the loan, the plaintiff has the right to assert claims against the defendant at any time in accordance with the law, but the plaintiff is not entitled to demand interest on the loan during the borrowing period. However, since the defendant Gu XX still failed to repay the debt after the plaintiff filed the lawsuit, the defendant shall pay interest on the loan accruing after the filing of the lawsuit in accordance with the law. Pursuant to Article 130 of the Civil Procedure Law of the People's Republic of China and Article 88, Paragraph 2, Item 2, and Article 90 of the General Principles of the Civil Law of the People's Republic of China, the judgment is as follows:

I. Defendant Gu XX shall, within ten days from the date this judgment takes legal effect, repay Plaintiff Xin XX the loan of RMB 200,000 and pay interest thereon (interest calculated at the bank's contemporaneous loan interest rate, from July 5, 1999, until the date of repayment as determined by this judgment). In case of delay, the defendant shall pay double the interest on the debt during the period of delayed performance.

2. Reject the plaintiff's claims against Shenzhen BaXX Chemical Co., Ltd.

III. Reject the remaining claims of the plaintiff.

III. Case Analysis

Regarding the circumstances of the case, the plaintiff's representative believes that:

The facts of the loan between the plaintiff and the defendant are clear, and the defendant is obligated to repay.

The plaintiff and the defendant first met in 1995, and their relationship gradually became close. Starting from August 1995, they jointly lent money to Gu XX, accumulating a total of 200,000 yuan. The IOU serves as evidence that the creditor-debtor relationship between the two parties has been established, and the plaintiff has the legal right to demand that the defendant Gu XX repay the loan. Later, their relationship gradually cooled, and the plaintiff repeatedly requested Gu XX to repay the money, but the defendant Gu XX delayed repayment on various pretexts.

(ii) The defendant, Gu XX, has engaged in egregious conduct in evading debt repayment. The court is hereby requested to order compulsory repayment.

The defendant, Gu XX, despite having sufficient financial means to repay the debt, refused to do so and resorted to delaying tactics under various pretexts. What is even more egregious is that from the moment the plaintiff filed the lawsuit with the court, the defendant, Gu XX, engaged in a series of malicious evasive and defiant behaviors: disconnecting the telephone, mobile phone, and pager at his residence, relocating his factory, moving house, and avoiding responding to the lawsuit, thereby seriously obstructing the normal proceedings of the court. To protect the plaintiff's legitimate rights and interests, a property preservation order was applied for during the litigation against the defendant, Gu XX, in respect of a high-end commercial apartment he had purchased at Jingfu Mansion on Binhe Road. After the judgment took legal effect, an application was made to the court for compulsory enforcement through auction in accordance with the law.

In summary, based on the facts and the law, as well as the defendant Gu XX's malicious evasion of debt and avoidance of responding to the lawsuit, the court rendered a judgment in accordance with the law. The plaintiff's representative promptly applied to the court for legal enforcement measures, effectively safeguarding the plaintiff's lawful rights and interests.

(Compiled and commented by Zhang Qingping)

Guangdong Zhiming Law Firm

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