A federal judge in New Orleans ruled last week that a Chinese manufacturer of noxious drywall owes seven Virginia homeowners $2.6 million to completely replace the offending material and all other affected building fixtures. Thousands of similar cases could be on the way. Do Chinese companies need to worry?
As a practical matter, probably not. “In general, collecting on a U.S. judgment [in China] is difficult if not impossible,” says Gordon Gao, a litigation partner in Beijing with the Chinese law firm Fangda Partners. Chinese law, he explains, only permits the enforcement of foreign judgments through bilateral treaties. But China doesn’t actually have any such treaties with other countries.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]