David Lee Solved Client’s Problem through International Cooperation----Criminal Risks of Export Enterprises

In May 2017, one Jiangsu enterprise exported two batches of chemical products to Italy, payment by usance letter of credit. After receipt of the goods, the Italian buyer was not willing to pay due to claimed quality problems. In the absence of consultation with the seller, the Italian buyer applied directly to the Italian local court for suspension of payment of L/C and reported the case to the Public Prosecutor for further investigation in the criminal responsibility of the relevant personnel of the Jiangsu seller. Consequently, the Public Prosecutor informed the issuing bank to stop payment of L/C.


In August of the same year, the Jiangsu enterprise consulted David Lee how to deal with it. After careful analysis, David Lee concluded that even if there had a quality problem, it could be a civil claim and would not lead to criminal offenses. Even if there had been a quality dispute, it would not affect the payment of L/C. Thus, David Lee proposed a strong support in responding. Entrusted by the Jiangsu enterprise, David Lee cooperated with the local lawyers in Italy. Firstly, he learned the situation of the L/C from the issuing bank and the court accepted David Lee’s opinion on the basis of discrepancies in the service procedure. Finally, the two cases brought by the Italian buyer were dismissed. Be that as it may, the Italian buyer was frustrated and choose to settle the dispute through negotiation. Led by David Lee, the concerned parties reached a settlement agreement in October 2017.


Thanks to the participation of David Lee, the dispute was settled and the client was very satisfied with the result.