Dacheng Represents Louis Dreyfus Beijing Office in Settling Storage Fetching Dispute

Dacheng senior partner Qian Hongji, acting as legal counsel for Louis Dreyfus Commodities (Beijing) Trading Co., Ltd. (hereinafter referred to as “Louis Dreyfus Beijing”), recently coordinated the settlement of a dispute his client had encountered in Shaanxi. With the help of Dacheng’s global legal service network, Mr. Qian entrusted Zhao Wenbin, partner from Dacheng’s Xi’an office and director of general corporate matter practice, to represent his client in a storage fetching dispute against Shaanxi Hengxing Fruit Juice Co., Ltd.(“Shaanxi Hengxing”) and Chunhua Hengxing Fruit Juice Co.,Ltd.(Chunhua Hengxing), a subsidiary of Shaanxi Hengxing. Within ten days, attorney Zhao Wenbin managed to file the case, acquire advance execution and settle the case decisively and efficiently, solving a gridlock that lasted a few months and saving huge amounts of potential economic losses for the client.

Louis Dreyfus is a Global 500 multinational group founded in 1851 by a Frenchman named Leopold Louis-Dreyfus in Paris, France which has pioneered and developed Europe’s grain export and trading. Louis Dreyfus is the world’s No.3 and France’s No.1 grain exporter and the most important grain exporter to Russia.

In July 2011, Louis Dreyfus Beijing, who had previously commissioned Sinotrans Co., Ltd. and Sinotrans Shaanxi Shaopingdian Storage and Transportation Trade Co. to store concentrated apple juice at the factory site of Chunhua Hengxing, had a dispute with Shaanxi Hengxing over the fetching of the juice. Shaanxi Hengxing ordered its subsidiary to stop Louis Dreyfus Beijing from fetching the remaining hundred tons of juice. Such an order would seriously impact the timely sales of the juice in peak seasons as well as its price and quality. After four months of fruitless negotiation, the two sides fell into a standoff.

Having understood the situation, Dacheng’s Beijing-based attorney Qian Hongji referred his client to Xi’an-based attorney Zhao Wenbin, who, on November 17 2011, after communication with the client and investigation at the site of storage, suggested filing a lawsuit against Shaanxi Hengxing and applying to court for advance execution so as to immediately take the juice out. Because Shaanxi Hengxing was an locally influential enterprise and it might therefore difficult to press the case for advance execution, attorney Zhao made detailed plans before filing the case.

On November 21 2011, attorney Zhao brought a civil complaint to a court on behalf of Louis Dreyfus Beijing and applied at the same time for advance execution. After a series of legal procedures and coordination work, the advance execution was carried out, with Louis Dreyfus taking out all remaining goods before 24 o’clock of November 23, the third day the case was filed. Later, attorney Zhao, by communicating and working with all other parties, made the opposing sides reach a settlement marked by a paper of civil mediation.

This case fully illustrates the importance and usefulness of Dacheng’s global legal service network in terms of facilitating interaction between Dacheng headquarters and offices elsewhere. This is particularly beneficial for clients. Dacheng’s service this time has been highly recognized and appreciated by the client. It will herald more business with Global 500 companies.