Federal Report Finds That Chinese Businesses Can Be “Almost Impossible” To Pursue Legally

May 12th, 2015


In a May 5, 2015 report, the US-China Economic Security Commission declared that many Chinese companies doing business in the U.S. operate behind a “firewall” in order to avoid the US court process. This report details facts illustrating that despite utilizing American capital markets and having potential defendants located within the United States, Chinese firms often attempt to effectively “hide” behind complex corporate structures, Chinese banking laws, and secrecy regulations to protect their China-based parent companies from U.S. lawsuits. Furthermore, they often claim to be exempt from turning over evidence or even responding to U.S. court documents.

In a trademark infringement case, Gucci America, Inc. v Li, 2011 U.S. Dist. LEXIS 97814 (S.D.N.Y 2011), related to the online sale of counterfeit handbags, Gucci of America tried to get the state-owned Bank of China to produce account records related to the websites and related merchants who were among the many defendants. Claiming that to do so would violate Chinese banking laws, the bank refused.
China and the United States are both signatories of the Hague Convention, which ostensibly “provides U.S. litigants a legal framework for serving papers and obtaining evidence in disputes between U.S. and China-based entities.”

Gathering information on international businesses, attempting legal process service, or successfully executing subpoenas can be staggeringly complex. Such endeavors are often fraught with delays, “red tape” and even willful obfuscation by the involved parties.

“International dealings can be very intricate, and precarious,” says John A. DeMarr, P.I., a licensed California private investigator since 1985, and president of John A. DeMarr Private Investigators, one of the few domestic firms capable of handing such involved scenarios. “Being knowledgeable about the Hague Convention on Service Abroad of Judicial and Extrajudicial Documents in Civil and Commercial Matters, is critical for anyone engaged in international legal and investigative cases,” DeMarr continued.

“Our 30 years of experience makes all the difference, in the service levels and innovative approaches we can offer our clients. Many times our expertise results in a successful outcome where other process servers or private investigation firms have failed.”

John A. DeMarr, a well-known Private Investigator in Huntington Beach, has provided consistently innovative process service and private investigation services over thirty years of experience – always reasonably priced, and always within the bounds of applicable law. Courts have upheld DeMarr’s service techniques, resulting in
judgments, subpoena service and post-judgment enforcement results against deadbeat parents; defendants evading service of process; residents of gated communities; corporations and partnerships; and unfaithful spouses.

John A. DeMarr, Private Investigator’s expertise provides important new tools for creditors owed money; for financial institutions and insurance companies; and, perhaps most importantly, to injured plaintiffs across the globe.

To learn more: http://www.demarr.com. Toll free 877-493-3463.