Referring an English law matter to us: a guide for Chinese law firms

Chinese law firms can refer English law and English court matters to Duan & Duan UK LLP directly. Send us the parties' names first so we can run a conflict check, then a short summary, any deadlines and the key documents. We confirm scope and fees in writing before work begins, and we work with the referring firm and the client in English and Chinese.

In short

• Refer early, especially if English court papers have been served: time limits run from service.
• Send the names of all parties first. We run a conflict check before we receive confidential detail.
• We confirm who the client is, the scope of work and the fee basis in writing before we start.
• The referring firm can continue to advise on Chinese law and stay involved, as agreed with the client.
• We work in Mandarin and English, with Chinese and English documents.

When is English law or the English court engaged?

A Chinese client's matter usually needs an English lawyer where:

• a contract is governed by English law, or provides for the English courts or London arbitration;
• the counterparty, or its assets, are in England and Wales;
• the client has been served with an English claim form (see what to do in the first 14 days);
• a judgment from mainland China or the Hong Kong SAR is to be enforced in England (see our guides to enforcing Chinese judgments and Hong Kong judgments);
• assets in England need to be frozen or traced; or
• the client needs advice on an English company, shareholder dispute, property or employment issue.

If you are unsure whether English law is engaged, send us a short description and we will tell you.

What should you send us first?

Step 1: names for the conflict check. The full names of the client, the counterparty and any related companies or individuals, in Chinese and in English or pinyin where available. We must be able to act without a conflict of interest, and we confirm the position before you send confidential detail.

Step 2: a short summary. One or two pages covering what happened, what the client wants to achieve, the amount in dispute, and where the counterparty and its assets are.

Step 3: deadlines. The date any English court document was served, any limitation concern, any hearing date, and any contractual deadline.

Step 4: key documents. The contract, the main correspondence, and any judgment, award or court papers. Chinese-language documents are fine at this stage.

How is the engagement set up?

Once the conflict check is clear, we send an engagement letter setting out:

• who our client is (normally the end client);
• the scope of the work, and what is excluded;
• who will do the work, and who supervises it;
• the fee basis and an estimate; and
• how we will communicate with the client and with the referring firm.

Before we act, we carry out anti-money-laundering (AML) and know-your-client (KYC) identity checks on the client, as UK law requires. For a company this usually includes its ownership structure. Having the client's documents ready shortens this step.

How do we work with the referring firm?

Referred matters usually run on a co-counsel basis. We advise on English law and conduct any English proceedings; the referring firm advises on Chinese law and on the client's position in mainland China. Where a matter involves assets or proceedings in both jurisdictions, we agree a division of work at the start so that the client does not pay twice for the same task.

On communication, we agree with the client and the referring firm who receives advice and how. Many clients prefer the referring firm to be copied on all correspondence; others want us to deal with their in-house team directly. Either works, provided it is agreed in writing.

What about language?

We work in English and Chinese. We can take instructions in Mandarin, explain English procedure to the client in Chinese, and review Chinese documents. The English court works in English. A witness who is not fluent in English gives a witness statement in Chinese, with an English translation, and Chinese documents relied on in court are translated.

How are fees handled?

We confirm our fee basis in writing before work begins. For litigation, we give estimates for each stage (for example, pre-action correspondence, issuing the claim, a summary judgment application) so that the client can decide how far to go. We also explain the English rule that the losing party is usually ordered to pay part of the winner's costs, and what that means for the client's budget and risk.

We do not pay referral fees. Where the referring firm has incurred time in onboarding the client, attending meetings or preparing documents to brief us, that time will be compensated, on terms agreed in writing in advance and disclosed to the client.

How can Duan & Duan UK LLP help?

Duan & Duan UK LLP is a member of the Duan & Duan international network and is regulated by the Solicitors Regulation Authority. We act for Chinese businesses and individuals in English courts and arbitrations, and on English corporate, property and regulatory matters. Our UK–China cross-border disputes page describes the work we do.

We do not charge for reviewing a new enquiry, and we will confirm any fee before work begins. Contact us or email office@duanduanuk.com with the parties' names so that we can start the conflict check.

This article is general information, not legal advice on any particular matter.

Frequently asked questions

When does a Chinese client's matter need an English lawyer?

Typically when a contract is governed by English law or gives jurisdiction to the English courts, when the counterparty or its assets are in England and Wales, when the client has been served with English proceedings, when a judgment or arbitral award from mainland China or the Hong Kong SAR is to be enforced in England, or when the client needs advice on an English company, property or regulatory issue.

What should a referring firm send first?

The names of all parties, including related companies, so that we can run a conflict check; a short summary of the dispute or transaction; any deadlines, including dates of service of court documents; and the key documents, such as the contract, correspondence and any judgment or award. Detailed confidential information should follow once the conflict check is clear.

Who is the client when a Chinese law firm refers a matter?

Normally the end client is our client, and we confirm that in writing at the outset, with the scope of work and the fee basis. The referring firm can continue to advise the client on Chinese law and take part in communications, as agreed with the client.

Can Duan & Duan UK LLP work in Chinese?

Yes. We work in English and Chinese, so we can speak directly with the client and with the referring firm in Mandarin, and review Chinese-language documents. The English court works in English: a witness who is not fluent in English gives a statement in Chinese with an English translation.

How are fees handled on a referred matter?

We confirm our fee basis in writing before work begins, and give estimates for each stage of litigation. We do not charge for reviewing a new enquiry. We do not pay referral fees. Where the referring firm has incurred time in onboarding the client, attending meetings or preparing documents to brief us, that time will be compensated, on terms agreed in writing in advance and disclosed to the client.