CHINA Law and Practice Contributed by: Chuanhong Long, Ji Liu and Xiao Jin, CCPIT Patent and Trademark Law Office
2.7 Time Limit for Obtaining Third-Party Funding There is no applicable information in this juris- diction.
the facts giving rise to its claim. The limitation period can be interrupted due to: • petitions from obligees requesting that obli- gors meet obligations; • negotiation between the parties over the dispute; and • legal action or arbitration filed due to the dispute. If the limitation period is interrupted, it restarts, affording the claimant an additional three years from the day of such interruption, such as when an obligee demands payment of a debt from an obligor. In addition to the interruption, the limitation peri- od can be suspended by circumstances that are essentially out of the parties’ control. Suspen- sion can only occur during the last six months of the limitation period. A typical instance where suspension may apply is during force majeure events, like the disruptions caused by the COV- ID-19 pandemic. In such scenarios, the party may receive an extension of six months from the time the suspending event ceases to apply. However, irrespective of any interruptions or sus- pensions, the courts will not entertain claims if the lawsuit is filed twenty years after the day the limitation period started, no matter how many times the limitation period was interrupted or suspended. 3.3 Jurisdictional Requirements for a Defendant In order to determine jurisdiction, people can usually try the following three-step test: • determining whether the case is under exclu- sive jurisdiction;
3. Initiating a Lawsuit 3.1 Rules on Pre-action Conduct
Generally speaking, there is no pre-action requirement imposed by the court. For example, to proceed with civil litigation, a plaintiff must meet the following requirements: • The individual or entity initiating the lawsuit must have the legal standing to do so. • There must be a clearly identifiable party or parties against whom the action is brought. • The plaintiff is required to present specific claims, supported by facts and legal grounds, to substantiate the lawsuit. • The case must fall within the realm of civil matters that the people’s court is authorised to hear, and it must be filed in the correct jurisdiction. Failing to meet these requirements will lead to the case’s dismissal. However, labour disputes are an exception. In such cases, the law mandates that the involved parties – employers and employees – must first seek arbitration. The court will not accept legal actions pertaining to labour disputes that have not undergone this compulsory arbitration step. 3.2 Statutes of Limitations Under the Civil Code, the limitation period for civil suits is three years for most cases. The limitation period starts running from the day when the plaintiff knows or should have known
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