Attorneys Larry & Bryan Assisted U.S. Buyer in Resolving Equipment Procurement Dispute, Recovering Hundreds of Thousands in Compensation

Recently, the legal team led by Larry Zhou, Senior Partner at Landing (Shenzhen) Law Office, successfully assisted a U.S. buyer in resolving a complex dispute involving a Shenzhen supplier and an insurance company.

The U.S. buyer (referred to as the "Client") purchased equipment worth hundreds of thousands of dollars from the Shenzhen supplier (referred to as the "Counterparty"), which operated under multiple entities in Hong Kong and the U.S. 

The Client signed the contract with the Counterparty’s U.S. entity but made payment to its Hong Kong entity, creating intricate contractual relationships. Additionally, the Client paid insurance premiums to the Counterparty to cover the equipment under a transportation policy.

Unfortunately, the equipment, valued at hundreds of thousands of dollars, was nearly completely destroyed in a sudden fire just before reaching its U.S. destination. Since the insurance policy listed the Shenzhen supplier—not the Client—as the insured party, negotiations for compensation between the Client, the Counterparty, and the insurance company stalled. The Counterparty refused to compensate the Client in advance of the insurance payout, leaving the Client unable to recover its substantial losses.

To expedite the recovery process, the Client engaged the legal team of Larry Zhou of Landing (Shenzhen) Law Office, , with the case handled by lawyers Larry Zhou and Bryan Zhang.

After assessing the case, our legal team first sought to communicate with the Counterparty to clarify the intertwined relationships among its entities and evaluate the possibility of litigation against its actual operating entity in China. Simultaneously, our attorneys explored potential settlement options. During negotiations, the Counterparty deliberately avoided addressing corporate affiliations, only agreeing to "assist as much as possible" with the insurance claim while refusing direct compensation.

Given this stance, after conducting a thorough case analysis and fully advising the Client on potential risks, the Client decided to file a lawsuit in the U.S. With our legal team applying strategic pressure on the Counterparty, the case took a significant turn.

Under our law firm’s persistent efforts, the Counterparty and the insurance company agreed to transfer the insurance claim rights to the Client, facilitating the payout. Throughout this process, our legal team provided expert guidance on cargo insurance claims.

Ultimately, the bulk of the Client’s losses were covered by the insurance payout, and the dispute was settled satisfactorily. The Client expressed high praise for our attorneys’ legal expertise and outstanding service.

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