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Lawyer Larry Zhou Settled Dispute On Behalf Of A Decoration Contractor, Avoiding One Million Loss

Our client has contracted a villa decoration project, and subcontracted part of the decoration project to a contractor, and paid him the corresponding project funds. After the completion of the decoration project, the contractor sued our client and the owner of the villa, demanding that our client and the owner of the villa pay him the project funds of approximately RMB 1 million.

On behalf of our client, we submitted a defense to the court, pointing out that the project settlement sheet submitted by the contractor as evidence was made by himself, without the signatures of our client and the owner of the villa, and could not prove the existence of unpaid project funds.

Later, the court held that because the villa decoration project in this case had no construction permit, and neither our client nor the contractor had the qualifications to contract the decoration project, the decoration contract in this case was invalid.

Therefore, the contractor changed the claim to ask our client and the owner of the villa to compensate the contractor for the loss caused by contracting the decoration project. The reason is that our client cheated the contractor when signing the decoration contract, concealing the fact that the decoration project has no construction permit and our client has no qualification to contract the decoration project.

According to the contractor's updated lawsuit request, we submitted a new defense to the court: 1. our client did not induce the contractor to sign a contract by deception. 2. the contractor has no evidence to prove the loss caused by contracting the decoration project. 3. our client has evidence to prove that he has paid the project funds to the contractor.

In the end, the court accepted our points of view and rejected all the claims of the contractor, and our client did not need to pay any money to the contractor.

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Larry Zhou, Partner

Landing Law Offices China

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