Meaning
A statutory regulation issued by the State Council of the PRC sets the schedules and rules for court fees in civil, administrative, intellectual property or labor lawsuits. The application of the PRC measures for litigation costs ensures that the financial requirements of filing a lawsuit are uniform across all provinces.
Fee Calculation
The filing fee for a civil dispute is calculated on a sliding scale based on the monetary value of the claim. This scale reduces the percentage charged as the total value of the lawsuit increases, making high-value corporate claims relatively less expensive to file.
Cost Allocation
The court awards the responsibility for court fees to the losing party in the final judgment. If the court rules partially in favor of both parties, the fees are divided proportionally between them according to their share of the liability.
Financial Strategy
Plaintiff companies must evaluate these potential court fees before initiating a lawsuit to ensure the recovery amount justifies the upfront cost. Since fees are paid to the court upon filing and only recovered after a final judgment, a company must maintain sufficient cash reserves to fund the initiation of the legal action. This rule keeps frivolous suits to a minimum.
