Choose reconciliation or responding to the lawsuit? What needs to be considered in the end is all the expenses and the time spent.

About reconciliation

1. There is no need to settle the shop with less frozen funds (if the shop is not needed).

First of all, it needs to be clear that under normal circumstances, the minimum settlement amount of each case is between 1,500 and 2,000, in addition to the lawyer’s fees. Therefore, if the frozen amount is small, it is not recommended to settle. Refusing to settle, if the judgment is made by default after about three months, the law firm will take a long time to get the judgment amount.

However, if you don’t want to give up the store, you must accept the settlement. Take GBC Law Firm as an example, they will take a second freeze to urge you to make up the judgment money, and will transfer all the funds in your account (except AliExpress), so if you want to continue to operate, you need to settle as soon as possible, otherwise you will only lose more. Finally, it is recommended to analyze the specific problems, weigh the pros and cons, and reduce the losses as much as possible.

2. If the frozen amount is large, it is suggested to move a settlement or respond to the lawsuit.

If the frozen amount is large, the settlement money will be determined according to the original proportion, but it will be passive, which is lower than giving up the loss completely. You can also choose to respond to the lawsuit. According to the case analysis, individual special cases can also achieve zero compensation or even let the plaintiff compensate the seller for the loss.

3. Can the default judgment be reconciled in the absence?

GBC Law Firm: In general, the law firm will accept settlement no matter which procedure it is in, but the difference is the amount of settlement money. For the merchants who have been frozen for the second time, the settlement money is determined according to all the funds in the frozen account of the merchants. If there is no second freeze, then the settlement fund is determined according to the initial frozen funds. From this point of view, it is recommended that you weigh and make choices as soon as possible, make full use of time and information, and minimize losses. If you choose reconciliation, you should negotiate as soon as possible, and if you give up reconciliation, you should be prepared to close the store as soon as possible.

Keith Law Firm: The law firm accepts the settlement within a certain time frame, usually within three months after the default judgment. However, in addition to reconciliation, you can also negotiate with it. As long as you follow the legal procedures correctly, you can ensure the security of the account to a certain extent.

SMG Law Firm: The law firm accepts the settlement request after the judgment, but the settlement fee will be much higher than the settlement fee previously determined.

4. Detailed and comprehensive reconciliation process.

Under normal circumstances, after the settlement negotiation between the seller and the lawyer is agreed, the settlement will be handed over to the defendant seller or his lawyer by the law firm, and then the defendant seller needs to sign and return it to the plaintiff’s law firm, and the plaintiff’s law firm also needs to sign and return it. Then, after the defendant seller pays the settlement money, the plaintiff needs to hand in the withdrawal letter to the court to withdraw the lawsuit, and finally the withdrawal letter will be sent to the defendant, and the settlement is completed.

5. How to calculate the success of reconciliation?

Successful settlement means that all two documents are sent to the merchant, namely the settlement letter and the withdrawal letter.

The settlement letter needs to be signed by both parties, and the withdrawal letter needs to be signed by the court Only after these two documents are issued, can subsequent businesses with problems have a legal basis to request a complaint, such as inconsistency before and after the settlement, second freezing, re-prosecution, etc., so the settlement is truly successful if both documents are issued.

6. Settlement cycles and account safety periods of different law firms?

According to the handling of previous cases, the settlement cycle is the shortest for Keith Law Firm and the longest for GBC Law Firm (with more GBC cases).

Generally, the security period of the account is after the successful signing of the settlement agreement. If there is any inconsistency between the settlement funds after the signing of the agreement, it can be claimed back through legal procedures. However, the fixed legal procedures will continue in the later period. Here, I remind you that you must ask the plaintiff’s lawyer to provide the signing documents, because this can appeal when problems arise.

About responding to the lawsuit

Responding to a lawsuit in the United States is similar to domestic litigation, and the specific process is also very simple. In accordance with legal procedures, the plaintiff’s lawyer submits the corresponding legal documents and appears in court to defend. However, in the United States, when dealing with cross-border infringement cases, most sellers will adopt a settlement method instead of responding. The main reason is that the cost of responding to the lawsuit is very high, and most American lawyers charge on an hourly basis (some of them are charged according to the proportion of unfrozen funds), so the cost of responding to the lawsuit in court may be higher than that of settlement. Finally, whether it is necessary to answer the lawsuit or not depends on the final degree of loss. Here, businesses and lawyers need to analyze their own situation in all aspects, reduce their losses as much as possible, and take measures that are most beneficial to them.

Reduce loss

The premise of reducing losses is to have a high degree of risk awareness and pay close attention to the recent handling of various related cases. If you find that your store is operating abnormally or your products may have been fished, you should keep calm and reduce your own things if you want to reduce your losses. The most important thing is to reduce the fund balance of the account as much as possible, so that it can be mentioned every day, because there is a time difference between the prosecution of the case and the freezing of the account, and taking such measures within this time difference can reduce a lot of losses.

Finally, in any case, after being frozen, you need to collect and sort out your own infringement/litigation documents to consider whether to settle or respond to the lawsuit. The ultimate goal is to reduce the loss (compensation+attorney’s fees+processing time during the period). It is recommended not to unilaterally judge whether to choose to settle or respond to the lawsuit. Here, you need to comprehensively evaluate whether it is true infringement/infringement sales/total cost of responding to the lawsuit and total cost of settlement/time spent, and you need to contact professional lawyers in this field for details.