Consultation on initiating legal proceedings against enterprises in accordance with the law

In the process of executing transactions, business cooperation, or civil and commercial obligations, many individuals and organizations encounter conflicts and disputes with enterprises that cannot be resolved through negotiation or mediation settlement. However, in order to initiate legal proceedings against an enterprise in compliance with the law, the claimant must clearly understand issues relating to jurisdiction, litigation dossiers, legal procedures, and other relevant matters. In the article below, NPLaw provides detailed consultation on initiating lawsuits against enterprises in accordance with the current laws of Vietnam.

I. The need for consultation on initiating lawsuits against enterprises

1. What are the common reasons for seeking consultation before initiating a lawsuit against an enterprise?

Before proceeding with litigation against an enterprise, legal consultation is essential for several important reasons. Some common reasons include:

• Determining the competent Court: Certain cases fall under the jurisdiction of the district-level People’s Courts, while others must be filed with the provincial-level People’s Courts (for example, disputes involving foreign elements or significant value).
• Determining the statute of limitations: The statute of limitations for initiating civil and commercial disputes is generally three years; however, in some cases it may be one year or not applicable at all (for example, certain disputes relating to intellectual property rights or labor matters).
• Drafting the petition and preparing legal evidence: The petition must be prepared in the correct form and contain all required contents in accordance with the Civil Procedure Code 2015. Claimants must clearly identify lawful evidence and avoid subjective arguments or unsupported claims.
• Assessing the likelihood of success and legal risks: Legal consultation assists in evaluating the legality of the claims, the ability to prove them, and forecasting possible outcomes of the case.
• Considering alternative dispute resolution methods: In many cases, after receiving consultation, parties choose for negotiation, mediation, or administrative complaints instead of litigation, in order to save time and costs.

2. How do the timeframe and costs for consultation on initiating lawsuits against enterprises usually vary?

Time of consultation:

• For simple cases (for example, contract payment disputes or overdue debts), consultation may be completed within 1–3 working days.
• For complex cases (such as those involving investment, shareholding, or violations of competition law), consultation may take from 3–10 days or longer, depending on evidence investigation and dossier preparation.

Consultation costs depend on:

• The nature and level of complexity of the case;
• The experience of the lawyer or law-practicing organization;
• The geographical area (fees in Ho Chi Minh City and Hanoi are generally higher than in other provinces).

II. Legal provisions on consultation for initiating lawsuits against enterprises

1. What is consultation on initiating lawsuits against enterprises?

Consultation on initiating lawsuits against enterprises is a legal support provided by lawyers, law-practicing organizations, or legal experts to guide individuals and organizations in fully implementing procedures prescribed by law. Such support is to initiate legal proceedings against an enterprise before a court or a competent authority when a dispute arises or lawful rights and interests are infringed.

The consultation typically includes:

• Determining legal grounds and conditions for initiating a lawsuit;
• Guiding the preparation of dossiers, documents, and evidence;
• Drafting the petition and determining court jurisdiction;
• Analyzing legal risks, statutes of limitations, and prospects for resolution;
• Advising on alternatives to litigation (such as negotiation, mediation, or administrative complaints).

2. Why is consultation on initiating lawsuits against enterprises necessary?

Consultation on litigation is necessary and highly practical because it:

• Ensures compliance with proper legal procedures and formalities, thereby avoiding mistakes in form, jurisdiction, or limitation status that may result in rejection or dismissal of the petition;
• Helps claimants clearly understand their rights, obligations, and legal risks;
• Assists in collecting and assessing appropriate legal evidence with sufficient probative value to persuade the Court;
• Proposes legal strategies suitable for each specific case and type of dispute (commercial, labor, intellectual property, etc.);
• Enhances the likelihood of success while saving time and costs in dispute resolution.

3. Jurisdiction over lawsuits against enterprises

Pursuant to Articles 36, 37, and 39 of the Civil Procedure Code 2015, jurisdiction over lawsuits against enterprises is determined as follows:

Jurisdiction by court level:

• District-level People’s Courts: Having jurisdiction over most civil and commercial cases in which the defendant (the enterprise) has its headquarters within the district, county, or city where the court is located, except for cases falling under the jurisdiction of provincial-level courts.
• Provincial-level People’s Courts: Having jurisdiction where the case:
  + Involves foreign elements;
  + Involves a claimant or defendant that is a foreign-invested enterprise;
  + Is complex or has a wide-ranging impact.

III. Common questions regarding consultation on initiating lawsuits against enterprises

1. What should be noted when consulting on international business cooperation?

When enterprises engage in international business cooperation, consultation on litigation must pay special attention to:

• Foreign law elements: It may apply for the law of the host country or international law.
• Dispute resolution agreements: Many contracts stipulate international arbitration or foreign courts as the dispute resolution mechanism.
• Language, governing law, and venue: These factors significantly affect litigation consultation.
• Enforcement of foreign judgments: The validity and enforcement of foreign judgments in Vietnam (or vice versa) must comply with regulations on recognition and enforcement of foreign judgments.

2. Is it necessary to collect evidence and relevant documents when consulting on initiating lawsuits against enterprises?

The collection of sufficient evidence, documents, contracts, invoices, email correspondence, records of violations, quotations, etc. is a main condition to:

• Prove that the petition has legal grounds;
• Avoid dismissal of the petition due to insufficient evidence;
• Support lawyers in developing an effective litigation strategy.

Consultants typically assist in assessing the legality and evidentiary value of documents before advising on litigation.

3. Who is entitled to request consultation on initiating lawsuits against enterprises when a dispute arises?

Any individual, organization, or enterprise that:

• Suffers damage or believes that its lawful rights and interests have been infringed by another enterprise; and
• Has a need to use legal services.

Specifically, it includes:

• Customers whose contracts have been breached by enterprises;
• Shareholders whose rights and interests in a company are infringed;
• Employees involved in disputes with enterprises;
• Partners or suppliers who are owed money or whose business agreements have been breached.

4. Should mediation be applied before consulting on initiating lawsuits against enterprises?

Mediation is an effective pre-litigation measure because it:

• Saves time and costs;
• Preserves cooperative relationships;
• Demonstrates the parties’ goodwill in resolving disputes.

In certain cases, the law requires mediation before litigation (for example, individual labor disputes not related to dismissal or disciplinary measures). If mediation is unsuccessful, consultation on litigation will benefit from additional information for analysis.

5. Must consultation on initiating lawsuits against enterprises comply with provisions of the Law on Enterprise?

Consultation on litigation involving enterprises must consider the provisions of the Law on Enterprise 2020, particularly:

• The company charter and the rights and obligations of members;
• Legal liabilities of the legal representative and the Members’ Council/Board of Directors;
• Internal decision-making authority within the enterprise;
• Provisions relating to profit distribution, capital contribution, and internal governance.

Where disputes arise from within an enterprise, a thorough understanding of the Law on Enterprise is crucial for determining legal grounds for litigation.

6. Which contractual clauses may arise the need for consultation on initiating lawsuits to protect an enterprise’s interests?

Certain main contractual clauses are often the source of disputes and lead to the need for litigation consultation, including:

• Payment clauses: Late payment or failure to make payment;
• Sanction and liquidated damages clauses;
• Time limits for execution of obligations and delivery conditions;
• Confidentiality, exclusivity, and technology transfer commitments;
• Dispute resolution clauses (arbitration or court);
• Clauses on unilateral termination of contracts.

If any of these clauses are breached, enterprises require specific consultation on the feasibility of initiating legal proceedings to protect their interests and avoid economic losses.

IV. Consultation services on initiating lawsuits against enterprises

The above constitutes all detailed information provided by NPLaw to support our clients in matters relating to consultation on initiating lawsuits against enterprises. Should you have any further questions regarding the above issues or other legal matters, please contact NPLaw for direct consultation and guidance from our professional team.