Li Moumou’s counterclaim in the construction contract dispute case against Dalian Moumou Decoration and Renovation Engineering Co., Ltd.
2025-12-18
Keywords: Counterclaim; Thoroughly prepare the expert evidence materials.
Counseling Attorney: Shi Mo
Basic Facts of the Case: This is a successful case of turning a construction litigation case around from defeat to victory.
In 2021, the plaintiff and defendant signed a “Contract for the Undertaking of Decoration Engineering Projects,” under which Li Moumou was appointed to undertake the fine decoration works for the Zhonghai Shougang Chang’an Yunshang project in Shijingshan District, Beijing. After Dalian Moumou Decoration and Renovation Engineering Co., Ltd. defaulted on payment of the project funds owed to Li Moumou, triggering a labor dispute over unpaid wages, Li Moumou’s work crew suspended operations. Several days after Dalian Moumou Decoration and Renovation Engineering Co., Ltd. sent us a “Notice Urging Resumption of Work,” it subsequently issued a “Notice of Contract Termination” and filed a lawsuit with the People’s Court of Shijingshan District, Beijing, claiming that we had overpaid Li Moumou’s work crew more than 4.58 million yuan in project funds, plus liquidated damages and other losses. We immediately filed a counterclaim, demanding that Dalian Moumou Decoration and Renovation Engineering Co., Ltd. pay us over 3.39 million yuan in settled project payments, interest on late payments, and compensation for losses incurred due to the work stoppage. Thanks to our active cooperation with the appraisal company in conducting the quantity survey, our diligent efforts to gather evidence of change orders and additional items, and our repeated submission of substantial supplementary evidence documenting the losses caused by the work stoppage, the court ultimately ruled that the total cost of the completed works by Li Moumou’s work crew exceeded 10.46 million yuan. Furthermore, the court ordered Dalian Hengyi to pay us over 1.1 million yuan in project funds plus interest. Dissatisfied with this decision, the opposing party filed an appeal. Through persistent efforts, the second-instance court issued a final judgment upholding the original ruling.
Key highlights of the case: Initially, our side was the defendant. Faced with a large volume of evidence and unfavorable facts presented by the opposing party, we promptly denied the allegations and immediately filed a counterclaim as our response. We also actively cooperated with the appraisal company to ensure the smooth completion of the quantity surveying work.
Typical significance: This case involves the determination of the scope of work. The application for this engineering appraisal was filed and paid for by the defendant in the counterclaim. The case is highly specialized, with a complex factual background, and raises several key issues: the validity of the construction contract that was illegally subcontracted to an individual; subsequent remedies for the rights protection actions taken by migrant workers; the precise determination of the scope of work performed by the actual contractor; and claims for interest on late payments. Attorney Shi Mo fought vigorously and, during several court hearings, systematically refuted the arguments put forth by Dalian Hengyi, which denied our side’s claim regarding the construction work and project costs, as well as the additional items and quality issues. At the same time, she presented strong evidence supporting her client’s claims—including the retroactive ratification of signatures by the project manager on visa documents and the successful negotiation for additional costs related to winter construction operations. Her efforts won the court’s support, enabling her client to achieve the maximum possible benefit at the lowest litigation cost.
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