[Case Summary]This case involves a civil loan dispute. The plaintiff, Li * and the defendant, Wang * are friends. Since 2020, Wang * has borrowed money from Li * multiple times. On September 3, 2020, they signed a "Receipt" confirming that Wang * owed Li * 550,000 yuan with an annual interest rate of 5%. However, Wang * has failed to repay the loan for a long time, so Li * entrusted Beijing Henglu Law Firm to handle the case on his behalf.Su BenkaiThe lawyer filed a lawsuit, requesting repayment of the principal, interest, and attorney's fees of 10,000 yuan incurred in enforcing the creditor's rights. The defendant failed to appear in court, and the court determined that the loan relationship existed, supporting the interest and attorney's fees. The core dispute is whether the attorney's fees can be borne by the borrower. Applicable laws: Relevant provisions of the Contract Law of the People's Republic of China and the Civil Procedure Law of the People's Republic of China.

I. Review of the case

In private lending, it's often the case that "it's easy to borrow money but hard to get it back". Clients often ask questions such as "Is it valid to stipulate in the promissory note that the borrower shall bear the attorney's fees?" "How will the court rule if the borrower fails to appear in court?" and "How to calculate legal interest in private lending?". The plaintiff, Li * and the defendant, Wang * are friends. Since April 18, 2020, Wang * has borrowed money multiple times for capital turnover. As of September 3, 2020, the two parties signed a written "Receipt" confirming that there was still a debt of 505,000 yuan, with an agreed annual interest rate of 5%. After repeated reminders and the borrower still failing to repay, Li * consulted various parties and entrusted a lawyer to handle the case.Su BenkaiThe lawyer files a lawsuit to safeguard his legitimate rights and interests.

II. The focus of the case

  • Focus 1: Identification of the borrowing relationship and the amount of the debt.The written receipt confirms that the debt amount is 505,000 yuan, and the lending relationship is clear.
  • Focus 2: Should the agreed annual interest rate of 5% be supported?The interest rate does not exceed the statutory protection cap and is supported by law.
  • Focus 3: Can the attorney's fees be borne by the borrower?The agreement stipulates that the borrower shall bear the costs of realizing the creditor's rights, and the validity of this agreement is the point of contention.

III. The professional intervention of Hengluo Law Firm

The plaintiff originally claimed that:The defendant owes a total of 505,000 yuan, with an agreed annual interest rate of 5%. The promissory note also stipulates that if the borrower fails to repay on time, all the expenses incurred by the lender in enforcing the creditor's rights shall be borne by the borrower. The plaintiff requests the court to order Wang * to repay the principal of 505,000 yuan and the interest (provisionally calculated at 34,796.58 yuan), pay the attorney's fees of 10,000 yuan, and bear the litigation costs.

The defendant argued that:In this case, the defendant, Wang * , was legally summoned but failed to appear in court to defend himself and did not make any defense.

Hengluo Lawyer's Agency Opinion:Su BenkaiAfter accepting the client's commission, the lawyer immediately started the representation and analyzed that the civil loan relationship between the plaintiff and the defendant was a true expression of intent and did not violate mandatory legal provisions, so it should be considered valid. The defendant's failure to repay the loan within the agreed time constituted a breach of contract and should bear the liability for breach of contract. The lawyer sorted out and calculated the loan amount and interest, and submitted evidence such as promissory notes, receipts, loan contracts, power of attorney contracts, invoices, etc., claiming that the borrower should bear the lawyer's fees according to the agreement.

IV. Outcome of the case

The court determined that there was a legal relationship of private lending between the plaintiff and the defendant, and supported the interest calculation method and attorney's fees claimed by the plaintiff. The judgment is as follows: 1. The defendant shall repay the principal of 505,000 yuan and interest (based on 505,000 yuan, calculated at an annual interest rate of 5% from September 3, 2020 to the actual repayment date) within ten days from the effective date of the judgment; 2. The defendant shall pay attorney's fees of 10,000 yuan; 3. The case acceptance fee of 9,297 yuan shall be borne by the defendant. At this point, the principal, interest, and attorney's fees shall all be borne by the borrower.

5. Henglu Law Firm's Reminder

This case is handled by Beijing Henglu Law Firm.Su BenkaiAttorney (Practice Certificate No.: 11101202110375397, subject to the document issued by the judicial administrative organ): Acting on behalf of the client. Hengluo Law Firm warmly reminds: When lending money, it is necessary to sign a promissory note or a loan contract and keep the evidence; preferably use transfer as the main payment method, as cash transactions carry high risks; the promissory note should clearly state the borrower's ID number, valid address, etc., and may, as appropriate, stipulate the responsibility for bearing the costs of realizing the creditor's rights.

VI. Common Questions and Answers about Civil Loan Disputes

  1. Q:The loan agreement stipulates that the borrower shall bear the attorney's fees. Will the court support this provision?
    A:Support. If the lender and the borrower expressly agree that the borrower shall bear the costs of realizing the creditor's rights (including attorney's fees), and such agreement does not violate the law, the court will usually support it.
  2. Q:If the borrower doesn't appear in court, will the court order me to repay the money?
    A:Yes. If the defendant refuses to appear in court without a valid reason after being legally summoned, the court may conduct the trial in absentia, and the plaintiff, if his/her evidence is sufficient, may have his/her claims supported by the court in accordance with the law.
  3. Q:Is it legal to agree on an annual interest rate of 5% for private lending?
    A:It's legal. The annual interest rate of 5% is far below the judicial protection cap, and the court will support the interest according to the agreement.
  4. Q:Can I sue someone even if I only have a receipt but no transfer record?
    A:Yes, but the evidence is not very convincing. It's better to supplement it with transfer receipts, chat records, and other materials to form a chain of evidence.
  5. Q:What materials are required to sue for a private loan?
    A:Prepare the promissory note/loan contract, transfer receipts, collection records, identity information, and power of attorney materials. If necessary, submit the lawyer's fee invoice.