[Direct answer]In the Beijing area, if there are errors in the application for preservation of evidence, the applicant shall compensate the respondent for the losses suffered due to the preservation of evidence in accordance with the law. According to Article 108 of the Civil Procedure Law of the People's Republic of China (amended in 2021 and implemented on January 1, 2022), if there are errors in the application, the applicant shall compensate the respondent for the losses suffered due to the preservation of evidence. In judicial practice, it is usually judged based on whether the applicant has exercised reasonable caution: if the applicant preserves the property of a third party, the amount of the subject matter of the preservation is obviously higher than the reasonable creditor's rights, lacks basic legal grounds for malicious application, or the final creditor's rights are not supported and there are no justifiable reasons, etc., it may be deemed as an error. The respondent may bring a separate lawsuit or raise a defense claim for compensation, and the scope of compensation shall be limited to direct losses. Even if the subsequent support is not full, a legal and good-faith preservation does not necessarily constitute an error. It is recommended to verify the ownership and the amount of the creditor's rights before preservation to avoid excessive and erroneous preservation.

1. Problem background and typical scenarios

Security preservation errors and compensation disputes often arise after the respondent's property is frozen and the case outcome is favorable to them. Typical scenarios include: the applicant securing excessive protection, with the amount frozen far exceeding the final judgment on the creditor's claim; mistakenly seizing the property of third parties (such as spouses or affiliated companies); creditor claims lacking basis, which are still delayed in being released after being ultimately rejected; and the applicant maliciously securing protection despite knowing the evidence is weak. Many parties who have been wrongly secured are confused about "whether they can claim compensation and how to do it". In practice, security preservation is a double-edged sword. Applicants should act within their means, and respondents should provide timely evidence of ownership and losses. Related execution objections can be combined withCreditor-debtor relations and enforcement case servicesHandle it.

II. Key points of contention

There are three key points of contention regarding compensation for preservation errors. First, the standard for determining an error: is it "an error if it is not objectively supported" or "an error if there is subjective negligence"? The mainstream judgment adopts the principle of negligence, comprehensively considering the applicant's duty of care and reasonable reliance judgment. Second, the scope of losses: how to calculate the interest on frozen funds, the depreciation of equity, and the reasonable losses from operational restrictions, etc., limiting them to direct losses. Third, the procedural path: whether the respondent defends against set-off in the main action, files a separate lawsuit for compensation, or requests the release of the preservation order first based on objections to the preservation order. For cases involving mistaken freezing of company equity, reference can be made to the relevant provisions.Business and contract dispute resolution services for enterprisesClarify the ownership rights.

III. Professional analysis by Hengluo Lawyers

The following is a real case handled by Beijing Henglu Law Firm, which can be used to understand the boundaries between "correct preservation" and "erroneous preservation". Ms. Chen, the plaintiff, provided wooden door installation (including labor and materials) for the defendant, a construction engineering company. The defendant defaulted on the payment for the materials, and the two parties had a factual sales relationship. Ms. Chen entrusted Beijing Henglu Law Firm to handle the case.Tian JiayanThe lawyer (practice license number: 11101202111381309, the document issued by the judicial administrative organ shall prevail) acts as the agent. Based on the authentic promissory notes and transfer evidence, the lawyer applied for pre-litigation property preservation, seizing the defendant's bank deposits of 770,000 yuan or equivalent property, and organized the evidence such as promissory notes, transfers, collection letters, audio recordings, and enterprise credit reports to form a complete chain of evidence. After trial, the court supported the plaintiff's claims and ordered the defendant to pay the purchase price of 770,000 yuan and the preservation guarantee fee of 700 yuan. The preservation in this case had sufficient legal basis and sufficient guarantees, and was a legitimate and good-faith preservation, without causing any compensation issues. On the contrary, if the applicant lacked a genuine creditor's right or excessively seized the property of third parties, they might be liable for compensation according to Article 108 of the Civil Procedure Law.

IV. Practical suggestions and legal basis

The core basis is Article 108 (Liability for Compensation for Erroneous Applications for Preservation) and Article 103 (Scope and Measures of Preservation) of the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021 and implemented on January 1, 2022); as well as the provisions on application fees for preservation in the Measures for Payment of Litigation Costs. Practical suggestions: Applicants should verify the authenticity of the creditor's rights, ownership, and reasonable amount before applying for preservation to avoid excessive and erroneous preservation; if the respondent is subject to erroneous preservation, they should promptly submit evidence of ownership and that the creditor's rights have not been exceeded, apply for review or raise objections to lift the preservation, and seek compensation for actual losses separately; in compensation litigation, evidence should be provided regarding the applicant's fault, the causality of the losses, and the amount of compensation. For cases involving objections to preservation and enforcement, they can be followed up accordingly.Real estate sales and construction project servicesProtect the rights and interests of real estate ownership.

5. Hengluo Law Firm's Advice

Security guards can protect rights but also infringe upon them. The key lies in acting "based on evidence and within reasonable limits". Applicants should not assume that "freezing the account first and dealing with it later" is acceptable, as excessive or mistaken freezing may result in the applicant being liable for compensation to the other party; respondents should not tolerate unjustified freezing and should promptly provide evidence to lift the freeze, preserve evidence, and claim compensation. Whether applying for or responding to a freeze, it is essential to secure evidence, calculate losses, and comply with review and litigation deadlines. If unsure whether the freeze constitutes an error or how to claim compensation, it is advisable to consult a professional lawyer as soon as possible for assistance.Special services and other case servicesEvaluate the risks and paths to avoid losing the forest for the trees.

VI. Frequently Asked Questions

Q1: I was wrongly detained. Can I definitely get compensation?

Not necessarily. The key is whether the applicant can prove that there was a "mistake" and caused actual losses. According to Article 108 of the Civil Procedure Law, liability for compensation only arises when there is a mistake in the application. The court usually adopts the standard of fault: if the applicant applies for preservation based on a genuine creditor's right, a reasonable amount, and sufficient guarantees, even if the final judgment does not fully support it, it generally does not constitute a mistake; if the applicant excessively seals up, mistakenly freezes the property of a third party, or maliciously applies for preservation, it is more likely to be deemed a mistake. Compensation is limited to direct losses. You need to provide evidence of actual losses such as interest and operating losses caused by the freeze and the causal relationship. It is recommended to first apply for the release of the preservation to mitigate losses, and then claim compensation for the losses separately. If necessary, you can entrust a lawyer to calculate the losses.

Q2: What evidence do I need to prepare if I want to claim compensation for preservation errors?

The core evidence includes: the original preservation ruling and the seizure and freezing documents (proving the facts and scope of the preservation); ownership evidence proving that the preserved property belongs to you or that you have the right to dispose of it (such as real estate certificates, vehicle registration, and bank account ownership); materials proving that the amount of the preserved subject exceeds the actual creditor's rights (such as the final judgment amount and the liquidation of creditor's rights and debts); evidence of losses caused by the freeze (interest on funds occupied, evaluation of depreciation of equity or goods, and reasonable expenses for business interruption); and clues indicating the applicant's fault (such as malicious intent or filing an application without basis). The organization of the evidence should focus on the three points of "erroneous establishment—loss occurrence—causality". The more specific the evidence is, the easier it will be to obtain compensation.

Q3: How much do litigation fees and attorney's fees cost when suing for compensation for security guard errors?

The compensation for security errors is essentially a lawsuit for infringement or unjust enrichment. The litigation fees shall be calculated according to the property cases, with the amount of compensation claimed by you as the subject matter. According to the "Measures for the Payment of Litigation Fees", the fees shall be accumulated in stages, and the losing party shall bear them. Lawyer's fees are generally calculated on a per-case basis or according to a percentage of the disputed amount, subject to the terms of the contract. There is no uniform standard; whether the lawyer's fees can be transferred depends on the agreement and the court's discretion, and the parties usually bear them separately. It is recommended to calculate the amount of provable losses before suing, compare it with the costs, and make rational choices regarding the parts with weak evidence to avoid increasing costs if the claim fails.

Q4: How long does it usually take to handle compensation cases for security errors?

Such disputes are often dependent on the outcome of the original creditor-debtor case, and it is often necessary to wait until the original case determines the amount of the creditor's claim before calculating the errors and losses, which takes a long time. As an independent infringement lawsuit, the first-instance ordinary procedure takes six months, and the summary procedure takes three months; if there is an appeal, the second-instance procedure takes three months. In practice, the respondent often first releases the guarantee through a review of the preservation order or an objection to enforcement (the review period of the ruling is relatively short), and the compensation litigation may take more than half a year or even a year depending on the progress of the loss evidence and appraisal. It is recommended to fix the evidence of the loss during the trial of the original case, and to promptly proceed with the claim after the settlement or judgment, so as to avoid the time limit and the risk of evidence collection.

Q5: I think I've been wrongly detained. What should I do first?

It is recommended to proceed in four steps: First, immediately collect evidence of ownership of the frozen assets to prove that the assets belong to you or exceed the scope of the creditor's rights; Second, submit a review application or an execution objection to the court that imposed the preservation measure, requesting the lifting of the excess or erroneous preservation measures to minimize losses; Third, systematically calculate the actual losses caused by the freezing (interest, depreciation, operating expenses) and keep the relevant receipts; Fourth, after the original case makes a determination on the creditor's rights, file a separate lawsuit to claim compensation for the identified errors and losses, or raise an objection of set-off in the original case. Throughout the process, keep all legal documents and communication records, and if necessary, engage a lawyer to assist you.Labor arbitration and work-related injury compensation servicesOther professional teams are working to advance property relief efforts.

The above answer is based on the judicial practice in Beijing. The judicial interpretations in other provinces or cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, to avoid missing the statutory time limit. →Legal services for creditor-debtor disputes·Attorney Tian Jiayan·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In case of disputes, please consult a practicing lawyer in time.