The other company’s boss has been placed under criminal investigation for contract fraud. Will my civil lawsuit against the company be stayed? Can I still recover the payment for my goods?
Not necessarily. Under Fa Shi No. 19 of 2026, effective from 22 September 2026, the choice between “criminal proceedings first” and parallel criminal and civil proceedings turns on whether the two cases involve the “same facts”: where the parties and the essential facts of the civil case and the criminal case are the same, the civil action is stayed pending the criminal proceedings; where the facts are merely related—for example, suing the company itself where it did not commit the crime, a guarantor, or other debtors—the court shall accept the case and hear it separately from the criminal case, unaffected by the criminal proceedings. Moreover, a contract tainted by criminal conduct is not void by default; its validity must be determined under the Civil Code.
