naruto-story Chapter 259 Empiricism
Chapter 259 Empiricism
(Sorry everyone, I originally planned to release a long bonus chapter today. However, that chapter involves too much core plot and business logic, and I'm still working on it and refining it. To ensure the quality of the story, I have to postpone the release of this bonus chapter until this evening. I'm very sorry for letting you down, I will work on it as soon as possible!)
Chiyoda Ward, Tokyo.
Nishimura General Law Office, Senior Conference Room.
Outside the panoramic floor-to-ceiling windows, the rain blurred the lush vegetation surrounding the Imperial Palace into a dark green.
The atmosphere around the large mahogany conference table was somber.
Smith, a senior partner at a Wall Street distressed asset investment fund, sat at the head of the table. He was wearing a dark blue striped suit and casually toying with a pen in his left hand.
Sitting opposite him was Watanabe, the firm's chief lawyer.
Watanabe remained composed. He held a copy of the judgment he had just retrieved from the Tokyo District Court and calmly handed it to Smith with both hands.
"Mr. Smith."
Watanabe met the other person's gaze and spoke at a measured pace.
"Regarding the application for the forced eviction of those prime retail locations in Shinjuku and Shibuya, the Tokyo District Court... has just issued a ruling rejecting it."
He pointed to a section of the document bearing the court's seal.
"The judge determined that the private lease agreement presented by the yakuza members occupying the shops was legally disputed. Based on the protection clauses for actual occupants in the current Land and House Leasing Law, the court refused to issue an immediate eviction order. Furthermore, the court initiated a mandatory 'pre-trial mediation' procedure in accordance with the law."
Watanabe placed a schedule next to the ruling.
"Due to the recent surge in similar real estate disputes, the first mediation hearing has been postponed to eight months later."
Smith lowered his head, his gaze sweeping over the Japanese judgment. The translation assistant beside him quietly translated the words "Rejected" stamped in red, along with the legal basis.
Smith stopped fiddling with the pen.
He gently placed the pen on the mahogany table. He slowly sat up straight, his body, which had been leaning slightly against the back of the chair.
Watanabe had indeed previously submitted a risk warning that Japanese courts might favor "occupied properties." But he didn't take it seriously at the time. In Wall Street M&A practice, local lawyers who charge by the hour always like to magnify minor legal obstacles.
He naturally assumed that Watanabe was simply exaggerating to extort more expensive consultation fees for a few dozen hours, or to shirk the pressure of clearing the area.
A few private lease agreements of dubious origin could actually allow a local court to brazenly block a legal property transfer worth hundreds of millions of dollars.
In New York or Chicago, when faced with these low-class thugs who occupy properties, courts can issue eviction orders without even waiting until sunset.
But in this Far Eastern island nation, this lengthy and extremely biased legal process clearly exceeded his usual business models. Simply applying legal documents seemed to have hit a very resilient wall.
The disdain in Smith's grey-blue eyes gradually faded. His gaze returned to the Japanese judgment, and his expression became solemn.
"It seems... the fast track through legal reasoning is indeed not going to work."
Smith placed his hands on the conference table, his brain starting to work at lightning speed.
He wasn't lying about one thing: he had indeed handled numerous cases involving the Mafia and stubborn labor unions in the United States. He was already adept at various pressure tactics.
"Attorney Watanabe."
"We can stop filing those pointless paperwork applications in court. Let's go straight to the backup plan."
Smith picked up the Montblanc pen again and tapped the tip lightly on the mahogany table.
"Contact the municipal authorities."
"As the legal owners, submit an application to cut off the water, electricity, and gas to those disputed shops. Don't leave them a single drop of water or a single unit of electricity."
The tapping of the pen paused for half a second.
"Simply cutting off the water and electricity isn't enough. You need to find a private defense company in Tokyo with the strongest local backing, comparable to Pinkerton in the US. Hire their tactical teams at great expense to block off the outer access routes of the shops 24 hours a day, and prevent anyone from entering or leaving during this period."
Smith placed the pen flat back on the table.
"Finally, open the fund's special public relations account. Approve three million US dollars and find the top media promoters. Tomorrow morning, I must see in-depth reports on the front pages of major newspapers about these yakuza organizations illegally seizing foreign capital and damaging Japan's business image."
"We need to physically push them into a corner, forcing them to come out and negotiate a settlement with us, in addition to cutting off their water and electricity and imposing intense public pressure.
Watanabe listened quietly to this extremely tough and meticulous "American model".
Ah... this is the same old trick again. If it were truly effective, would so many foreign acquisitions have failed?
However, since I charge by the hour, I only need to do my job well; other things are none of my concern.
"Mr. Smith, your handling of the situation is truly remarkable."
Watanabe bowed slightly.
"However... I must remind you again. The Japanese civil law system has a strict principle of 'prohibition of self-help'."
"Even if we have legal ownership, as long as the other party physically occupies the property, the owner has no right to take any physical eviction measures on their own before the court makes a final judgment."
Watanabe's gaze fell on the judgments.
"If you unilaterally cut off the water and electricity, or hire security personnel to intimidate tenants, the other party only needs to make a call to the police. The Japanese police will immediately arrest our security personnel on charges of 'obstructing business' and 'disrupting peace and life,' and may even directly prosecute the foundation's legal representative in Japan."
Smith looked at the Japanese lawyer opposite him.
The risk of criminal intervention by the Metropolitan Police Department. The possibility of prosecution by the legal representative in Japan. These new variables of resistance collided rapidly in his mind with the sunk costs of the frozen fund capital.
He leaned back in his leather chair, his grey-blue eyes slightly narrowed. His fingers unconsciously traced circles along the edge of the mahogany tabletop.
After a while.
Smith stood up and walked to the whiteboard on the side of the conference room. The whiteboard displayed the fund's IRR (Internal Rate of Return) calculation model for this batch of Japanese non-performing assets.
He picked up the marker.
"I understand the risks of the law. But in that extreme environment, I believe... no one can last more than two weeks." Smith said solemnly. "As long as we act quickly enough to force them to sign the relocation agreement before the police get involved on a large scale, all the risks can be hedged."
Smith drew a line on the original "capital recovery timeline" with the tip of his pen, pushing back the expected cash-out date by three months.
"Go ahead and carry it out. If you are summoned by the police, the foundation's legal department will provide full bail and legal support."
Watanabe looked at the timeline on the whiteboard that had only been modified for three months.
He nodded slightly, gathered the documents on the table, and stood up.
"As you wish, Mr. Smith. I will contact the relevant municipalities and security companies immediately."
Watanabe put the photocopy into his black briefcase.
A very slight sigh escaped his lips.
This Wall Street elite, who finally put aside his arrogance and began to take this business seriously, ultimately misused his strength.
Under the perversely biased "Land and House Lending Law" in Japan, unilaterally cutting off water and electricity will only lead to endless intervention and summons from the Metropolitan Police Department.
This bridge loan, worth hundreds of millions of dollars, is destined to be dragged into a protracted legal battle lasting three to five years. With the time cost consuming it, a negative IRR is inevitable.
However, this doomed outcome had nothing to do with him, the lawyer who was charged by the hour.