Opening remarks
Fairness and justice are the yearning of the people, the measure of happiness, and the soul and life of justice. In recent years, courts at all levels in Liuzhou have closely focused on the theme of "fairness and efficiency", insisted on serving the overall situation and administering justice for the people, focused on the people's urgent and difficult problems, and put active justice throughout the trial work, striving to achieve the organic unity of the legal, political and social effects of trial and enforcement work. The Liuzhou Intermediate People's Court and Liuzhou Daily cooperated to launch the column "Active Performance of Duties, Justice for the People", which shows the feelings of justice for the people and gathers the power of upward and good through vivid cases to explain the law and explain morality with cases.
Liuzhou Daily published on page 03 on January 13, 2024
Efficient linkage to solve the "chain buckle"
The People's Court of Liucheng County has built a diversified platform for resolving disputes involving enterprises to help enterprises get out of difficulties
The boss signed a contract with his actual control company, and repeatedly transferred the money of the wood processing company of which he was the legal representative to the wood-based panel production company related to him by ordering goods and borrowing money, resulting in confusion in the accounts of the two companies, and led to 21 cases involving private loan disputes and lease contract disputes, involving an amount of up to 100 million yuan. The People's Court of Liucheng County has built a diversified platform for resolving disputes involving enterprises to resolve disputes from the source and help enterprises get out of business difficulties.
Arrears dispute case leads to "serial debts"
Qin Xing (pseudonym) is not only the legal representative of the wood processing company, but also a shareholder of the wood-based panel production company. From May 2014 to March 2018, Qin Xing repeatedly used his status as the legal representative to transfer the funds of the wood processing company to the wood-based panel production company. In addition, from 2015 to 2021, Qin Xing ordered nearly 6 million yuan worth of goods from wood processing companies, but never paid for the goods.
The wood processing company repeatedly refused to collect the monetary principal and overdue interest from Qin Xing and the wood-based panel production company, after which the wood processing company sued Qin Xing and the wood-based panel production company, asking the court to order Qin Xing to repay the loan principal of more than 18 million yuan and pay the loan interest of more than 10 million yuan.
In the course of the trial, the court found that the case was far more complicated than imagined, and the arrears dispute between the two companies led to 21 cases in which Qin Xing was a party to another case, and the cause of action of the case included private lending, lease contract disputes, financial loan contract disputes, sales contract disputes, etc., involving parties including senior managers of local banks and related wood companies, and the amount involved was as high as 100 million yuan. If the dispute cannot be properly resolved, it will have a great negative impact on the local economic development and financial environment, and even impact the development of local leading industries.
The pre-trial mediation failed in case differences
After the case was exchanged before trial and mediation was organized, the parties were still unable to reach a consensus. After the case entered the trial, the parties also had huge differences, and there were three main points of dispute. First, due to historical and corporate governance irregularities, whether the legal representative has legal effect by signing the contract without the consent of the company's shareholders. Second, if Qin Xing's signatures and receipts and payments during his tenure as the legal representative or shareholder are found to be legally valid, then should other company executives who also have signatures and receipts and payments be added as joint and several obligors to bear the corresponding payment liability to the plaintiff. Third, the wood-based panel production company is willing to bear the responsibility of repayment through the accounts, but the time span of the accounts is more than 10 years, there are many information, and due to a series of disputes, the accounts have been seized, and it is impossible to conduct standardized judicial audits.
"Conducting a judicial audit in accordance with normal procedures is more difficult for both companies, and it is not conducive to enterprises getting out of the current business difficulties as soon as possible. Although a judgment of the court can distinguish the winner from the loser, it cannot completely resolve the dispute of the enterprise. The trial judge said that it is necessary to find the best solution to resolve the dispute in an efficient manner.
The series of disputes were finally substantively resolved
After combing through the case in detail and comprehensively considering the interests of all parties, the presiding judge still decided that mediation should be given priority. According to the judge, mediation is a method that allows the parties to resolve conflicts at the lowest cost and as quickly as possible. The total amount involved in this case and the 21 implicated cases is as high as 100 million yuan, involving multiple enterprises, and if the litigation trial procedure continues, it will be a complex and lengthy process, which will consume a lot of financial resources and energy of the parties, and may also lead the enterprises to bankruptcy.
In order to save judicial resources, effectively promote the healthy development of enterprises, and maintain social stability and harmony, the court strengthened communication and coordination with the United Front Work Department of the Liucheng County Party Committee, the County Federation of Industry and Commerce, and the bank, and entrusted the People's Mediation Committee of the Liucheng County Chamber of Commerce to participate in the mediation.
At the same time, the court also organized all parties to participate in the coordination forum, carefully listened to the opinions of the parties, summarized the focus of the dispute, and repeatedly sorted out the crux of the contradictions.
Move with affection, know with reason. Under the joint mediation led by the court and multiple departments and organizations, the parties finally reached a settlement, and the court issued a mediation letter to confirm the undisputed part of the payment, arrears and rent, with a total amount of more than 24 million yuan. For the disputed claims, the county chamber of commerce mediation committee signed an out-of-court settlement agreement.
In the end, the cases involving more than 1,400 supply transactions that had been in the tug of war for six years and the 21 implicated cases in which the defendant was a party to another case were substantively resolved. In December last year, the case was also rated as a typical case of people's mediation by the Liuzhou Chamber of Commerce.