On December 15, Haikou Maritime Court concluded an enforcement case concerning a major construction project at Yangpu Port. The enforcement, turning the impossible into possible, was a practice of the concept of “active justice” and the principle of carrying out enforcement with goodwill and humanity. The successful enforcement of the case not only solved the complicated legal issues but also alleviated people’s concerns, achieving win-win outcomes for all: the legitimate rights of the enterprise were protected, the land of the idle terminal yard was put into use, and the major construction project was moving forward.

Case review

SDIC Yangpu Port Co., Ltd. (the “Port”) leased a terminal yard of 23,107 m² within its port area to Yangpu XXX Development Co., Ltd. (the party subject to enforcement, the “Respondent”) for the loading, unloading, storage and processing of coal. After signing the contract, the Respondent constructed factory buildings and installed equipment and facilities on the premises. However, due to poor corporate management of the Respondent, the premises were unattended to and was almost deserted. Given that the Respondent had been defaulted on rental payment for a long time and multiple attempts to settle the matter through consultation had failed, the Port filed a lawsuit before Haikou Maritime Court to request the Respondent to remove and clear off the buildings, facilities and equipment and return the leased properties to the Port. The Court heard the case and ruled to support the request of the Port. Later, the Port applied with Haikou Maritime Court for enforcement.

During enforcement, the Court discovered that the coal washing machine installed on the premises and the unreported factory buildings had been seized by other courts from other province for disputes involved in other cases. As the third court seeking seizure of these properties, Haikou Maritime Court could not neglect the preceding seizures to dispose of the buildings, equipment and facilities in question. The enforcement procedures fell into a deadlock.

Breaking the deadlock through proactive judicial actions

“Sir, how can our project get underway if these (buildings and equipment) aren’t removed? It’s difficult for us to go on with it…” At the terminal yard, a project manager from the Applicant complained to the judges.

The Applicant is an enterprise above designated size within the key industrial zone and a backbone enterprise engaged in Hainan’s construction of the Free Trade Port. The timely clearance of the premises was essential for the due progress of a key construction project in the zone. The Court attached great importance to this case: the leadership conducted multiple field surveys, worked on the spot, visited enterprises and talked with the residents, and called on the enforcement team to study the issues. Learning that other courts could not effectively disposed of the seized properties quite soon, the handling judges travelled to Guangzhou for five times to consult with these courts, trying every effort to acquire the right to dispose of the equipment concerned. Despite many tricky issues such as missing records for the seizure filings, change of the jurisdiction for seizure, and staff transfer in these courts, the handling judges finally resolved all these issues. Eventually, the two courts agreed to transfer the right to dispose of the equipment in question to the Court. The final resolution of the enforcement case became possible.

Resolving the dilemma by tough measures yet with mercy

“We are rightful tenants in this place for almost ten years! How dare you expel us?” Some tenants became irritated and refused to relocate, learning that the enforcement procedures would soon be carried out by the Court. After being seized, the equipment and the illegal buildings in question were occupied by some third party and leased to multiple enterprises and individuals for long-term use.

In such circumstance, considering the involvement of several interested parties (incl. the actual constructor, lessee, and illegal occupants), before taking coercive measures to clear off the premises, the enforcement officers always kept in mind the principle of conducting enforcement with goodwill and humanity. They patiently explained the law and informed the consequences that might arise due to the illegal occupation: to the constructor, they explained that the project payments had been paid by rental payments and the constructor would have to bear the legal consequence for obstructing enforcement procedures if they continued to take illegal occupation of the terminal yard; and to the illegal tenants, they explained with great patience that the rental properties were illegal structures and thus was not protected by law and gave ample time for the tenants to move out. Announcements were also posted on the premises to explain the consequences of illegal occupation. The relocation was eventually completed. With the enforcement uncertainties was removed, a most desirable enforcement outcome was expected and the final settlement of the case was underway.

Conducting enforcement in due procedures to hold the situation under control

“Report the situation of the enforcement site!”

“Command center, we have arrived at the site.”

“Preparation is completed and enforcement target is confirmed.”

“Ensure safety measures are in place and follow due procedures!”

After the disputes in other proceedings in other province were resolved, the case proceeded to compulsory demolishing. At 10 a.m. of December 15, among the flashing lights and in the witness of the deputies to the Municipal People’s Congress and the media, the Court’s enforcement officers hurried off to the site and attended to their own duties. At the word of command, the factory buildings and structures on the premises were dismantled, and the equipment installed inside was also removed. As the premises were handed over to the Applicant, the enforcement was finally concluded.

The conclusion of the case is a vivid practice of the concept of “active justice” by Haikou Maritime Court, and a response to the special campaign of the provincial Party committee to promote high-quality development of enterprises above designated size. By maintaining the authority of law and by removing the uncertainties in the enforcement procedures to the greatest extent possible, Haikou Maritime Court has acted to restore the confidence of enterprises to more forward and to safeguard the stable performance and high-quality development of the economy and society.