Yingting news

[Cause] A case involving illegality, rescission and compensation of a state-owned land construction use right transfer contract

The economic development zone's investment promotion needs hope that the hydraulic machinery company will settle in the economic development zone. After reaching an investment intention through negotiation and communication, the hydraulic machinery company signed a "State-owned Construction Land Use Rights Transfer Contract" with the Economic Development Zone Branch. The hydraulic machinery factory paid a land transfer fee of 6.28 million yuan. The company purchased a state-owned land use right, which was transferred by the Municipal Land and Resources Bureau to the Hydraulic Machinery Company as an industrial land with a use period of 50 years. It was agreed that the delivery time of the land was November 2, 2012. On the 16th, the Hydraulic Machinery Company paid 6.28 million yuan in full in accordance with the contract.

Originally, the Hydraulic Machinery Company thought that the land could be delivered as promised, so they started preparing for development and construction. However, something unexpected happened. The land was not obtained for a long time. Every time they tried to urge it, they were always shied away by various reasons. The construction plan of the Hydraulic Machinery Company was also forced to stall, resulting in a breach of the corresponding contract. The land could not be obtained, and various expenses still had to be paid.

The breach of the administrative agreement caused heavy losses to the hydraulic machinery company. Seeing that it could not be resolved through negotiation, the person in charge of the hydraulic machinery company contacted Beijing Yingtong Law Firm through understanding.Lu Yongqianglawyers andDong Guonvlawyer, and quickly rushed to Beijing to participate in a special case analysis meeting hosted by Lawyer Lu and Dong. After analyzing the analysis and materials, we clearly understood the ins and outs of the case. At the same time, we also explained to the person in charge of the company its legitimate rights and interests and legal basis, as well as the preliminary confirmation of the rights protection plan. The person in charge of the company recognized the professional capabilities and rights protection plan of the Yingting Lawyers Group. After full entrustment, the Yingting Lawyers Group fully launched the rights protection process.

After full investigation and collection of evidence and evidence sorting, litigation procedures were initiated. On the grounds that the administrative agreement was breached and the company was liable for compensation, the land transfer fee of 6.28 million yuan was required to be returned, as well as to pay interest of more than 1.26 million yuan, and to pay liquidated damages of more than 5.96 million yuan as of June 2015. At the same time, the administrative agreement will be terminated.

In the end, the court supported the opinions of lawyer Lu Yongqiang, lawyer Dong Guonv and the parties, and ruled:

1. Terminate the administrative agreement

2. Refund 6.28 million yuan within 30 days after the judgment takes effect, and bear interest calculated at 1.3 times the loan interest rate for the same period from November 17, 2012 to the date of actual payment.

3. Compensation for project investment losses of more than 1.06 million yuan

4. Compensation for deed tax of more than 250,000 yuan

5. The defendant shall bear the case acceptance fee and appraisal fee of more than 80,000 yuan.

Case summary

The government-enterprise dispute lawyer team of Yingting Law Firm, with lawyers Lu Yongqiang and Dong Guonv as the core, has many years of experience in resolving government-enterprise disputes. It focuses on non-litigation (that is, safeguarding the rights and interests of enterprises while taking into account government-enterprise relations), and at the same time assists with litigation legal means to achieve the protection of the legitimate rights and interests of enterprises.