Are companies subject to "heavy fines for minor offenses"? Court: The punishment is inappropriate and must be corrected!

On May 27, the Intermediate People's Court of Xiangyang City, Hubei Province released ten typical cases for optimizing the business environment. One of the cases stood out to me——"Small excessive penalties" corrected.

This case is relevant to each of us business owners.

What's going on? Fined 200,000 for minor liability

An enterprise management company is a construction unit, and a production safety accident occurred. What responsibility does this company bear in this accident?Secondary liability, indirect liability.

But guess what the emergency department punished? Just like the construction company that directly caused the accident——fined 200,000.

Of course the company was not convinced and filed a lawsuit. The court of first instance supported the penalty decision. In the second trial, Xiangyang Intermediate Court took action.

The second instance held that the company’s illegal conduct was relatively minor and the circumstances were minor, and the punishment should be commensurate with the nature, circumstances, and harmful consequences of its illegal conduct. To put it simply, it’s four words——Too much penalty.

What was the final verdict?Fine reduced from 200,000 to 50,000.

"Severe penalties for minor offenses" are a common problem

This case is not an isolated one.

In law enforcement practice, "heavy fines for minor offenses" are a long-standing phenomenon. If a company makes a small mistake or oversight, the law enforcement authorities will impose heavy fines. When companies complain about injustice, law enforcement authorities say "there are laws to follow."

What's the problem?

The Administrative Penalty Law clearly stipulates that the establishment and implementation of administrative penalties must be based on facts and be commensurate with the facts, nature, circumstances and degree of social harm of the illegal act.

Translated into human words:The amount of the fine depends on the severity of your crime.. Just because you are a business, you cannot be punished to death.

However, in actual law enforcement, many departments often adopt a "one size fits all" policy in order to save trouble and serve as a deterrent - regardless of the severity of the circumstances, all fines will be the upper limit.

What should companies do if they encounter "heavy fines for minor offenses"?

First, don’t give in.

Many companies feel that "the people do not fight with the officials" and will admit defeat once the punishment is decided. In fact, you can apply for administrative reconsideration within 60 days from the date of delivery of the administrative penalty decision, and you can file an administrative lawsuit within 6 months.

The company in this case relied on litigation to turn things around.

Second, grasp the core of "the penalty is equal to the penalty".

When the court examines whether an administrative penalty is legal, it focuses on two points: first, whether the facts are clear; second,Is the punishment commensurate with the circumstances of the violation?. If your offense is clearly minor and the penalty is clearly excessive, this is your break.

Third, keep relevant evidence.

Evidence that your offense was a minor one – are you a first offender? Have you actively cooperated with the investigation? Has actual harm been caused? Are there any mitigating circumstances? These may be reasons for the court to support you.

What signal does this case send?

It is no accident that Xiangyang Intermediate People's Court listed this case as one of the "Top Ten Typical Cases of Optimizing the Business Environment."

This sends a clear signal:Courts are correcting excessive enforcement by administrative agencies, the issue of "small excessive penalties" is being rectified by the judiciary.

This is good news for business owners.

Yingting lawyer reminds

If your company encounters a clearly unreasonable administrative penalty, you must:

1.Carefully review the penalty decision, to see whether the fact finding is accurate 2.Evaluate whether the penalty is excessive, compared with similar cases 3.Initiate legal relief procedures promptly, do not delay reconsideration or litigation 4.Find a professional lawyer to represent you, highly professional in administrative litigation

The law gives you relief channels, don't give up easily.

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To defend your rights against administrative penalties, find Yingting lawyer

Beijing Yingtong Law Firm focuses on the field of administrative litigation, helping business owners safeguard their rights and interests in accordance with the law and saying no to "excessive and inappropriate" administrative penalties.

(Note: This article is for general reference only and does not constitute legal advice. Please consult a professional lawyer for specific questions)