COVID-19: 5 Key Words Helping Understand the Latest Guiding Opinions of SPC

On April 20, 2020 the Supreme People’s Court has issued the Guiding Opinions on Several Issues Concerning the Proper Trial of Civil Cases involving COVID-19 epidemic.

 

We have listed the following 5 key words to help you better understand the lasted Guiding Opinions of the Supreme People’s Court.

 

 

Article 2 of the Guiding Opinions: The force majeure shall be applied accurately and in accordance with the law.

 

Civil disputes arising from the direct influence of epidemic or epidemic prevention and control measures and meeting legal requirements of force majeure shall be duly handled in accordance with the law. Where other laws or administrative regulations provide otherwise, such provisions shall prevail.

 

If one party claims force majeure to exempt its liability in whole or in part, that Party shall bear the burden of proof for the fact that its part or all civil obligations cannot be fulfilled due to force majeure.

 

 

Article 3 of the Guiding Opinions: The contract dispute cases shall be tried properly and in accordance with the law.

 

Should the contract be unable to be fulfilled owing to the epidemic or epidemic prevention and control measures, the force majeure shall be applied and the liability of contracting parties shall be exempted in whole or in part according to the influence degree of the epidemic or epidemic prevention and control measures. However, if one party can be blamed for the impossibility of performance or the aggravated losses, that party shall bear the corresponding liability.

 

Should one party only have some difficulties in performing the contract due to epidemic or epidemic prevention and control measures, the court encourages contracting parties to renegotiate and continue to perform the contract. If the parties request dissolution of the contract on the ground of difficulty in performing the contract, it shall not be upheld by the court.

 

Should it be obviously unfair to one party to continue to perform the contract and that party request variation on contract, the court shall decide whether to uphold in combination with practical situation.

 

Should the purpose of contract be unable to be advanced owing to the epidemic or epidemic prevention and control measures and one party request dissolution of the contract, the court shall uphold such request.

 

 

Article 4 of the Guiding Opinions: The labor dispute cases shall be handled in accordance with the law.

 

Should the employer request dissolution of labor relations only on the ground that the employee is a COVID-19 confirmed patient, a suspected patient, a asymptomatic infected person, is isolated or comes from the most affected areas, it shall not be upheld by the court.

 

Article 5 of the Guiding Opinions: The punitive damages shall be applied in accordance with the law.

 

Should the consumer request application of punitive damages for business operators’ unlawful act of providing masks, goggles, protective clothing, disinfectant or other epidemic prevention items, as well as foods and medicines, the court shall uphold such request.

 

 

Article 6 of the Guiding Opinions: The limitation of action shall be suspended in accordance with the law.

 

Should the obligee be unable to exercise its right of claim owing to the epidemic or epidemic prevention and control measures within the last six months of the limitation period and request suspension of the limitation of action, the court shall uphold such request.

 

Article 7 of the Guiding Opinions: The litigation period shall be postponed in accordance with the law.

 

Should one party be a COVID-19 confirmed patient, a suspected patient, a asymptomatic infected person or anyone in close contact and the litigation period have expired during the quarantine, the court shall uphold such party’s request for postponement of litigation period in accordance with relevant regulations.

 

 

Article 8 of the Guiding Opinions: The efforts to judicial relief shall be strengthened.

 

Should one party who is affected by the epidemic and has financial difficulties request the court to postpone, reduce or wave the litigation costs, the court shall examine as provided by law and come to a decision in time. 

 

Article 9 of the Guiding Opinions: The preservation measure shall be adopted flexibly.

 

The court shall adopt flexible preservation measures to enterprises affected by the epidemic, especially micro, small and medium-sized enterprises and individual business in order to lighten the burden on enterprises and help enterprises return to work.

 

The Supreme People’s Court has issued the Guiding Opinions with the purpose of proposing specific measures to ensure the proper trial of civil cases involving COVID-19 epidemic in accordance with the law, safeguard people’s legitimate rights and interests, maintain social and economic order and safeguard social fairness and justice.