All posts by Supreme People's Court Monitor

Susan Finder has been observing the PRC Supreme People's Court for over 20 years, and was the first person to engage in a close analysis of its operations. She taught Chinese law and other subjects in the Law Department of the City University of Hong Kong, before putting her knowledge to work in the China practice group of Freshfields Bruckhaus Deringer, one of the first international law firms to recognize the importance of the China market. She had the good fortune to study with three of the early pioneers of Chinese legal studies: Jerome Cohen, R. Randle Edwards, and Stanley Lubman and to have many leading practitioners and legal academics among her classmates at Harvard Law School (J.D.) and Columbia Law School (LL.M). Susan Finder speaks and reads (Mandarin) Chinese and Russian and some German.

Why is assigning responsibility for wrongful convictions in China so difficult?

d397e647d9fea2da22ef78a1f4a2ecc6At least two recent articles in the Chinese media provide some answers to the question of why assigning responsibility (within the courts) in wrongful conviction cases (known in China as “mistaken cases”) is so difficult. ( A recent  New York Times article has previously discussed the question as well and provided commentary by several well known authorities.) This brief blogpost looks at these two recent articles, which provide additional insight.

  1.  “Russian doll” system of committee decisions

The first response can be found in an article in the official Chinese press, published 20-21 February,  entitled “China’s judicial reform stepping into a deep water area facing people, power, and money.” The article sets out a response to the dissatisfaction of the public (and experts), which captures, in officialese, the core of the reason–decisions in high profile court cases are made in through a “Russian doll” (Matryoshka, the Russian nested doll) set of committee decisions.

Russian nesting dolls (from Wkipedia)
Russian nesting dolls (from Wikipedia)

“For a long time, Chinese judicial organs [referring both to courts and procuracy] have internally formed an administrative work system.  For example internally, in the courts, cases are approved and checked on by division chiefs and heads of courts level by level, and it is the person with the highest administrative position who has the final say, which created the situation in which the persons hearing the case do not decide it, and those deciding the case do not hear it.  This not only affects judicial efficiency and justice, it also makes it difficult to pursue responsibility for mistaken cases.”

    长期以来,中国司法机关内部形成了一套行政化的工作机制,比如法院内部,案件由厅长、院长层层审批把关,由行政职位高的人说了算,造成审者不判、判者不审的局面,不仅影响司法效率和公正,也难以追究错案责任。

What this means in plain English is that Chinese courts exercise an administrative system in which all cases are approved by division chiefs or higher.  For major cases, as well as cases in which the death penalty is proposed to be imposed, the case is forwarded to the judicial committee of the court.  As I wrote over one year ago, although this has not been mentioned, judicial committees must have approved the original decisions in a number of cases recently revealed to have mistaken, such as:

the 1996 execution of Huugjilt, in Inner Mongolia;
The 1995 conviction of Tian Weidong, Chen Jianying and others in Hangzhou, Zhejiang.

One layer of the Russian doll is the judicial committee. In that December, 2014 blogpost, I described how judicial committees operate (and some proposals for judicial committee reform).  Court legislation states that these committees “practice democratic centralism” and that their task is to “sum up judicial experience and to discuss important or difficult cases or other issues relating to judicial work.”

The reason that the panel that hears the case must follow the decision of the judicial committee is that judicial committees are designated as the “highest judicial organ” within a court and implement the principle of democratic centralism.  Wang Bin, a Nanjing judge whom I quoted in that blogpost,  stated that judicial committee members [made up of the court leadership] have neither the opportunity nor the time and energy to learn more about the specific circumstances of each case.Members are not required to state their view and rationale before voting.  Decisions are made by a simple majority.   Additionally, as I implied, during judicial committee consideration, members are aware of their bureaucratic rank vis a vis the court president and vice presidents.  As Professor He Xin of City University noted in his study of judicial committees, since the decision is made collectively [by the judicial committee], no single committee member is held personally responsible.”

What is implied by the administrative system described by the statement in the official media is that the local political-legal committee or other Party authorities may liaise with the court leadership concerning high profile cases.  That is the next layer of the Russian doll, and may involve higher level Party authorities.

Professor He’s study found that judicial committees had in many cases succumbed to external influences, while my own (more limited sample) found that external pressure was sometimes resisted.  Pressure by local political-legal committees was likely involved in some of these mistaken cases, but liability is not pursued, for a similar rationale as Professor He’s–since the decision is made collectively, no one is held personally responsible.

What effect will the 2015 regulations aimed at reducing official interference in court cases have on this practice?  As noted in this earlier blogpost, one of those regulations does not require the recording of certain types of guidance–that of “Party and government organs, professional associations, social public interest organizations and public institutions with administrative functions in accordance with law retained or permitted by people’s courts to follow the working procedures to submit consultative opinions in cases of national interest or societal public interest, may be not entered into information archive on prying, but relevant materials shall stored in the case file for future reference.”  But will documents issued by Political Legal Committees at various levels really be placed in case files and made accessible to lawyers?

2.  Why does affixing responsibility in mistaken cases take so long?

The author of the second article,  published in a popular legal Wechat public account highlighted earlier, suggests reasons that it often takes 10 or more more years for mistaken cases to be redressed, and proposes that the SPC and SPP increase their staffs to review mistaken cases:

Ten years is the time it takes for two terms of the [local] Party Committee and the heads of the court and procuracy.  That means that the heads of the Party Committee and court/procuracy have changed at least once or twice… [Why won’t it take less time?] It is because when the leaders who have had the final say still have their positions,…if they reverse the mistaken case and one can well imagine that they will not want to overturn a case in which they had the final say…There is hope …only when the leaders have retired, have become old or passed away, and a new leader is in position and takes the matter seriously.

 

 

More on Justice Scalia and what he means to the Chinese legal profession

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Judge Jiang

Followers of this blog are likely to have seen the New York Times (Chinese version) and Wall Street Journal stories on Justice Scalia and what he means to China.  At least two additional articles are worth mentioning:

Judge He Fan published an article by a former Shanghai judge and current Fulbright Scholar on her experience paying her respects to Justice Scalia lying in state at the Supreme Court, with the following comments:

While we sigh with regret with every “model laborer” or “advanced” [worker], here [in the US] the President announced to the entire people that the late judge was one of the Supreme Court’s most important judges and thinkers, and will be remembered by history.

当我们还在为每一位“劳模”或“先进”扼腕叹息时,这里的总统向全国人民宣布逝去的法官毫无疑问是最高法院最重要的法官和思想者,将被历史所铭记

Judge Jiang Qiang of the Supreme People’s Court in his Wechat account (junnylaw) desribed how American legal controversies are relevant to Chinese judges.  His Wechat post contains an excerpt from one of Justice Scalia’s lectures, included in the book Judges On Judging. (Judge He Fan translated the book, previously discussed this blogpost.)

Judge Jiang prefaces the excerpt with the following comment:

Although we here cannot use the Constitution as the basis of a judgment, American controversies concerning Constitutional interpretation can still provide a reference to us here in principles and techniques in interpreting areas of [Chinese] law.

(虽然我们这里的宪法不能作为裁判依据,但是美国关于宪法解释的争论,仍然能为我们这里关于部门法解释的原则和技术提供参考.]

Farewell to Justice Scalia from the Supreme People’s Court

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Judge He

The US Supreme Court holds a special fascination for many members of the Chinese legal community, including some members of the Supreme People’s Court.  Judge He Fan of the judicial reform office of the Supreme People’s Court, who has translated eight or nine books on or relating to the US Supreme Court, published on the morning of 14 February a moving (and accurate) profile of Justice Scalia on his Wechat public account that (as of the evening of 14 February) had received over 60,000 page views.

Some phrases from He Fan’s profile for Chief Justice Roberts to consider when he writes his eulogy:

  • He (Justice Scalia) rode a crane to the West (他已驾鹤西去)(a phrase meaning he passed away–in traditional Chinese symbolism, a crane takes the souls of the departed to the (Western) heaven);
  • Whether you love him or hate him, everyone must admit that Antonin Scalia was the most influential contemporary American judge (无论爱他还是恨他,所有人必须承认,安东宁·斯卡利亚是对当代美国法律影响最大的大法官。
  • Farewell, Justice Scalia (别了,斯卡利亚大法官).

 

First quarter 2015 bankruptcy cases in the Chinese courts

Continuing my series on bankruptcy law, this blogpost gives a quick report on 2015 first quarter bankruptcy cases in the Chinese courts, drawn from this report (including the charts used).

Bankruptcy cases accepted, by province
Bankruptcy cases accepted, by province

During that period, the Chinese courts accepted 264 bankruptcy cases.  Jiangsu, Zhejiang, and Guangdong had the top number of cases, followed by Shanxi, Anhui, and Hunan.  The top bar is cases is the rest of the country. d5015987-bb7f-4ee4-812a-e711a3264557

The piechart sets out the percentage distribution of cases by province (the largest percentage is from the rest of the country).

A listing of the courts that have accepted the most bankruptcy cases bears out earlier analysis on this blog about the Shenzhen courts (Shenzhen is the court that has accepted the most bankruptcy cases in the country, with Zhangjiagang (Jiangsu Province) in second place.

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As for the types of cases, the piechart below shows that most cases (about 2/3s) were bankruptcy liquidation cases, followed by reorganization (about 1/3), with very few settlement cases.  This article explains the three different types of cases.

d5015987-bb7f-4ee4-812a-e711a3264557On the geographical distribution of the liquidation cases.the piechat above shows that most arose in Jiangsu Province (about 23%), with Guangdong, Zhejiang, Shanxi, and Anhui Provinces following in descending order.  The 40% is from the rest of the country. Several cases involve multi-tiered, overlapping layers of complex entities (as elsewhere in the world), leading Chinese courts to consolidate the bankruptcy cases of several related companies (this Harvard Law School article gives a US bankruptcy perspective on consolidation).3be5b38d-70a0-4ebd-bdae-3472f9de09ae

On the geographical distribution of the reorganization cases, the piechart above shows that greatest proportion of reorganization cases were in Zhejiang (25%) (the site of at least one pilot court for bankruptcy cases), followed by Anhui, Jiangsu, Shandong/Shanxi) (the 30% is for the rest of the country).

As mentioned previously, the Supreme People’s Court expects to see an upturn in bankruptcy cases, and I would expect to see initiatives in transferring cases from enforcement to bankruptcy (an outstanding issue for the courts) and proposed solutions to achieve more reorganization and settlement cases. These are likely to happen because (as mentioned previously) the Chinese government has committed to reducing the number of zombie enterprises.  Early this spring, a conference will be held in China on the trial of bankruptcy cases, where these issues are likely to be discussed. If the organizers (and funding) permit, I will attend.

 

Accessing Chinese legal developments through Wechat (updated)

logoWechat, as most people with an interest in China know, has become the preferred form of social media in China.  The legal community in China has taken to it too.

Some are official accounts of government entities, including the courts and others are public accounts (公众账号) established by companies, law firms, individuals, and other organizations. Ir  Each has its benefits for the user located outside of China.

To access these public accounts, it does not matter where in the world you are located, but you need a smart phone to install the Wechat app. The accounts can be accessed through “search official accounts” or “Add contacts” and typing in either the Wechat ID or the name of the account. The accounts can also be accessed through computer or table as well, by searching for the account in question.

The official government accounts enable the user to keep current on the issues and latest government position in that area of law–new policy, new legislation, and new reforms.  The Supreme People’s Court, for example, has one, as does the Supreme People’s Procuratorate, as well as their local counterparts.

Another category is the less official public accounts.   Some are affiliated with official organizations, while others are not, while others are in a grey area. The writing tends to be aimed at the professional, with less bureaucratic language.   Some accounts are aimed at practicing lawyers, more focused on civil and commercial law than criminal law or administrative law, but both can be found. Some accounts publish writings by the account holder, while others accept articles submitted by followers.  One very popular type of article is one that reviews the law and cases in a particular area of law.

Some of the legal public accounts that I follow (or are highly recommended by those that I know) are listed below.  The list has now updated with further information provided by a 31 January article in Empire Lawyers and Lawread on the top 10 public accounts. Please use the comment function (or email me) to suggest additional accounts.

  • Arbitration:  Wechat ID: cnarb1, account of Lin Yifei, mentioned in an earlier blogpost.  I highly recommend it to both practitioners and others interested in arbitration.
  • Labor law:Wechat ID: laodongfaku (劳动法库) (with over 200,000 followers (this is mentioned in Empirelawyers top 10; Wechat ID: ldfview (子非鱼说劳动法);
  • Civil law 海坛特哥 (haitanlegal), account of Chen Te, formerly of the Beijing Higher People’s Court, now a lawyer (高衫legal) [his earlier posts focused on medical law], Wechat ID: gaoshanlegal;  审判研究, Wechat ID: spyjweixin; 法客帝国, Wechat ID: Empirelawyers; 审判研究, Wechat ID: msspck.
  • Criminal law: 辩护人 (bianhuren1993); 刑事实务, Wechat ID: xingshishiwu, with over 200,00 followers; 刑事审判参考 Wechat ID: criminailaw.
  • Judiciary: There are many, among them are: 法影斑斓 , account of He Fan, judge in the judicial reform office of the Supreme People’s Court, Wechat ID: funnylaw1978 and JunnyLaw (JunnyLaw1977) the newly established account of Jiang Qiang, a judge in the #1 Civil Division of the Supreme People’s Court, so far, articles focusing on civil law issues.
  • Civil litigation, 天同诉讼圈, Wechat ID: tiantongsusong (in the top 10), established by Tian Tong & Partners), with over 250,000 followers;
  • International law: Wechat ID: ciil 2015 国际法促进中心
  • IP law–知识产权那点事, Wechat ID: IPR888888.  The posting of 30 January, for example, includes the Supreme People’s Court judgment 11 January in its retrial of the Castel wine trademark infringement case and an article on indirect infringements of copyright on the Internet.
  • Aggregators/General–智和法律新媒体, Wechat ID: zhihedongfang; 法律博客, Wechat ID: falvboke,  法律读品, Wechat ID: lawread, 尚格法律人, wechat ID: falvren888 (followed by at least 130,000 legal professionals). 法律读库 Wechat ID: lawreaders, followed by 500,000 (in top 10); 法律讲堂, Wechat ID: yunlvshi, established by a partner with the Yingke Law Firm (also listed among the top 10).

This linked article written by Chen Te discusses how legal professionals can market themselves through a public account as well as some of the issues of having a public account.

Accessing Chinese legal developments through Wechat

logoWechat, as most people with an interest in China know, has become the preferred form of social media in China.  The legal community in China has taken to it too.  Some are official accounts of government entities, including the courts and others are public accounts (公众账号) established by companies, law firms, individuals, and other organizations.  Each has its benefits for the user located outside of China.

To access these public accounts, it does not matter where in the world you are located, but you need a smart phone to install the Wechat app. The accounts can be accessed through “search official accounts” or “Add contacts” and typing in either the Wechat ID or the name of the account. The accounts can also be accessed through computer or table as well, by searching for the account in question.

The official government accounts enable the user to keep current on the issues and latest government position in that area of law–new policy, new legislation, and new reforms.  The Supreme People’s Court, for example, has one, as does the Supreme People’s Procuratorate, as well as their local counterparts.

Another category is the less official public accounts.   Some are affiliated with official organizations, while others are not, while others are in a grey area. The writing tends to be aimed at the professional, with less bureaucratic language .   Some accounts are aimed at practicing lawyers, more focused on civil and commercial law than criminal law or administrative law, but both can be found. Some accounts publish writings by the account holder, while others accept articles submitted by followers.  One very popular type of article is one that reviews the law and cases in a particular area of law.

Some of the legal public accounts that I follow (or are highly recommended by those that I know) are listed below.  Please use the comment function (or email me) to suggest additional accounts.

  • Arbitration:  Wechat ID: cnarb1, account of Lin Yifei, mentioned in an earlier blogpost.  I highly recommend it to both practitioners and others interested in arbitration.
  • Labor law:Wechat ID: laodongfaku (劳动法库) (with over 200,000 followers; Wechat ID: ldfview (子非鱼说劳动法);
  • Civil law 海坛特哥 (haitanlegal), account of Chen Te, formerly of the Beijing Higher People’s Court, now a lawyer (高衫legal) [his earlier posts focused on medical law], Wechat ID: gaoshanlegal;  审判研究, Wechat ID: spyjweixin; 法客帝国, Wechat ID: Empirelawyers; 审判研究, Wechat ID: msspck.
  • Criminal law: 辩护人 (bianhuren1993); 刑事实务, Wechat ID: xingshishiwu; 刑事审判参考 Wechat ID: criminailaw.
  • Judiciary: There are many, among them are: 法影斑斓 , account of He Fan, judge in the judicial reform office of the Supreme People’s Court, Wechat ID: funnylaw1978 and JunnyLaw (JunnyLaw1977) the newly established account of Jiang Qiang, a judge in the #1 Civil Division of the Supreme People’s Court, so far, articles focusing on civil law issues.
  • International law: Wechat ID: ciil 2015 国际法促进中心
  • IP law–知识产权那点事, Wechat ID: IPR888888.  The posting of 30 January, for example, includes the Supreme People’s Court judgment 11 January in its retrial of the Castel wine trademark infringement case and an article on indirect infringements of copyright on the Internet.
  • Aggregators–智和法律新媒体, Wechat ID: zhihedongfang; 法律博客, Wechat ID: falvboke,  法律读品, Wechat ID: lawread

This linked article written by Chen Te discusses how legal professionals can market themselves through a public account as well as some of the issues of having a public account.

Shenzhen leads the way in bankruptcy law reforms

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Shenzhen’s bankruptcy information platform

This very brief blogpost is reporting on bankruptcy law developments in Shenzhen.  The Shenzhen courts are often used as a venue for piloting reforms, and bankruptcy law is no different.  It is likely that the Supreme People’s Court (SPC) is aware of this.

The Shenzhen Intermediate Court held a press conference on 21 January  to announce that they had established a bankruptcy information platform (linked here) with information case guidance, filing guidance, guidance on procedures, bankruptcy case announcements, bankruptcy judgements, etc.  The Shenzhen court also released some recent statistics on their caseload.  In 2015, the Shenzhen intermediate court accepted 131 cases, up 105% from the year before, tried 283 cases, and resolved 82 cases (up 26% from the year before). On the timing for cases to be resolved, as mentioned in a previous blogpost, bankruptcy cases tend to take a long time to be closed in the Chinese courts.

The bankruptcy platform is likely to be a model for other courts around China and fits nicely with the other “informatization” initiatives of the SPC.  Having a single platform should make it easier for bankruptcy practitioners (as well as buyers of distressed assets).  For those of outside of the Chinese court system seeking to understand what is happening, it will provide more information for us to consider.
The cases in Shenzhen accounted for 40% of the total bankruptcy caseload in Guangdong.  Although national statistics for bankruptcy cases in 2015 have not yet been released, when compared with 2014 (and presuming China had more cases bankruptcy in 2015), Shenzhen accounts for a significant proportion of bankruptcy cases. That is likely not a sign of weaker companies in Shenzhen, but that the Shenzhen government is more willing to see companies go through bankruptcy procedure.

 

Bankruptcy: What to expect in 2016 from the Chinese civil & commercial courts (II)

imgres-1As readers of this blog know, in recent years, the Chinese courts have had very few bankruptcy cases. Judges of the Supreme People’s Court (SPC) predict that will change in 2016.  Why (and where) do they say so? What guidance is the SPC giving Chinese bankruptcy judges? What else do we know about bankruptcy cases?

Why more bankruptcy cases?

At the 8th national conference for civil and commercial judges (discussed in an earlier blogpost), Judge Yang Linping of the #2 Civil Division revealed that the SPC expects an upward trend in bankruptcy cases because the Economic Work Conference at the end of 2015 called for quickening the clearance and exit of “zombie companies” through transfer of ownership and bankruptcy.

What is the guidance from the SPC?

Among the guidance from Judge Yang:

  • Make it easier for companies to go into bankruptcy proceedings, while not using the new filing system.  Shenzhen, one of the local courts that has heard a significant proportion of bankruptcy cases, issued local court guidance in May, 2015 on the filing of bankruptcy cases that the SPC is likely considering.
  • Distinguish real bankruptcies from fraudulent ones, in which the bankrupt enterprise “maliciously” seeks to defeat its creditors;
  • Courts hearing bankruptcy cases should monitor bankruptcy administrators to be sure they are recovering assets;
  • Review the reasons for the bankruptcy to see whether criminal conduct was involved in the collapse of the company;
  • Higher level court should monitor the way lower level courts handle bankruptcy cases;
  • Use bankruptcy reorganization procedures where appropriate, particularly for larger scale companies that have operational value.

It would not be surprising to see further guidance from the SPC as the year progresses.

What else?

How to deal with the collapse of real estate companies (highlighted in a previous blogpost) is likely high on the list of difficult issues for Judge Yang and her colleagues to consider.  The Zhejiang courts have already issued detailed guidance on the bankruptcy of real estate companies.  A conference on real estate companies and bankruptcy was held in Zhejiang, just after the 8th civil and commercial judges conference, attended by a senior SPC bankruptcy judge, bringing together bankruptcy judges, practitioners, academics, accountants, and financiers. The effect on migrant labor construction workers was likely on everyone’s minds as well, as bankruptcy cases must be handled with an eye to maintaining social stability.

The official media has predicted a wave of shipping company bankruptcies in 2016.Several Chinese shipping companies went into bankruptcy in 2015.

We are likely to see more bankruptcies among Chinese P2P lending platforms. According to media reports late in 2015, 270 failed in the last year.

 

 

 

 

Supreme People’s Court upgrades its database

Screen Shot 2016-01-07 at 7.27.12 AM.png

This short blogpost is just to bring to the attention to the world outside of China that the Supreme People’s Court (SPC) has substantially upgraded its case database, enabling users to search by keyword, cause of action, party, court, lawyer, law firm, full text (or facts, headnotes).  The database can be accessed here.  The SPC has required higher, intermediate courts and some basic level courts to upload their judgments on its database (with certain exceptions). The military courts are an exception, although senior military legal academics are advocating greater transparency for the military courts.

Basic level courts in the more developed coastal regions have gone first, with other areas following as they have the technical ability to do so.  The higher people’s courts issue their own implementing regulations to guide their local courts (see regulations mentioned by an Inner Mongolian court). Local courts issue their own guidance in implementing the SPC system, such as this guidance from an Inner Mongolian county court, where the court leadership (court president/Party secretary and the other Party group members (the leaders of divisions of the court)  is leading  the implementation.

Although judgments in sensitive cases are often not uploaded,  for the vast majority of cases (that do not fall into that category), the SPC database remains a rich source of understanding how the Chinese court system is operating, through (for example) a focused search of a  specific type of case, from rape to breach of contract to challenge of public security penalties, to enforcement of arbitral awards.

What to expect from Chinese civil & commercial courts in 2016 (I)

top-happy-new-year-2016-wallpaperIn late December, the Supreme People’s Court (SPC) held its 8th conference for civil and commercial judges, gathering together senior court leaders from around the country and from both civilian and military courts responsible for a broad range of civil and commercial issues. Speeches of two senior SPC judges responsible for civil and commercial matters, as well as a draft conference summary have been circulating among Chinese legal professionals.  What is the relevance of all of this to the world outside of the Chinese courts, particularly to the world outside of China?

It is relevant for several reasons:

  • The court conference illustrates the role of the SPC in the Chinese political legal system and its relationship with other institutions;
  • As in other legal systems, the Chinese courts are an individual or company’s  last resort for resolving disputes;
  • Those disputes highlight major issues in the Chinese economy and society.  The slowdown in the Chinese economy is already affecting the rest of the world, and the difficult issues for the courts signal where economic problems are.  Social issues have a more indirect impact on the outside world, but still affect foreign businesses and institutions.

The phenomenon of the court conference (and conference summary)

As this blog has highlighted earlier, the Chinese government regularly organizes conferences to ensure that subordinate entities are implementing the latest central policy on the matter as well as to harmonize local practice.  This is true of the courts as well as the food safety authorities.

Because the SPC is one of several central political legal institutions, the speakers included Meng Jianzhu, head of the Central Political Legal Committee, and participants included representatives from the Central Political Legal Committee, the Legal Work Commission of the National People’s Congress, the Legislative Affairs Office of the State Council, and other central legal institutions.

The conference summary, now circulating in draft form, is a type of SPC official document (see the SPC’s regulations on the subject), classified as a “normative document” and often address new issues or areas of law in which the law is not settled.  Under SPC rules, it can not be cited as the basis  of a court judgment but guides how lower courts consider the issue.

As to why the SPC organized the conference, the vast majority of Chinese court cases are civil and commercial. At the conference it was revealed that 80% of cases resolved by the Chinese courts since 2008 are civil and commercial cases. For that reason, if the goal of the SPC is to make every person feel fairness and justice in every case (under Party leadership), the focus must be on doing a good job in hearing civil disputes.

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Judge Cheng Xinwen interviewed in 2014

What are the issues facing the Chinese courts?

Judge Cheng Xinwen, the head of the #1 Civil Division spoke about the issues civil  court judges need to monitor in 2016 (some of which have been mentioned in earlier blogposts) and the current official thinking on them (set out in the conference summary):

  1. Real estate, property and construction;
  2. Family;
  3. Torts;
  4. Labor;
  5. Agriculture;
  6.  Consumer protection;
  7. Challenges to enforcement action;
  8. Private lending.

This blogpost looks at some of the issues relating to real estate, property, and construction cases.

Real estate, property and construction cases

Real estate cases account for a substantial part of the caseload of the Chinese courts.  Trying them properly, according to the SPC leadership, is linked to implementing the government’s macro-economic policies. Cases are on the increase, particularly in third and four tier cities.  The market has switched from a seller’s to a buyer’s market in some second and third tier cities:  Some of the problems include:

  • developers suing to invalidate grant contracts (under which they purchase land for development) and seek the return of the land grant fees (upon which local governments depend);
  • Developers who are short of funds and are unable to hand over properties on time;
  •  Declines in property prices causing “mass incidents.” Local courts are directed to liaise with local Party and government authorities, and take steps to prevent chain reactions.  This 2014 article mentions incidents in Taizhou, Zhejiang province, a province where many cities have seen a deflating property market;
  • Many cases involve both real property and private lending, and include developers illegally fundraising, mortgaging or selling the same property several times;
  •  Property registration, ownership in common, and bona fide purchases, are difficult issues for the courts, and the SPC will issue further guidance in the form of a judicial opinion on these soon.

Construction cases account for a relatively small number of cases (about 100,000 annually), but they tend to be complex and involve large amounts of money. Issues with construction cases indicate big problems in the industry because of funding problems, causing quality problems in construction, many unpaid migrant construction workers and an increasing number of disputes. Among the problems:

  • construction contracts that should have been let out for bidding that weren’t;
  • construction contracts illegally subcontracted;
  • construction contracts illegally subdivided;
  • contracts in which a contract party should have had a construction qualification or planning permit.
  • Contract parties to these invalid contracts that seek to minimize their payouts under these contracts and seek to avoid the payment clauses (but the SPC states that those should be respected);
  • Unless a subcontractor’s migrant construction workers remain unpaid, courts shouldn’t disturb liquidated damage clauses to expand a project owner’s liability. With unpaid laborers, the project owner’s lability could be expanded to cover the amounts owed to the actual unpaid workers.

Courts are directed to balance individual and societal interests, to uphold social public interests and an orderly construction market.

At the conference, the SPC leadership promoted six slogans (i.e.principles) of:

  • protection of  property rights;
  • respect for freedom of contract;
  • upholding equal protection;
  • upholding the unity of rights and duties;
  • maintaining honesty and keeping promises;
  • promoting procedural and substantive justice;

Litigants of all types, domestic and foreign, corporate and individual will be able to come to their own conclusions about how well the Chinese court system delivers on these broad principles.

 

 

Supreme People’s Court Monitor’s 2015 year end report

images-2In 2015, the Supreme People’s Court Monitor had over 25,000 page views, from 140 countries (regions), primarily from:

  • United States;
  • Hong Kong;
  • Australia; and
  • Mainland China,

with the United Kingdom, Germany, and Singapore trailing closely. I am particularly honored to have so many visitors from China when WordPress blogs are often difficult to access there.  Visitors came from many of China’s neighbors (and all parts of greater China), including:

Macau, Taiwan, Philippines, Thailand, Laos, Cambodia, Vietnam, South Korea, Mongolia, Kazakhstan, Myanmar, Nepal, Pakistan, India, Bhutan, Russia,  Tajikistan.

Like my sister blog, China IPR, my followers include academics, students, journalists, government officials (and officials of international organizations) as well as practicing attorneys (in private practice, government service and with NGOs).  I am honored to have my blog listed as a Chinese law resource by Harvard and Yale Law Schools, Oxford Bodleian Library as well as many other universities.

I was honored to have been invited to speak about China’s judicial reforms by the Faculty of Law of the University of Hong Kong, University of Pennsylvania, Columbia Law School, and Guangzhou University, and the European China Law Studies Association, among other institutions.

 

“Improper discussions” of Chinese judicial reform are forbidden

 

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Home of Judges

One of my favorite Wechat public accounts, the “Home of Judges” (法官之家) was closed down earlier this month.  The public account had about 100,000 followers. (Wechat public accounts  are explained here.)  While some public accounts are used as corporate marketing platforms, “Home of Judges,” along with several other public accounts have become platforms for (primarily) young judges (and lawyers) to share their views, experiences, and analyses. The Home of Judges public account published articles by many local judges, many with their concerns and thoughts about different aspects of judicial reform, with other articles describing by current or former judges explaining why they left or were thinking of leaving the judiciary.  The account holder for the public account, Li Liang, a former Guizhou Higher People’s Court judge wrote:

I had a feeling that Home of Judges would be closed down–first the News Bureau of the Supreme People’s Court contacted the news department of my court, demanding that the name of the public account be changed, but the editor did nothing, then I heard that the internal reference service of the Supreme People’s Court SPC) carried some Home of Judges articles, then recently the Beijing News Department deleted articles.

法官之家被禁封了,其实最近即有预感,先是最高法院新闻局找到我院新闻处长,要求将公号改名,小编未置可否,后来听说最高法院内参连续刊载法官之家文章,最近北京新闻处长多次联系删稿,

An anonymous article by the Sword of Heavenly Peace (长安剑) (according to some sources a pseudonym for the Central Political Legal Committee set out a seemingly more official explanation of why the account was closed down.  The name of the public account was a problem, because the account holder had left the court.   However the same name (Home of Judges) is used for the name of a hotel in Beijing, apparently the Supreme People’s Court’s guest house (see the comments to this hotel review).

Others (including some other legal bloggers) have said that it was because the Home of Judges was “improperly discussing” judicial reforms (妄议司改), a variation of “improperly discussing Central policy (妄议中央)”, a violation of the Chinese Communist Party Standards on Integrity and Self Restraint.

Stepping into the shoes  of the Supreme People’s Court leadership for a minute, it seems likely that a public account with a large number of judges criticizing the judicial reforms approved by the Party leadership would make the SPC leadership uncomfortable.   Why?  Because it would indicate that they were not doing a good job of “uniting thinking” (统一思想)–uniting the judges of the lower courts behind policies drafted by the SPC that had been approved by central Party authorities.

Comments by a fellow blogger

Following the closure of the “Home of Judges,” one of its fellow bloggers commented on the current environment.   Zhao Jun, a judge of the Jiangsu Higher People’s Court, who has a popular (among the legal community) public account, under the pen name  Gui Gongzi 桂公梓,  explained why he hasn’t been writing legal articles:

Third and more importantly , with the fluttering banner of democracy and the rule of law more and more ambitious,  the space for speech is obviously  tightening.

三也是更重要的是,随着民主和法治的旗帜招展得越来越宏大,言论的尺度却显而易见地越来越收紧了也是更重要的是,随着民主和法治的旗帜招展得越来越宏大,言论的尺度却显而易见地越来越收紧了

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Comments from the outside

Chinese social media is an invaluable way to understand what is going on in the Chinese court system and Chinese law generally, enabling you to keep up with developments wherever you are.

It is a shame if public accounts such as “Home of Judges” are seen as a threat to the government rather than a way to understand what the younger generation of judges, prosecutors and lawyers are thinking.

The older generation?

The older generation of judges and lawyers, particularly those who have lived through the Cultural Revolution, comment privately that at this time,  the best approach is to say nothing.

Year end bonus from the Supreme People’s Court

images-1As highlighted in the last blogpost, the Supreme People’s Court (SPC) is issuing all sorts of documents in the rush towards year end, far outpacing the time available to the Supreme People’s Court Monitor to analyze them.   Some of the recent developments that merit closer scrutiny:

  • more model/typical family law cases (incorporating the ones highlighted in an earlier blogpost) and with many more involving domestic violence and cohabitation issues;
  • 19 model/typical contract cases, including several private lending cases, real property cases, etc.
  • 14 model/typical food and drug crime cases, including one involving a supermarket (I had written this on food safety raids earlier this year;
  • Five model/typical cases of refusing to implement court judgments/rulings;
  • Two model/typical cases on non-payment of wages (this is an issue of high priority for the government;
  • Ten model/typical fraud cases;
  • Updated sentencing guidelines for a broad range of criminal cases, including rape, picking quarrels, and fraud;
  • Guidance from the head of the #2 criminal division on principles for applying the sections of the recent amendment to the Criminal Law on bribery and corruption (in which is likely to be incorporated into a future judicial interpretation);
  • An authoritative article by the SPC’s research office on the new terrorism crimes set out in the recent amendment to the Criminal Law;
  • approval by the SPC judicial committee (in principle) of the first judicial interpretation of the Property Law, which means most provisions are finalized, but the final draft is not set.  A recent draft discussed by the Civil Law Society was published recently. Several provisions address the issue of a “bonafide purchaser.”

 

Supreme People’s Court rushes to achieve year end targets

imgres-4The rush towards year end in the Supreme People’s Court (SPC), as in the business world, means a flurry of announcements of important developments, to ensure that the SPC meets its own performance targets.  Among the recent announcements are:

  • reform of the maritime courts, to make them internationally influential (this has both political and legal implications, blogpost to come);
  • approval by central Party authorities of the third round of judicial reform pilots, and the holding of a large scale meeting of representatives from the Leading Group on Judicial Reform with the SPC and Supreme People’s Procuratorate (SPP),  on the focus (personnel reforms) and roll out of these projects.  Jiang Wei,deputy director of the Office of the Central Leading Group for Judicial Reform, spoke along with his SPC and SPP counterparts.  Political legal committee secretaries from the pilot areas attended, along with court and procuratorate officials.
  • Reform of the family court system, announced at a conference held in Guangzhou, attended by Justice Du Wanhua, highlighting that the rush of judges to meet performance targets (closing cases) Iamong other factors) has had a negative effect on children, elderly, disabled, and women.  The SPC likely published typical/model family law cases in November (discussed in this  blogpost)  because pulling together those cases was part of the preparations for the Guangzhou conference;
  • progress report and further plans on improving judicial assistance (separate but related to legal assistance), with the release  of the2014  multi-agency document (Central Political Legal Committee, SPC, SPP, Ministry of Finance, Ministry of Public Security, Ministry of Justice), stating that the central government had allocated 700 million RMB for judicial assistance and local governments  1.7 billion RMB, targeted at financial assistance for victims of crimes and others, with funds allocated to about 80,000 in 2014, (certainly a fraction of what is needed)
  • long pronouncement by Justice Shen Deyong on the “standardization” of the courts, citing the important status and important role of the judiciary in the governance of the country, but the growing contradiction between the needs of the people and  judicial resources and judicial capacity, decrying the lack of “top level design,” and calling for the implementation of related reforms.

This list will be supplemented later this month, as further announcements are made.

 

Update on case filing reform and other challenges for Chinese courts and judges

Case filing hall in a Jingdezhen court
Case filing hall in a Jingdezhen court

In late November, the Supreme People’s Court (SPC) held a press conference on case filing (docketing) reforms to announce a 32% increase in civil and administrative case filings, year on year, putting a positive spin on what is a highly stressful situation for frontline judges, but a generally positive development for litigants and their lawyers. There are many stressful factors for Chinese judges and the Chinese courts, leading many judges to leave or contemplate suicide, and others to vote with their feet.  This blogpost will look at some of the recent developments:

  • Large number of cases;
  • Increasing fraudulent litigation;
  • Dysfunctional performance indicators that refuse to die.

The three issues are interrelated.

Case filing (docketing) reforms

On the case filing reforms, through the end of September, civil cases are up almost 23%, and administrative cases up 76%, while private prosecutions of criminal cases are up 60%,The most litigious provinces are ones with highly developed economies: Jiangsu (608,000 cases), Zhejiang, Shandong, Guangdong (558,000 cases).  The Supreme People’s Court caseload was up as well, with 6852 cases accepted through September, up 58%, estimated to reach 15,000 cases by year end.

Fraudulent litigation

Fraud of all sorts is a growth industry in China, especially with the worsening economy. Creative thinkers have come up with ways to use the court system to defeat or at least delay or avoid creditors.  In recent years, the Chinese courts have been faced with an increasing amount of fraudulent litigation, now criminalized on one of the unnoticed provisions in the 9th Amendment to the Chinese Criminal Law (new Article 307-1).  However, the law does not set out a definition, although some provincial court have issued guidance.  Usual factors include litigation based on: fabricated facts, fabricated arbitration award, or notarized documents, or collusion between the parties  or third party to use fabricated facts, false evidence, false documents, destruction of evidence, provide false documents, expert opinion and other means to avoid debt or improperly gain assets.

With the reform to the case filing system (described in this earlier blogpost), fraudulent litigation on the increase. For this reason, the SPC recently issued its first ruling on fraudulent litigation, imposing a penalty of 500,000 RMB on two Liaoning companies, to signal to lower court judges that they need to monitor case filings for indications of fraud.  Fraudulent litigation can be found in various types of cases, and in the maritime as well as local courts.

On fraudulent litigation in the maritime courts, an experienced maritime judge provided the following typical scenario: because the Chinese shipping industry is in a downturn (see these articles, for example), a ship owner who is unable to repay their debts (and finds that the size of the mortgage is more than the value of the ship) will conspire with their employees to bring a claim for unpaid wages, because under the Special Maritime Procedure Law, those claims take priority over the mortgage.  The employees and shipowner will split the proceeds from the claim, shortchanging the bank and other creditors.

According to Zhou Qiang’s report to the NPC, about 3400 cases of fraudulent litigation were discovered in 2014.  According to studies done by provincial courts in recent years,  104 cases were found in 2011-2012 in Jiangsu, and 940 in selected courts in Guangdong during 2001-2009.

With the case filing reforms and soft economy, these numbers are likely to rise. Readers (of Chinese) interested in diving further into this topic should read this article.

Dysfunctional  performance indicators

Writing in People’s Daily, Judge He Fan, head of one of the departments of the SPC’s Judicial Reform Office, highlighted that “some leading cadres” wanting to achieve year end “pretty data”  are still imposing unrealistic year end performance targets, forcing front line judges to work unreasonable hours (and also  diminishing case quality). These performance targets were abolished in 2014, as highlighted in this blog.

As for why Chinese judges are leaving in such numbers and why they are so unhappy, that will be the subject of another blogpost.

 

Some typical Chinese family law cases in 2015

dd9a8f4c1a39797ea5a7e4843c8a2724 (1)Each month (as highlighted this earlier blogpost), the Supreme People’s Court (SPC) issues typical cases at a press conference. In November, family law cases were the center of attention for a change and were briefly reported by the South China Morning Post.

This month’s typical cases were selected from the Beijing, Shandong, and Henan courts and are aimed at educating the general public rather than legal professionals.  The cases, statistics, and comments from the Supreme People’s judiciary  give a glimpse into the social, economic, and cultural changes that have affected Chinese families over the past 20 years and reflect the differences between rural and big city life.

Statistics

Judicial statistics is one of the areas slated for reform by the Court, which has the potential to improve (or not) the situation for analysts of the Chinese court system.

  • 4,000,000 family law cases have been heard in the past year and 10 months. President Zhou Qiang reported earlier this year that  1,619,000 family law cases were heard in 2014, accounting for about 30% of civil cases, which would mean that over 2 million cases had been heard in the first 10 months of 2015 (assuming the cases are classified the same way in both years).
  • 124981 family law cases have been heard in the Shandong courts this year, constituting about 24% of all civil cases.
  • In the Beijing courts, 38, 619 first instance family law cases were heard in 2014.

Issues for Chinese judges

The press release hinted at some of the difficult issues facing Chinese family law judges nationally, which are many of the same facing their counterparts in Shenzhen:

  • Division of property when spouses divorce, which means both division of family home(s) and family business(es).  Parents often provide some or all of the funds for the home, before marriage, and the controversial rule set out in the #3 Marriage Law Interpretation
  • Child custody;
  • Divorce after a second marriage.

Divorcing spouses are increasingly antagonistic, making it difficult for judges to mediate a settlement, which is the preferred resolution for Chinese judges.

Summaries of some of the 30 typical cases

Must engagement gifts be returned? A case from a rural court in Shandong

Zhang and Zhao were introduced by Zheng, and became engaged. Zhang gave Zhao 40,000 RMB cash, four rings, and other gifts as betrothal gifts (彩礼).  The couple did not marry, and Zhao refused to return the cash and gifts. Zhang sued in the Jining District Court.  At trial, Zhao returned the 4 rings.  The Jining Court ordered Zhao to return the cash but not the gifts.

The SPC commentary noted that although the cash and other items are in form a gift, the legal consequences are different, and according to the #2 Interpretation of the Marriage Law, the gifts must be returned. Article 10 (1) of that interpretation addresses this situation: if the court finds in pleadings a demand for the return of the betrothal gifts given to the other party according to the traditional practices because the parties fail to register their marriage, the people’s court shall uphold the demand.

Concealing property from ex-spouse (Beijing)

Sun and Li divorced in 2004.  The arrangements the couple made were that the wife Li would have custody of the child, the formerly state-owned housing would belong to the wife, and the business, cars, etc. would belong to the husband, who would provide alimony and child support.  In the process of demanding child support from Sun in 2014, Li discovered that Sun had bought property during the marriage, but had concealed that fact from her. She went to court to demand that ownership of the apartment be transferred to her name. Sun said that the apartment was bought when the couple was living apart, he had told her, the divorce settlement provided that the business, cars, etc. belonged to the husband and besides the statute of limitations had lapsed years ago.

The Changping District court decided that because the apartment had been bought during the marriage, it was joint marital property and Sun could not provide credible evidence that Li knew of the property during the marriage.  Therefore the statute of limitations argument failed. The court decided that ownership of the apartment should remain with Sun, but that Li was entitled to half of its market value, or 1,400,000 RMB.  The couple appealed to the #2 Beijing Intermediate Court which upheld the lower court.

The SPC commented that because traditional attitudes of marriage for life have changed, there are more and more divorce cases.  In this case,  because Sun concealed the purchase of the apartment, under Article 47 of the Marriage Law that when the court partitions the property, it could allocate less or no part to Sun.

Does the non-custodial parent of a child born to an unmarried couple have visitation rights? (case from a rural Henan court)

Wang and Chai were introduced and subsequently had a wedding celebration according to local customs, but never formally registered their marriage. They lived together and Chai gave birth to little Wang.  Thereafter the couple separated.  The couple went to the Xun County court to resolve their disagreements about the child.  The court decided that Chai should have custody of the child, until the child is old enough to express her preferences.  A month later Wang went back to court to demand visitation rights.

The Xun County court relied on Art. 38 of the Marriage Law, concerning visitation rights of the non-custodial parent in divorce to decide that the father could visit the child the first Sunday of each month from 9 am to 5 pm.

The SPC commented that visitation rights are a basic legal right of a non-custodial parent to have contact, visit, and live together for short periods, but visitation must be done in a way that does not affect the normal life and studies of the child.

Do the elderly have the right to support from their children? (a Beijing case)

Seventy seven year old Mrs. Liu was in poor health and in financial difficulties.  She sued her two children in Beijing’s Xicheng District Court to require them to provide her support in the amount of 900 RMB monthly.  The daughter said she had no income and the son said his after- tax income was only 6500 RMB and refused.  The court ordered the son to pay 800 RMB per month and the daughter 500 RMB (on the grounds that based on her work history she must have income).

The SPC commented that grown children have the legal duty to support their parents [under the Law on the Protection of the Rights and Interests of the Elderly], but the amount will depend on the elderly person’s cost of living, the health of the elderly person, and life style, and if the elderly person has several persons to look to, the amounts each will need to pay in support will depend on each person’s financial situation.

 

 

 

 

 

 

 

 

 

 

Brief report on bankruptcy litigation in the Chinese courts

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Declaration of bankruptcy meeting of Guangdong company

The soft Chinese economy means that an increasing number of Chinese companies are in financial difficulties.  But, according to the Supreme People’s Court, the number of bankruptcy cases have been decreasing rather than increasing, with over a thousand cases accepted nationally in 2014.  Earlier this fall, the All China Lawyers Association held a conference for its bankruptcy practitioners, to which were invited the head of  #2 Civil Division of the Supreme People’s Court, Judge Liu Min (principal author of the bankruptcy law judicial interpretation),  KPMG partner, Cao Chunye, SASAC officials, and others.  What more can be said about the decrease in cases, why the decrease in cases and what is the Court doing about it?

Some Statistics

According to a 2014 Court study by Ma Jian of the Court’s Research Office, from 2003-2012, the Chinese courts accepted about 40,500 bankruptcy cases, decreasing an average of 12.23% a year, only increasing in Henan and Tianjin, which Ningxia, Hunan, Hebei, and Qinghai decreasing at a rate of 20% a year or more. In almost 70% of cases, the debtor company applied for bankruptcy, with only 30% creditor initiated.  The Court analysis was that creditors didn’t have a clear picture of the business operations of their creditors, or still believed that the debtor would be able to repay, or believed that because asset recovery in bankruptcy was so little, they did not want to bother initiating bankruptcy. Practically all the companies in bankruptcy proceedings were domestic companies, with 55% state owned companies, 26% collectively owned. Almost half of the cases took a year or more to resolve.

Why?

Ma Jian set out the following factors:

  • In a Chinese bankruptcy, the judge has more of a societal function than legal.
  • Most companies misunderstand bankruptcy law;
  • Local government interference in the acceptance, and trial of bankruptcy cases, with local governments closing down companies through administrative means, leaving unresolved debts and workers who have not been resettled;
  • Many obstacles stand in the way of realizing assets: 1) many companies in financial trouble have old equipment that is not worth much on the market or no one appears at the auction; 2) many SOEs occupy allocated land (land given by the government for free), and when the government takes possession of the land, it is impossible to sell the buildings on the site; 3) some companies use collective land, so that only other collectively owned entities can purchase the buildings built on the land.
  • It is very difficult to recover bankruptcy assets.  The debts are generally very old, and often times the statute of limitations has expired; additionally it is often difficult to find company debtors;
  • Resettlement of workers, is the primary issue to be considered in a bankruptcy case, particularly with the social safety net in such a fragile situation (according to Ma Jian).
  • Additionally, reorganization is very difficult to do, with multiple government approvals, difficulties in obtaining creditor agreement, difficulties in changing a company’s line of business, etc.
  • KPMG partner Cao Chunye highlighted the unfavorable tax treatment of companies in bankruptcy restructuring;
  • As to why courts do not want to accept cases, Ren Yimin of the All China Lawyers Association Bankruptcy and Restructuring committee mentioned that a bankruptcy of private company may cause a chain of other companies to fail, and it is difficult to resolve a chain of linked cases.

Measures

Some of the many measures under consideration or being explored include:

  • Moving bankruptcy cases out of the local courts where the company is located, to centralize jurisdiction in certain courts;
  • Making it easier for creditors to switch from enforcement proceedings to bankruptcy;
  • Improving the system for bankruptcy administrators.;
  • Looking to have a fast track system for small cases;
  • Exploring better restructuring systems.
  • Looking to foreign law, particular US bankruptcy law, for concepts that could be used to improve the bankruptcy system.

(Those with a greater interest in this topic can review this law review article–in the current situation, this area of law deserves closer attention by concerned professionals than it is currently receiving.)

Central Political Legal Committee issues model cases on leadership interference with the Judicial process

0d338744ebf81a4cfaf247bad42a6059242da685Five model cases on interference with the judicial process are are making the headlines today on the Communist Party’s Central Political Legal Committee’s website (www.chinapeace.gov.cn) (and therefore on its press outlet, Legal Daily as well as one of the Supreme People’s Court’s websites). It is the first time the Central Political Legal Committee has done so, but is unlikely to be the last.

The practice of issuing model cases in the courts has been discussed previously on this blog, but these have been issued to create an example (in this case a senior judge) to scare others into compliance (“kill the chicken to show the monkeys” (杀鸡儆猴)).

The first of the five cases, and the only one from the courts, is that of Chen Hai’ou, chief judge of the #2 civil division of the Beijing Higher People’s Court (and judicial committee member). Chen seems to be well-known as a bankruptcy law specialist and was likely known to counterparts on the Supreme People’s Court.

According to the press release, Chen received an administrative penalty and has been transferred away from doing trial work because he involved himself in a case that was not within his authority In violation of March, 2015 Central Political Legal Committee regulations on judicial personnel prying into cases.  Some more specific conflict of interest allegations against Chen remain posted on the Internet, although other allegations (and photos) on other sites have been taken down.  It seems likely that these led to his downfall.

Fourth Plenum and Chinese military legal reforms

From time to time, I write on Chinese military legal developments, an outgrowth of my interest in one of the few Chinese courts without a internet presence, the military courts.  I recently published an article on the military legal reform document published earlier this year (full text not available), looking at some of the related academic discussions and relating it back to the 4th Plenum Decision and the 4th Five Year Judicial Reform Plan.  I would welcome any comments or corrections any readers might have.

Should the retirement age for Chinese judges be raised?

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President Zhou Qiang, speaking at a national court conference

The retirement age of Chinese judges, is 55 for women and 60 for men, the age when judges in many other jurisdictions are in their prime. US Supreme Court judges have lifetime appointments, while compulsory retirement ages include:  Germany–68, Australia, 70, Hong Kong, 65 (with provisos).  The discrepancy between China and the rest of the world has not escaped NPC deputies as well some of the more senior members of the Chinese judiciary.  Many of them have been working in the courts since the early 1980’s, and are now facing retirement.

As work begins on a re-draft of the Judges Law (as highlighted in an earlier blogpost), one of the issues that has been repeatedly mentioned in the Chinese legal press is raising the retirement age and/or permitting judges to go on “senior status.” Among those speaking out include President of the Supreme People’s Court, Zhou Qiang, presidents of provincial high court of Hubei, Zhejiang among others, as well as the president of the National Judicial College. The 4th Five Year Judicial Reform Plan mentions raising the age for becoming a judge,but is silent about retirement.

The issue of retirement for judges relates to larger issues, such has separating the treatment of judges from other civil servants, raising the general retirement age for judges, and the type of qualifications that judges should have, and of course compensation.

The president of the National Judicial College published a long article in the People’s Court Newspaper (affiliated with the Supreme People’s Court) in August of this year calling for a re-think of career paths for judges. He noted (among other issues) that many judges are “three gate cadres” (三门干部) who have gone from the gates of home, school, to the courts, and lack the necessary life experience.  (The article seems to be the public version of a talk he gave to a closed door conference on judicial reform sponsored by the China Academy of Social Sciences, reported here).

It is a waste of know-how and experience, particularly for women, who are forced to retire five years before men. The Chinese courts need to try to retain the talent that they have, particularly when the courts will be faced with an increasing number of cases relating to an ageing population. With Zhou Qiang and other senior court leaders backing delayed retirement, it appears the reform will eventually be implemented, but it is likely to be too late for those now close to retirement age.