Highest Individual Claim
Sichuan Province's famous pig farmer, Liu Dingguo, appealed to the provincial higher people's court for state compensation up to 7 million yuan (US$845,400) because of the court’s illegal distraint.
Liu Dingguo was born in a small village in Mianyang City, Sichuan Province. In the 1980s he earned his reputation as a pig baron nationwide, establishing the first privately run pig-farming research institute in Sichuan Province in 1987. In 1993, a dispute arose involving a company cooperating with Liu’s research institute since 1988, resulting in a 620,000 yuan ($75,000) claim for compensation against Liu. The court in Anxian County seized all the pig feed and nutritional additives in Liu’s research institute.
In September 1998 the county court passed a judgment rescinding the ruling given in 1993. In May 2003 the court confirmed its own illegal act of distraint. One month later Liu claimed state compensation from the court, for an amount up to 7 million yuan ($845,400). In August the same year, the court passed a ruling ordering the compensation of 861,600 yuan ($104,000), making this the highest state compensation ruling on record in the country. However, Liu was not satisfied with the amount, rejecting the payment and appealing to the Intermediate people’s court of Mianyang City for state compensation. On June 29 this year, the court ruled that Anxian County court compensate Liu’s research institute 520,000 yuan ($62,800) in direct economic losses.
Still dissatisfied, Liu has now sent his appeal for state compensation to the compensation committee of the provincial higher people’s court, still claiming 7 million yuan ($845,400). Liu said, “The point is not how much the compensation is, but what is considered fair. I could have been a billionaire if it weren’t for these past 11 years,” he lamented.
Biggest Compensation
In June 2003, the Shenzhen Municipal Bureau of Urban Planning and Land Resources awarded compensation of 8.7 million yuan ($1.05 million) to Shenzhen Nonferrous Metal Finance Co. Ltd. The biggest state administrative compensation case on China’s mainland, which drew unprecedented attention and lasted more than six years, thus ended in victory for the accuser.
According to the judgment of Guangdong provincial higher people’s court, the accuser in this case was Shenzhen Nonferrous Metal Finance Co. Ltd., with the Shenzhen Municipal Bureau of Urban Planning and Land Resources as the accused. The facts were that the accused, under the condition that it didn’t cancel the mortgage registration and didn’t take back the property right certificate, granted a new property right certificate of the same land and buildings on it. This caused overlapping of the property right certificates of the same property and the repetition of mortgage registration. Because of the illegal action of the accused, the accuser signed a mortgage loan of 8.7 million yuan ($1.05 million) with the Shenzhen Pakard Co. without knowing the real situation. It wasn’t long before Pakard Co. announced bankruptcy, making off with a sizable sum of money. This complicated case falls within the scope of state administrative compensation. The large amount of money involved makes this a rare case in China and serves to illustrate the progress being made in the Chinese legal system.
Life Prisoner Gets State Compensation
On July 7 this year, life term prisoner Liu Xiaowang gained state administrative compensation of 40,000 yuan ($4,830). This was the first adjudication in which a lifer gained state administrative compensation.
On the evening of September 18, 2001, public security and relevant authorities of Huanggang District, Wuhan City, cooperated to investigate and deal with illegal fireworks manufacturers within their area of administration.
When officials were transferring the confiscated illegal fireworks manufactured and stored by Liu Xiaowang, they exploded, causing the death of five policemen and injury to many residents. Liu’s wife was also killed and Liu’s triple-story house and other property were destroyed.
Later, Wuhan Intermediate people’s court sentenced Liu Xiaowang to life imprisonment and deprived him of lifetime political rights for his illegal manufacture and storage of explosives. Meanwhile, according to relevant evidence, this explosion was not caused by Liu’s direct action, but by friction caused when the fireworks were dropped while being removed by officials.
On December 13, 2002, Liu and his four children filed an administrative suit with the Huangpo District court, asking Huangpo public security authorities for administrative compensation. Wuhan intermediate people’s court ordered the Xinzhou District court to present a public trial. After being approved by city and provincial courts, Liu was permitted to participate in the trial as the accuser, because he had direct interests relating to this case.
Court of first instance deemed the action by the public security authorities confiscating Liu’s illegally manufactured and stored fireworks to be an official action. However, because of their carelessness for security and improper manner in which they carried out moving the fireworks, which led to casualties and loss of property, they were held responsible for their administrative actions.
In accordance with relevant regulations in the Law of State Compensation, the court judged that the public security authorities compensated Liu 57,988 yuan ($7,000) for his wife’s death and 57,369 yuan ($6,930) for loss of the house and other property, and also 38,640 yuan ($4,670) cost of living expenses for him and his children. Of these amounts Liu received 40,000 yuan ($4,830).
Compensating for Wrong Detainment
Lu Songde, former manager of Nanning City Transportation Co. Ltd., was wrongly detained for 272 days on a suspicion of bribery. On July 23 this year, Lu was awarded state compensation of 15,000 yuan ($1,811).
After investigation, the compensation committee of the Nanning intermediate people’s court found that on June 28, 2001, Nanning Xincheng District procuratorate took Lu into custody as a suspect in a bribery case, and on July 12 the same year initiated a public prosecution. On March 19, 2002, the procuratorate’s action against Lu was revoked, and Lu was released due to new evidence. The procuratorate dropped the case against Lu, meaning he had been wrongly detained for 272 days. On November 4 last year, Lu claimed compensation from the Xincheng District procuratorate but it was rejected. After reconsideration, Nanning Municipal procuratorate also rejected Lu’s compensation request in February this year.
The compensation committee of Nanning Municipal intermediate people’s court deemed that the decision taken by the procuratorate to drop the case against Lu was lawful confirmation that his detainment was wrong. The Xincheng District procuratorate shall, in accordance with the law, take responsibility for state compensation. According to the national average daily salary standard, Lu will receive compensation of 15,000 yuan ($1,810).
Compensation in False Porn Case
“We feel extremely sorry for the heartache this has caused you, and today we hereby apologize to you.” On the afternoon of December 30, 2002, secretary Sun Wei of the Discipline Inspection Commission of the Public Security Bureau, Baota District, Yan’an City, apologized to a man named Zhang allegedly involved in a pornography scandal that had captured the attention of the entire nation. In addition, relevant authorities awarded Zhang 29,137 yuan ($3,518) in compensation, promising him that they would deal with the people responsible for this.
On the night of August 18, 2003, Zhang and his wife, residents of Pigedu Village of Yan’an City, Shaanxi Province, were watching pornography in the privacy of their home, when police acting on a tip off, broke in without warning and took Zhang away. On October 21 the same year, Zhang was taken into criminal custody by Baota public security Sub-bureau of Yan’an City. The case became known as the “porn case” in China. On November 5, Zhang was released on bail and the case against him was revoked on December 5, 2003. The event had an enormous negative impact on Zhang. Going back home after being released from detention, Zhang did not speak much and always appeared tired. His wife asked a Beijing lawyer, Xiang Yang, to help them. Later, Baota District’s committee of politics and law, and the local government’s general office and petition department jointly formed a group to investigate the case. A few days later, leaders of the three departments, the litigant and the lawyer came to an agreement on compensation.
“This case was the fault of the police station, but it is attached to the branch bureau and we have to be responsible for it,” said Sun Wei. “This is a lesson for us and from this time on, we shall carefully analyze each case and draw inferences out of one instance. This also shows that our law executors need improvement.” Faced with an apology, Zhang showed no reaction, but his wife wept, releasing the pain and humiliation built up for so long. “As long as my previous healthy and lively husband would return, I would be happy,” she said.
(Beijing Review August 18, 2004)
