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2023-08-08

Lease Contract Dispute Case

The lawsuit of Tengfang

The case of a certain limited company (hereinafter referred to as a certain company) in Taizhou City suing the defendant Li and Li's father son over a lease contract dispute was filed with the People's Court of Jiaojiang District, Taizhou City, Zhejiang Province on January 15, 2007. A certain company claims that the two defendants have a father son relationship, Li is a retired employee of a grain management office in Jiaojiang District, Taizhou City, and Li is an employee of our company. Considering the housing difficulties of the two defendants, the company rented all the houses located at 209 Middle Street, two storefronts, one and a half dormitories, and one dormitory above 10 Lower Street to the two defendants, while symbolically charging an extremely low monthly rent of 8 yuan. Due to the company's use of the property for other purposes, the two defendants were notified to vacate the property in early 2006, and it has not been vacated until today. Due to the fact that the lease of the house is an indefinite lease contract, the lawsuit requires the termination of the lease contract with the two defendants, the vacating of the aforementioned rented house, and the payment of rent during the use period. The litigation costs shall be borne by the two defendants.

According to Article 232 of the Contract Law of the People's Republic of China, a certain company may terminate the aforementioned lease contract at any time. Therefore, for the two defendants, this is a case that will undoubtedly be lost.

There is a reason for the incident

After receiving a complaint from a certain company, the two defendants entrusted lawyer Zhou Hailong to act as their agent. After learning from the two defendants, this dispute has historical reasons. Li is a retired worker from a former grain management office. He started working in April 1956 and lives at No. 10 Xiajie, which is also the dormitory of the former grain management office employees. The dormitory I live in is assigned to Li by a certain grain management office, with a family of three generations and five people. I have rented a dormitory for employees of the unit for a long time, and the five people rent a house with an area of 36 square meters. I have been transferred to a grain depot as a cashier since 59 and have been living in the staff dormitory of the grain depot for 23 years. After the establishment of a grain management office in 1983, a five bedroom, two-story new grain station was built at 209 Zhongjie Street. The five rooms downstairs served as grain supply stations, and the upper floors served as employee dormitories. The second leader of a grain management office decided to ask Li to work at the grain station and allocate the dormitory upstairs (with an area of only 24 square meters) to Li for accommodation. In 1985, a grain management office built a three story apartment with six households in a grain depot at No. 10 Xiajie, serving as an employee dormitory. The distribution plan prioritizes elderly employees and later considers young employees who want to get married. The fifth leader did Li's ideological work and said, "Old Li, you are getting old, let the young employees get married. If your house is not enough for living, I will arrange another half room for you, and the stove will also be ready for you. From now on, you can live here. In 1987, with the implementation of the housing reform policy, the three story apartment was renovated, and the six employees living in it spent thousands of yuan to buy a house. Li joined a grain management office in August 1990 and lived in a dormitory with his father, Li. Later, Li got married and lived in a one and a half dormitory at 209 Middle Street. Li moved back to a dormitory at 10 Xiajie.

In December 2001, a grain management institute was restructured and established a limited company in Taizhou City, with 26 shareholders and Yang serving as the chairman. However, during the reform of the unit system, only 26 new employees participated in the restructuring meeting and were incorporated into the stock market. They did not invite retired employees from a certain grain management institute to participate, regardless of the historical issue of old employees not participating in the housing reform. During the restructuring process, there was no provision for a one-time housing subsidy for 8 retired employees of the enterprise. It is precisely the careless and irresponsible illegal behavior of institutional reform that has caused some retired elderly employees to reside in the dormitory of a former grain management institute for a long time.

After the establishment of a certain company, it only received rent and did not engage in any trading business, so it was decided to transfer assets. On June 23, 2006, Taizhou Shuguang Auction Company was entrusted to auction the entire assets of the company at a starting price of 5.18 million yuan, but the auction was unsuccessful due to no one bidding. In early 2007, the shareholders' meeting of a certain company decided to transfer the company to a certain supermarket through share transfer. The transfer contract requires a company to vacate all rental properties before it becomes effective. Li and Li have always been living in dormitories without any other housing, so they refused to relocate and caused a lawsuit.

Mingxiu Plank Path

After receiving the lawsuit, the two defendants requested to buy back their dormitory as a defense. One reason is that the two defendants have the right of first refusal as tenants. Because on June 14, 2006, in the Taizhou Business Daily, the auction announcement of Taizhou Shuguang Auction Company clearly stated that all assets of a certain limited company in Taizhou are real estate. Now selling the only asset house to a certain supermarket in a bundled form is a nominal transfer of shares, which is actually buying and selling the house. Lawyer Zhou Hailong believes that the above reasons cannot be established for the two defendants. The two defendants only leased a portion of the house, and the remaining portion was not the subject of the lease right. Therefore, the disposal of this portion should not be limited by the right of first refusal derived from the lease right. If a company truly transfers assets, its overall assets are considered as one thing, and as a partial priority of the lessee, the law does not protect it. The second reason is that Li, as a shareholder of a certain company, requests to divide the company's property for his own residence. The company has a total of 98 houses of all sizes, and according to their own 3.27% stake in the company, they should be divided into 3 rooms; But there is no legal basis for requiring physical segmentation. Faced with the unfavorable situation of the two defendants, the acting lawyer had to respond head-on first. On February 5, 2007, a defense was submitted to the court and several sets of evidence were provided to prove that the lease contract dispute had historical reasons and was caused by the improper restructuring of a certain company. Requesting the court to either dismiss a company's lawsuit request or refer to the treatment provided during the demolition of Dabutou Grain Station and Haimen Grain and Oil Factory in Jiaojiang District, that is, for those living in employee dormitories, a reward of 24000 yuan per person will be issued.

Concealed and insincere

According to Li, on January 6 and 18, 2007, a certain company notified Li, who is a shareholder of the company, by telegram and express delivery, requesting him to reply within 30 days from the date of receiving the notice whether to purchase the equity transferred by 24 shareholders such as Yang to the supermarket. Failure to do so will be deemed as consent to the transfer. In essence, a certain company transfers all the equity of the company, including Li. In response to a company's violation of the relevant provisions of the Company Law, infringing on the interests of shareholders by transferring equity, and urgently handling the procedures for equity change registration. Lawyer Zhou Hailong has developed an agency plan, first responding positively to the leasing contract dispute case, and then suing a certain company on the grounds that the company's resolution infringes on shareholder rights, implementing delaying tactics, and forcing a certain company to make concessions. The plan is established and implemented step by step. On January 24, 2007, an application was sent to a certain company under the name of Mr. Li, requesting the review and copying of the board resolutions, shareholders' meeting resolutions, and meeting minutes related to equity transfer mentioned above. On January 30 of the same year, a "Notice on Equity Transfer" was sent to a certain company and Chairman Yang respectively, requesting notification of the equity price, payment method, payment period, and the debt and debt obligations before and after the equity transfer of a certain company, as well as the liability for breach of contract and other equity transfer terms. On February 6 of the same year, a letter was sent to the Jiaojiang District Branch of the Taizhou Administration for Industry and Commerce, requesting the suspension of the shareholder change registration procedures for a certain company. On February 9th of the same year, a company was sued to the People's Court of Jiaojiang District, requesting the revocation of the shareholders' meeting resolution regarding the transfer of equity. And on March 24 of the same year, he applied to the court to investigate and obtain evidence of the equity transfer agreement of a certain company.

Advocate for harmony

On the eve of the Spring Festival in 2007, before the trial of the lease contract case, some employees of a certain company forcefully issued a notice of vacating the house at the company's instigation. And two days later, he smashed two storefronts at 209 Middle Street, causing Li to be slightly injured. He also threatened to knock down the dormitory stairs for a few days, preventing the two defendants from entering the dormitory and forcing them to vacate their rooms. In response to the increasingly severe situation, in order to safeguard the legitimate rights and interests of the parties and celebrate the New Year safely, the acting lawyer quickly communicated with the presiding judge. Requesting a judge to issue a judicial warning to a company, demanding that the company cease its illegal activities, in order to avoid further complications of the situation.

At the time of the trial, in addition to the normal defense, the acting lawyer also advocated for the song of harmony in the court. State that Li is a retired employee in his 70s. If the court decides to vacate his house, then he has neither a home nor money. How can he live his old age in peace. The Party and the government are currently advocating the establishment of a harmonious society. The basic connotation and main characteristics of socialism and harmonious society are based on the principles of social justice and fairness, establishing and maintaining interest relationships between different social groups; The basic guarantees of socialism and the attainment of society are democratic politics, a "rule of law country", and public policies with fairness and justice as the main values. The court also expressed great sympathy for the two defendants. In addition to requiring the two defendants to apply for affordable housing launched by the local government as soon as possible, they also engaged in ideological work for a certain company, requiring them to make concessions and compensate for one year's rental fee after the two defendants vacated their property.

Mediation and settlement of cases

On April 6th of the same year, due to the urgent need for the equity transferee, a certain supermarket, to acquire shares in a certain company, an intermediary was entrusted to make a request to the two defendants, requesting them to settle the lawsuit and voluntarily vacate the house. Considering Li's age and practical difficulties, he is willing to make economic compensation. And requested Li to authorize an intermediary to handle all matters related to his equity transfer in a certain company, withdraw his lawsuit and request the revocation of the resolution of the shareholders' meeting related to equity transfer in a certain company. In this case, the acting lawyer believes that the time has come and urges the two defendants to agree to the above conditions. On April 9th, the People's Court of Jiaojiang District, Taizhou City, Zhejiang Province issued a civil ruling approving the withdrawal of the lawsuit, and on April 18th, issued a civil mediation agreement for two defendants to vacate their houses within one month and a certain company to compensate them with RMB 1500. With the efforts of the acting lawyer, this case has finally been successfully resolved.

The reason for the occurrence of this case is caused by the improper restructuring of a certain company, and it is reasonable for the supermarket that obtained the equity of the company to make some compensation, as the termination of the contract still requires a liaison.


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