China News Service, October 30 (Xinhua) According to the WeChat official account of the Supreme People's Court, winter heating is a major people's livelihood project and a popular project. It is related to the heating and cooling of thousands of households, the vital interests of the people, and social harmony and stability. Heating disputes involve many parties including heat users, heating companies, and fuel suppliers. The types of disputes are diverse and the seasonal characteristics of conflicts are prominent. In order to implement the various deployment requirements of the Party Central Committee on ensuring energy supply, give full play to the judicial functions of the people's courts, properly resolve disputes related to heat supply, standardize the order of the heat supply market, establish a solid bottom line for people's livelihood protection in winter heating, and ensure that the people are safe and warm through the winter, the Supreme People's Court has released a number of typical cases of people's courts providing services to ensure winter heating.
The four typical cases released this time were extracted from heating-related dispute cases concluded by courts across the country in recent years, covering four types of high-risk dispute scenarios, including breach of contract for excessive heat use, illegal use of heat by private pipe networks, breach of guarantee of upstream fuel supply, and long-term heat supply arrears. The judgments have clear guidance and clear and specific rules. They have both the value of rule guidance and governance demonstration significance. They not only provide judgment reference for local courts to hear similar cases, but also guide market players in the entire heating chain to abide by the spirit of the contract and perform the heat contract with integrity in accordance with the law.
The first is to regulate illegal heat use in accordance with the law and maintain the order of fair utilization of heating resources. Heating resources are public and people's livelihood. Behaviors such as illegal use of heat in private pipe networks and unauthorized expansion of heating areas occupy public heating capacity and destroy the hydraulic balance of pipe networks. This not only increases the operating losses of heating companies, but also destroys regional heating balance, affects the heat quality of surrounding users, and damages social public interests and the legitimate rights and interests of other users. In a dispute over a heat supply contract between a heating company, a chemical company, and the United Energy Branch of a chemical company, the People's Court accurately demarcated the boundaries of liability for defects in heating quality and determined that the failure to meet the standard was due to the user adding facilities and breach of contract for exceeding the scope of heat supply. As a result, the court ordered the heat user to make up for the heating costs and pay liquidated damages. It was clarified that the room temperature was not up to standard due to the heat user's own breach of contract and the payment obligation could not be reduced or exempted. Market entities were guided to use heat in accordance with the regulations within the scope of the contract, and a red line was drawn for the behavior of using heat in accordance with the regulations. In a dispute over a heat supply contract between a heating company and a real estate company, in response to the illegal use of heat by multiple households in the community who connected the heating facilities privately, the responsible party was ordered to make up for the unpaid heating fees according to the contract, and the illegal heat use was negatively evaluated. The judicial judgment guided market entities to regulate heat use within the agreed range, and safeguarded the fairness and stability of the heating market order.
The second is to strictly abide by the principle of integrity and ensure the stability and smoothness of the upstream heat supply chain. Heating work is time-sensitive and the pressure to ensure supply is concentrated. Sufficient reserves of coal and other fuels before the heating season are the basic prerequisite for stable heat sources and continuous heating. The performance of upstream fuel supply contracts is directly related to the overall situation of ensuring supply for people's livelihood. In a coal purchase contract dispute between a heating company and a service company, the coal supplier failed to perform its coal supply obligations within a reasonable period of time despite repeated reminders. The People's Court determined that it constituted a fundamental breach of contract, supported the heating company's claim to terminate the contract in accordance with the law, and ordered the defaulting party to bear corresponding consequences. Liquidated damages are used to make up for the losses caused by heating companies purchasing additional fuel, ensuring that heating companies replenish fuel inventories in a timely manner and guard the bottom line of heat sources. They urge the upstream entities in the heating industry chain to strengthen their awareness of people's livelihood responsibilities, perform contracts on schedule, operate with integrity, and maintain the supply chain of coal and other energy sources for warmth and supply.
The third is to persist in substantively resolving conflicts and disputes and consolidate the economic foundation of heating supply for people's livelihood. Heating costs are the core source of funds for heating companies' pipe network operation and maintenance, fuel procurement, and continuous and stable heating. Long-term arrears can easily cause difficulties for heating companies to withdraw funds and affect their ability to guarantee heat supply in winter. In a series of disputes over heat supply contracts between a heating company and a decoration company, the arrears involved spanned 18 years, and it would be difficult to quickly recover funds with a simple verdict. The people's courts have strengthened coordination and cooperation in filing, trial and enforcement to promote the substantive resolution of disputes. By checking many years of arrears vouchers and pushing forward similar case judgments to carry out demonstrations and interpretations, the heating authorities and the heating industry association are coordinated to provide coordination, taking into account the urgent financial needs of heating enterprises and the debtor's performance ability, and promoting the two parties to reach a mediation plan for paying off debts with housing, and simultaneously follow up and implement the transfer process, resolve the old disputes over arrears of heating fees at once, help heating enterprises recover heating fees to ensure stable operations, and consolidate the economic foundation of heating for people's livelihood.
The trial of disputes in the heating field is connected to the sustainable operation of heating companies and the people's livelihood and public sentiment. The People's Court has always adhered to the people-centered approach, taking into account the public service nature of heat supply and market-oriented operation rules, tried every case involving heat supply disputes fairly and efficiently, and strived to make the people feel fairness and justice in every judicial case. In the next step, the People's Court will continue to focus on urgent, difficult and anxious issues of people's livelihood such as heating and supply in winter, give full play to the role of judicial functions, unify the adjudication standards for similar cases, adhere to and develop the "Maple Bridge Experience" in the new era, deepen the linkage between the government and the court, diversified dispute resolution, guide all parties involved in heating supply to negotiate in a friendly manner and perform contracts in good faith, carry out the work of maintaining warmth and supply in a balanced and orderly manner with high-quality judicial escort, and effectively protect the people's safety and warmth during the winter.
Typical case of people's court service guarantee of heating in winter
Directory
Case 1: If the heat used exceeds the scope of the contract, the heating cost should be supplemented according to the actual heat used - a heat supply contract dispute case between a heating company and a chemical company, and the United Energy Branch of a chemical company
Case 2: Regulating illegal heat consumption and maintaining the order of the heating market - a heat supply contract dispute between a heating company and a real estate company
Case 3: A heating company’s upstream enterprise failed to fulfill its coal supply obligations as contracted and should bear liability for breach of contract - a coal purchase contract dispute case between a heating company and a service company
Case 4: Strengthening coordination and cooperation in filing and enforcement to help heating companies operate stably and keep the people warm during the winter - a series of disputes over heat supply contracts between a heating company and a decoration company
Case 1
If the heat used exceeds the scope of the contract, the heating cost shall be supplemented according to the actual heat used.
——A dispute over a heat supply contract between a heating company and a chemical company and the United Energy Branch of a chemical company
[Basic case facts]
The United Energy Branch of a certain chemical company is a branch established by a certain chemical company. From 2017 to 2021, a heating company signed several "Urban Heat Supply Contracts" with a chemical company; in 2022 and 2023, it signed "Urban Heat Supply Contracts" with the United Energy Branch of a chemical company. The above-mentioned contracts all stipulate that the thermal area is 3937.83 square meters. In December 2023, the United Energy Branch of a chemical company applied for maintenance on the grounds that the heating of the office building of the oil depot was not up to standard. An on-site inspection by a heating company confirmed that the heating temperature was not up to standard because two fire water tanks in the hospital were connected to the heating pipe network for heat tracing without authorization, causing a hydraulic imbalance in the pipe network. All parties agree that the heat used by the fire water tank is not within the heating scope agreed in the contract. Because the parties failed to negotiate on the heat costs generated by fire water tank heating, a heating company filed a lawsuit in court. The court of first instance commissioned an appraisal agency to appraise the heat used by the fire water tank heating system in the seven heating seasons from 2017 to 2024. The appraisal opinion determined that the total heat used was 9831.17 GJ.
【Referee result】
The first instance of the Urumqi Railway Transport Court held that the heat consumption of the fire water tank involved in the case exceeded the heat usage range stipulated in the contract, and the heat user had used the heat tracing facility for many years without truthfully informing the heat supplier, which constituted a breach of contract; a heating company actually provided heating services, and the heat user should bear the corresponding heating costs. Accordingly, it was judged that a chemical company and the United Energy Branch of a chemical company should pay corresponding heating costs and liquidated damages. A chemical company and a chemical company's United Energy Branch were dissatisfied and appealed. The Urumqi Railway Transport Intermediate Court rejected the appeal at the second instance and upheld the original verdict. The judgment in this case has taken effect.
【Typical meaning】
This case is a typical case of disputes over heat supply contracts caused by heat use beyond the scope of the contract. Heating resources are used for a fee, and both parties shall abide by the contract and perform their rights and obligations within the approved scope. In this case, the People's Court made a negative evaluation of the breach of contract of unauthorized addition of heating facilities and expansion of heating load, clarified the boundaries of liability for defects in heating quality, and made it clear that the heating party's own violation of the heat usage caused the room temperature to fail to meet the standard, and its payment obligations cannot be reduced or reduced, and the heating fee should be supplemented based on the actual heat used. The judgment of this case will help guide market entities to use heat in accordance with the law and regulations, consciously fulfill their obligations to pay heating costs, and maintain the normal order of the heating market.
Case 2
Regulate illegal heat use and maintain the order of the heating market
——A dispute over a heat supply contract between a heating company and a real estate company
[Basic case facts]
In November 2022, a heating company signed a heating agreement with a real estate company, stipulating that a certain heating company would provide heating services for a community developed by a real estate company, and it was clearly agreed that a real estate company should not increase the heating area without authorization or use it illegally, otherwise it should pay the corresponding heating fees and bear liability for breach of contract. A real estate company promised that the heating costs for residents in the community would be collected by it and then paid to a heating company. During the performance of the contract, a heating company discovered that a total of 24 households in the community involved in the case had connected to heating facilities without permission and used heat illegally, including two vacant houses of a real estate company and a residential property house. Later, a heating company sued the court, claiming that a real estate company should pay 66,720.40 yuan in additional heating costs. During the litigation process, some users settled the arrears on their own, and in the end they still owed 19,784 yuan for heating costs.
【Referee result】
The first instance of the People's Court of Xintai City, Shandong Province held that according to the heating agreement signed by both parties and the commitment of a real estate company, the expenses incurred by illegally expanding the heating area should be borne by a real estate company. Accordingly, it was judged that a real estate company should pay the remaining arrears of heating costs of 19,784 yuan to a heating company. The judgment in this case has taken effect.
【Typical meaning】
This case is a typical case in which the People's Court regulates illegal heat use in accordance with the law and maintains the order of the heating market. Heating resources are of public nature and people's livelihood. Behaviors such as connecting heat privately and expanding the heating area without authorization not only violate the contract, occupy public heating resources and increase the operating losses of heating companies, but also destroy the regional heating balance and damage the legitimate heat rights and interests of the majority of users. This case regulates illegal heat use and orders illegal heat users to pay the heating fee in full, which is conducive to maintaining a fair and orderly heating market environment, protecting the legitimate rights and interests of heating companies, and ensuring the smooth operation of heating for people's livelihood.
Case three
The upstream enterprises of the thermal power company fail to fulfill their coal supply obligations as contracted and shall bear liability for breach of contract
——A coal purchase contract dispute between a heating company and a service company
[Basic case facts]
A heating company is a regional heating security enterprise. On October 15, 2024, a heating company signed a coal purchase contract with a service company, stipulating that a heating company would purchase 5,000 tons of Class II bituminous coal from a service company. The total contract amount was 3,856,500 yuan. All supply and acceptance would be completed within 15 days after the contract was signed. After the contract was signed, a heating company repeatedly requested delivery, and a service company still failed to fulfill its delivery obligations within the reasonable performance period. To ensure heating supply, a heating company purchased additional coal. Later, a heating company sued the court, requesting that the contract be terminated and a service company pay liquidated damages.
【Referee result】
In the first instance, the Hongxinglong People's Court of Heilongjiang Province held that a service company failed to perform its coal delivery obligations within a reasonable period of time despite repeated reminders, which constituted a fundamental breach of contract. A certain heating company had the right to terminate the contract in accordance with the law, and a service company should bear liability for breach of contract in accordance with the contract. It was then ruled that the coal purchase contract involved in the case should be terminated and a certain service company should pay corresponding liquidated damages. The judgment in this case has taken effect.
【Typical meaning】
This case is a typical case of coal procurement contract disputes involving heat supply guarantee for people's livelihood. Heating supply is extremely seasonal and time-sensitive, and coal reserves before the heating season are a key link in ensuring that people stay warm through the winter. The refusal of coal suppliers to perform their contracts can easily cause fuel shortages for heating companies and directly affect the stability of heating supply for people's livelihood. In this case, the People's Court determined that a service company had fundamentally breached the contract in accordance with the law and ordered the contract to be terminated and the defaulting party to pay liquidated damages. This will help compensate for the losses of the heating company, improve the continuous and stable heating capacity of the heating company, guide relevant market entities in the upstream heating industry to abide by the contract, promptly perform coal supply and other contractual obligations, and assume social responsibilities for ensuring people's livelihood.
Case 4
Strengthen coordination and cooperation in filing, review and enforcement to help heating companies operate stably and keep the people warm during the winter.
——A series of disputes over heat supply contracts between a heating company and a decoration company
[Basic case facts]
23 properties under the name of a decoration company are provided with heating services by a heating company. Since 2005, a decoration company has been in arrears for basic heating bills for a long time. As of the time of prosecution, the accumulated arrears were 18 years and the amount of arrears was 241,924.02 yuan. A certain heating company urged the payment of arrears several times, but a decoration company never paid it off. A certain heating company then brought the case to court.
【Referee result】
After the Changchun Railway Transport Court accepted the case, it carried out coordination and cooperation in the trial and enforcement of cases involving people's livelihood, and promoted the substantive resolution of disputes in layers around the goals of supervising payment and ensuring stable heat supply. The court organized both parties to check the arrears documents over the years to confirm that the heating claims were legal and valid; it promoted similar typical cases to play a leading role in exemplary litigation and explain the legal consequences of arrears; it organized discussions with the heating authorities and the heating association to guide both parties to explore feasible settlement plans based on the fact that the heating season is approaching and the demand for coal purchase funds is urgent. After multiple rounds of negotiations, the two parties reached a mediation agreement to settle all arrears in the form of two properties to offset the debt, and a decoration company would cooperate in handling the house property transfer procedures within one month after the mediation agreement was signed. After the mediation agreement was signed, the People's Court paid close attention to the coal purchase window period, continued to follow up on the progress of the contract, and coordinated with the enforcement departments to finally complete the procedures for paying off debts with housing and settle all heating arrears at one time.
【Typical meaning】
This case is a typical case in which the People's Court strengthened coordination and cooperation in filing trials and enforcement, and substantively resolved long-term heat supply arrears disputes. Heating in winter is a major livelihood project, and the heating fees charged by heating companies are the main source of funds for corporate pipe network operation and maintenance, fuel procurement, and continuous and stable heating. The arrears in this case span a long period of time. If it is simply settled with one judgment, it will not be conducive to the timely withdrawal of funds by the heating companies and may affect the guarantee of winter heating. The People's Court integrated mediation into the entire process of case filing, trial, and execution. Through evidence verification, demonstrations and interpretations of similar cases, and multi-party coordination, it facilitated the parties to reach a debt settlement plan with housing, and resolved the heating debt owed for many years in one go. This case explores multiple repayment paths for long-term heating arrears, helping heating companies to operate stably and keeping the people warm during the winter.
