TEN OPINIONS of Supreme Court on COVID-19 Related Civil Cases

28 Apr 2020

On April 20th 2020, Chinese Supreme People’s Court (the “SPC”) issued Guiding Opinions (I) on Several Issues concerning the Proper Trial of Civil Cases Related to the COVID-19 Epidemic (the “Opinion”), which provides definite and practical guidance on the civil cases and judicial procedures influenced by COVID-19 epidemic.

Ten principles are specified by SPC in the Opinion, mainly focused on the followingf our aspects:

to explore diversified dispute resolution and adhere to the priority of mediation;
to clarify and refine the judicial application of force majeure in civil and contractual disputes;
to emphasize the protection of the rights and interests of employees and consumers;
to protect the interests of limitation periods and litigation rights.

As known, the COVID-19 epidemic has been significantly impacting the commercial relationship, contractual performance and judicial procedures over months. The Opinion offered official answers to the following frequently asked questions.

Q1: How to apply force majeure and other principles in civil cases whose performance has been affected by COVID-19 epidemic?

SPC Reply:

Previously, Shanghai High Court published its replies of law application on COVID-19 epidemic related civil cases on February 17, 2020. We can conclude that the courts uniformly consider both the outbreak of the virus itself and the administrative measures taken by governmental authorities as possible disruptions in contract performance. As emphasized by SPC and Shanghai High Court, if any party claims to invoke force majeure, timely notification and direct causation shall be demonstrated.

Q2: How to handle labor issues during the COVID-19 period?

SPC Reply:

Q3: Can consumer claim for punitive damages in the event of fraudulent or counterfeit epidemic prevention materials, such as masks, goggles, protective clothing and disinfectants?

SPC Reply: