- (2007) GuMinYiChuZi 449
- Nanjing Gulou District People’s Court
- Mr. Chen v. Nanjing Wuhua Property Management Ltd.
SERVICE CONTRACT - BETWEEN A CHINESE INDIVIDUAL AND A CHINESE COMPANY - GOVERNED BY CHINESE LAW
"COMMENTS" BY A CHINESE JUDGE ON COURT DECISIONS - NOT LEGALLY BINDING – APPLICATION OF THE MITIGATION PRINCIPLE - REFERENCE TO ARTICLE 7.4.8 IN UNIDROIT PRINCIPLES 1994.
Plaintiff, a Chinese individual, concluded a contract with Defendant, a real estate manager, hiring Defendant for a variety of services. One day when Plaintiff was absent from home, his apartment was flooded by water. Defendant cut off the water supply but the leakage did not stop. Two days later Plaintiff rushed back home and hired a plumber to clear the drainage. After that, Plaintiff and Defendant entered negotiations on their respective responsibility and compensation for the damage, but could not reach an agreement which prompted Plaintiff to sue Defendant for breach of contract and damages. Both The Court of First Instance and The Court of Second Instance decided in favour of Plaintiff on the ground of breach of contract and ordered Defendant to pay damages.
The case was analyzed in an article written by a judge from the Court of First Instance. When analyzing the decisions with respect to the amount of damages awarded, the judge referred to Article 7.4.8 of the UNIDROIT Principles (1994) and its Comments which in his view supported the Courts’ findings that Plaintiff had taken reasonable measures to reduce the harm.