Following the implementation of the Shenzhen Special Economic Zone Property Management Regulations in 2020, residential owners' congresses and committees began establishing jointly managed accounts for owners' common funds and assuming financial management responsibilities in accordance with regulations. However, in practice, frequent disputes arose where owners' committees unilaterally vetoed compliant outsourcing expenditures, delayed expense settlements, and defaulted on property management contract commissions. This case stands as a representative example of such property service payment disputes.
The legal team led by Lawyer Lin Yuece accepted the entrustment to act as agents in this case starting in 2023, assuming full responsibility for the agency work, coordinating financial special audits, collecting and organizing evidence throughout the case, and handling all litigation matters for both the first and second instances.
During the first-instance stage, the case underwent two rounds of special audits, multiple rounds of evidence presentation and cross-examination, and several court hearings. Ultimately, the court adopted the third-party audit conclusions and upheld the vast majority of the entrusted party's claims for outsourcing service fees and commissions.
Dissatisfied with the first-instance judgment, the opposing party filed an appeal. Based on the circumstances of the case, Lawyer Lin Yuece's team anticipated this move and, to fully protect the client's lawful rights and interests, simultaneously filed an appeal with the higher court.
After retrial by the Shenzhen Intermediate People's Court, the case welcomed a key favorable amended judgment. The court increased the payable commission by approximately RMB 250,000 based on the amount supported in the first instance. The substantial case acceptance fees and audit costs were also reallocated according to the final judgment. The outcome ultimately proved superior to the first instance, effectively safeguarding the client's economic interests.
Leveraging the adjudication basis established by this victory, Lawyer Lin Yuece's team has now completed the organization and preservation of a full set of evidence regarding historical unpaid commissions from 2016 to 2019. A separate lawsuit has been formally initiated to continue assisting the client in recovering the remaining claims through judicial channels.
After three arduous years of litigation, this case successfully secured a favorable final judgment. The case further clarifies judicial adjudication standards: actual service costs incurred by property companies in accordance with contracts, as well as agreed-upon commissions under the contracts, are protected by law. The owners' assumption of joint management authority over the accounts cannot serve as a statutory justification for the unilateral, unjustified refusal to pay compliant service expenditures.
Our firm will continue to monitor the progress of the remaining cases, relying on professional legal services to steadily advance the debt recovery efforts and comprehensively safeguard the client's lawful rights and interests in accordance with the law.
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