A Kindergarten’s Application to Set Aside Arbitration Award Is Dismissed in a Dispute Involving 400 RMB in Filing Fees

A Kindergarten’s Application to Set Aside Arbitration Award Is Dismissed in a Dispute Involving 400 RMB in Filing Fees

CASE OVERVIEW
A Chinese kindergarten filed an application with the court seeking to set aside an arbitration award in a labor dispute. The court dismissed the application after discovering that the employee had already filed a civil lawsuit challenging the same arbitration award. The court ordered the refund of the 400 RMB case acceptance fee that the kindergarten had prepaid.

CASE BACKGROUND AND FACTS
The applicant, a kindergarten located in Northern China, filed an application with the court on December 21, 2010. The kindergarten requested that the court set aside an arbitration award issued by the Eastern China Labor Dispute Arbitration Commission under case number (2010) 1914. The legal representative of the kindergarten was identified as Mr. Song, who served as the chairman of the board. The kindergarten was represented in court by Ms. Wang, the kindergarten principal, who acted as an authorized agent.

The respondent in this matter was Ms. Huang, a female employee of the kindergarten. Ms. Huang was represented by her spouse, Mr. Liu, who acted as her authorized agent.

COURT PROCEEDINGS AND EVIDENCE
Upon accepting the case, the court conducted a review of the procedural history. The court discovered that on December 10, 2010, the Eastern China People’s Court had already accepted a civil lawsuit filed by Ms. Huang. In that lawsuit, Ms. Huang challenged the same arbitration award that the kindergarten was now seeking to set aside.

The court examined the relevant procedural timeline and determined that both parties had initiated legal proceedings concerning the same arbitration award. The kindergarten sought to have the award set aside, while the employee had already filed a separate civil action disputing the award.

COURT FINDINGS AND JUDGMENT
The court applied the provisions of the Supreme People’s Court Interpretation on Several Issues Concerning the Application of Law in the Trial of Labor Dispute Cases (Interpretation III). Under Article 15, Paragraph 1 of this interpretation, when an employee files a civil lawsuit challenging an arbitration award, any application by the employer to set aside that same award must be dismissed by the court.

The court held that because Ms. Huang had already commenced civil litigation regarding the arbitration award, the kindergarten’s application could not proceed. The court therefore issued a ruling to dismiss the kindergarten’s application.

The court further ordered that the prepaid case acceptance fee of 400 RMB be refunded to the kindergarten in accordance with the Measures for the Payment of Litigation Costs, Article 27, Paragraph 2.

The ruling was issued on January 10, 2011, by a panel consisting of Presiding Judge Li, Acting Judge Xing, and Acting Judge Zhuang. The court clerk was Ms. Tian.

KEY LEGAL PRINCIPLES
The court relied on several key legal provisions in reaching its decision. Under the Labor Dispute Mediation and Arbitration Law, Article 48, an employee who is dissatisfied with an arbitration award has the right to file a civil lawsuit in the people’s court. Once the employee exercises this right, the employer’s separate application to set aside the same award becomes procedurally barred.

The Supreme People’s Court Interpretation on Several Issues Concerning the Application of Law in the Trial of Labor Dispute Cases (Interpretation III), Article 15, Paragraph 1, establishes a clear procedural rule. When an employee files a civil lawsuit regarding an arbitration award, the court must dismiss any application by the employer to set aside that award.

The Civil Procedure Law (2007), Article 140, Paragraph 1, Item 11, provides the legal basis for the court to issue a ruling dismissing an application when such dismissal is required by law.

PRACTICAL INSIGHTS
This case illustrates a critical procedural rule in Chinese labor dispute resolution. When an employee initiates civil litigation challenging an arbitration award, the employer loses the right to separately apply to set aside that same award. The employee’s civil action takes procedural priority.

Employers should be aware that filing an application to set aside an arbitration award may be futile if the employee has already commenced litigation. Checking the procedural status with the court before filing such an application can save time and litigation costs.

The refund of the prepaid case acceptance fee demonstrates that courts will not penalize parties financially when an application is dismissed on procedural grounds unrelated to the merits of the case.

LEGAL REFERENCES
Supreme People’s Court Interpretation on Several Issues Concerning the Application of Law in the Trial of Labor Dispute Cases (III), Article 15, Paragraph 1
Civil Procedure Law of the People’s Republic of China (2007), Article 140, Paragraph 1, Item 11
Labor Dispute Mediation and Arbitration Law of the People’s Republic of China, Article 48
Measures for the Payment of Litigation Costs, Article 27, Paragraph 2

DISCLAIMER
This article is for informational purposes only and does not constitute legal advice. Laws and procedures may vary by jurisdiction. Readers should consult a qualified legal professional for advice specific to their situation.