Eastern China Property Owner Ordered to Pay 353 Yuan in Unpaid Property Fees and 385 Yuan in Late Fees

Eastern China Property Owner Ordered to Pay 353 Yuan in Unpaid Property Fees and 385 Yuan in Late Fees

Case Overview
A property management company in Eastern China filed a lawsuit against a property owner for failing to pay property management fees for 19 months. The court ruled in favor of the management company, ordering the owner to pay the overdue fees of 353 yuan and late payment penalties of 385 yuan. The claim for attorney fees was denied due to lack of evidence.

Case Background and Facts
The plaintiff, a property management company, entered into a property service contract with the业主委员会 of a residential community in Eastern China on December 26, 2008. The contract specified that the company would provide property management services to the community from January 1, 2009, to December 31, 2013. Under the agreement, residential property owners were required to pay a monthly service fee of 0.25 yuan per square meter. The contract also included a penalty clause allowing the management company to charge a daily late fee of 0.3 percent on overdue amounts, and stated that legal costs, including attorney fees, would be borne by the losing party in any litigation.

The defendant, Mr. Zhao, owned a residential unit in the community with a floor area of 74.4 square meters. He paid the property fee for January 2009 but subsequently refused to make any further payments. The management company sought payment for the period from February 2009 to August 2010, totaling 19 months of unpaid fees.

Court Proceedings and Evidence
The case was filed with the court on November 4, 2010. The court applied summary procedures and held a public hearing. The plaintiff appeared through its authorized representative, while the defendant failed to appear in court despite being properly served with a summons, with no valid reason provided.

Evidence presented included the property service contract between the management company and the业主委员会, the defendant’s property ownership certificate, and the plaintiff’s statements during the hearing. The plaintiff claimed the defendant owed 353.02 yuan in unpaid property fees, 385 yuan in late payment penalties, and 120 yuan in attorney fees. However, during the proceedings, the plaintiff did not provide any evidence to substantiate the claimed attorney fees.

Court Findings and Judgment
The court held that the defendant’s failure to appear in court constituted a waiver of his rights to defend, cross-examine, present evidence, and raise objections. The court found that the defendant’s property was located within the area covered by the property service contract, and the plaintiff had provided property management services. The defendant had accepted these services by paying the first month’s fee, thereby establishing a valid contractual relationship between the parties.

The court determined that the defendant was obligated under the contract to pay the property fees on time. His failure to do so triggered the contractual penalty clause. The court therefore ordered the defendant to pay the overdue property fees of 353 yuan and the late payment penalties of 385 yuan. However, because the plaintiff failed to provide any evidence of actual attorney fees incurred, the court dismissed the claim for 120 yuan in attorney fees.

Key Legal Principles
This case illustrates the principle that a valid contract is binding on all parties and must be performed in good faith. When a property owner accepts services under a property management agreement, a contractual relationship is established, and the owner is obligated to pay the agreed fees. The court also applied the principle that a party seeking to recover specific damages, such as attorney fees, must provide sufficient evidence to support the claim.

The court referenced relevant provisions of Chinese contract law, property law, and property management regulations in reaching its decision.

Practical Insights
Property owners should understand that accepting property management services creates a binding contractual obligation to pay the associated fees. Even without a signed individual contract, if the property management company has a valid agreement with the业主委员会 and provides services to the community, individual owners are generally required to pay. Owners who wish to dispute fees should attend court proceedings to present their arguments; failure to appear can result in a default judgment. Additionally, parties seeking to recover attorney fees in litigation must be prepared to present clear evidence of the fees actually paid.

Legal References
Contract Law of the People’s Republic of China: Articles 8, 60, and 107
Property Law of the People’s Republic of China: Article 78
Property Management Regulations (2007 Revision): Articles 11, 12, and 16
Civil Procedure Law of the People’s Republic of China (2007 Revision): Article 130

Disclaimer
This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for specific legal matters.