Unpaid Industrial Supplies Lead to 1.09 Million Yuan Judgment: Consumer & Daily Court Ruling

A Chinese manufacturer has obtained a court ruling ordering a standard parts factory to pay over 1.09 million yuan in overdue payments for delivered goods, highlighting how even business-to-business transactions can involve consumer rights and product liability concerns when supply chains break down. The case, heard by a local court, centered on a long-term supply relationship between an industrial factory and a standard parts manufacturer that soured when the buyer failed to pay for multiple batches of wooden pallets and screws delivered over a two-year period.

The plaintiff, a factory based in a coastal economic development zone, supplied wooden pallets, screws, and related products to the defendant standard parts manufacturer between December 2009 and October 2011. The dispute arose when the defendant failed to pay for four distinct batches of deliveries totaling 1,090,816.40 yuan. The plaintiff presented detailed evidence including four separate account reconciliation statements signed by the defendant’s representative’s wife and a business clerk, along with 91 delivery receipts and one value-added tax invoice. The defendant failed to appear in court or submit any defense, nor did they provide evidence of payment. The court examined the documentary evidence and found it met all standards of authenticity, legality, and relevance, particularly noting that the reconciliation statements bore signatures from authorized personnel, which sufficiently proved the existence and quantity of the business transactions.

The court ruled in favor of the plaintiff, ordering the defendant to pay the full amount of 1,090,816.40 yuan plus interest calculated from the date of filing the lawsuit at the benchmark loan rate set by the People’s Bank of China. The judgment emphasized that under Chinese contract law, parties must act in good faith and fulfill their legal and contractual obligations. Since the defendant failed to provide any proof of payment when challenged, they bore the legal consequences of failing to meet their burden of proof. The court also ordered the defendant to bear half of the litigation costs. This case establishes a general legal principle that in commercial disputes over unpaid goods, the burden of proving payment falls on the buyer, and detailed delivery records combined with signed account statements constitute strong evidence supporting a personal injury claim for financial loss or product liability for defective supply chain practices, reinforcing that courts will protect suppliers when proper documentation exists.