The case of Fuzhou XX Pest Control Co., Ltd. vs. Wuyishan National Park Administration for cancelling government procurement contracts
The case of Fuzhou XX Pest Control Co., Ltd. vs. Wuyishan National Park Administration for cancelling government procurement contracts
[Basic facts]
In November 2021, Wuyishan National Park Administration (“Park Administration”) compiled a Wuyishan National Park Masterplan for Pinewood Nematode (Bursaphelenchus Xylophilus) Prevention and Control (2022-2025), and forecast that approximately 3,900 pines may die in 2022. In April 2022, Fuzhou XX Pest Control Co., Ltd. (“Pest Control Company”) won the bid and signed with the park administration the “Fujian Provincial Government Procurement Contract”, in which, the subject matter: Wuyishan National Park 2022-2025 Pinewood Nematode Four-Year Prevention and Control Contracting Project; total contract price: 20,639,000 yuan; Year 2022 tasks: removal of dead pines in the park. From April to December 2022, the pest control company cleared 5,263 dead pines, more than the budgeted number. According to the emergency prevention and control implementation plan that the park administration compiled in November 2022, the extreme weather of persistent high temperature and drought caused more deaths of pines, bamboos and other plants than expected and brought about and sped up the death of infected pines; nearly 30,000 pines died in the former scenic area of the park, far more than the projected number of 3,900. The pest control company, on the grounds that a force majeure had led to great difficulty in contract performance, brought a case to the court, requesting to cancel the “Fujian Provincial Government Procurement Contract”; claiming from the park administration 90% of the first-year project price in the original budget of the contract.
[Judgement]
Wuyishan Primary People’s Court, Fujian, argues that the explosion of pinewood nematode-infected and dead pines in Wuyishan National Park was caused mainly by the extreme drought in 2022, which is a statutory force majeure, rendering it unable to achieve the contract purpose; the pest control company has the right to cancel the contract and request the park administration to pay the price for the performed part of the contract obligations. The court thus made out the judgement: cancel the “Fujian Provincial Government Procurement Contract”; the park administration pay the project money of more than 5,880,000 yuan to the pest control company. The park administration lodged an appeal, and Nanping Intermediate People’s Court, Fujian, rejected the appeal and sustained the original judgement.
[Significance]
This is a typical case of supporting and overseeing national park administrations’ performance of their duties. Building national parks is a crucial approach to protect biodiversity, counter climate change and earnestly and steadily advance toward carbon peak and carbon neutrality. Wuyishan National Park is the only national park in China that has joined the UNESCO Man and the Biosphere Programme and is a world cultural and natural heritage site. Pine nematode, a most dangerous and destructive pest in the global forest ecosystem, is known as pines’ cancer. To timely remove dead pipes to prevent and control pine nematode infection is the principal purpose of contract. In handling this case, the people’s court fully performs its adjudicative function, equally protects the legitimate rights and interests of all parties, supports and oversees the national park administration to properly exercise its preservation and management powers, affirms the validity of the administrative agreement, cracks the contract deadlock and benefits qualified prevention and control entities to timely undertake the project and effectively stop the pest spread in the national park. This case will set a positive example for safeguarding the ecological function safety and stability of the national park forest and serving the earnest and steady advancement towards carbon peak and carbon neutrality.
