Case of Dispute over Damages due to Ship Explosion filed by FAW-Volkswagen Automotive Co. Ltd. against Lin Wucai, Wuzhou Guidong Shipping Company, Wuzhou Communications Industrial Development Company, Wuzhou Navigational Management Department

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Guangzhou Maritime Court

Civil Judgement

(2000)GHFSZ No.101

Plaintiff: FAW-Volkswagen Automotive Co, Ltd

Address: 149-1, Dong Feng Da Jie, Changchun, Jilin Province

Agent ad Litem: Feng Jiancheng, lawyer of Guangzhou Maritime Law Firm

Agent ad Litem: Tang Jihai, staff of Guangzhou Maritime Law Firm

Defendant: Lin Wucai, male, born on October 5, 1953, Han Nationality, residing at No.169, Xi Jiang Road, Teng Cheng Town, Teng County, Wuzhou, Guangxi Zhuang Nationality Autonomous Region

Agent ad Litem: Zeng Hanping, lawyer of Jia Da Law Firm

Defendant: Wuzhou Guidong Shipping Company.

Address: No.59, Nan Ti Road, Wuzhou, Guangxi Zhuang Nationality Autonomous Region

Legal Representative: Zhong Gang, manager

Agent ad Litem: Zeng Hanping, lawyer of Jia Da Law Firm

Defendant: Wuzhou Navigational Management Department.

Address: No.127, Xin Xing Er Road, Wuzhou, Guangxi Zhuang Nationality Autonomous Region

Legal Representative: Su Huiying, director

Agent ad Litem: Zeng Hanping, lawyer of Jia Da Law Firm

With respect to the case of dispute over damages due to ship explosion, which was filed by the Plaintiff FAW-Volkswagen Automotive Co, Ltd. (hereinafter referred to as ?°FAW-Volkswagen?±) against the Defendants Lin Wucai, Wuzhou Guidong Shipping Company (hereinafter referred to as ?°Guidong Co.?±), Wuzhou Communications Industrial Development Company (hereinafter referred to as ?°Communications Co.?±), Wuzhou Navigational Management Department (hereinafter referred to as ?°Wuzhou Department?±), this court accepted the case on October 19, 2000 and constituted the collegiate bench according to law. The court convened the relevant parties to carry out pre-trial exchange of evidences on November 22, and held an open court hearing on November 23. Feng Jiancheng and Tang Jihai, the agents ad litem of the Plaintiff FAW-Volkswagen Automotive Co, Ltd., Zeng Hanping, the agent ad litem of the Defendant Lin Wucai, Zhong Gang, the legal representative of the Defendant Guidong Co., Zeng Hanping, the agent ad litem of Guidong Co. and the Defendant Communications Co. and the Defendant Wuzhou Department, Su Huiying, the legal representative of the Defendant Wuzhou Department, attended the court hearing. Now the case has been finalized.

The Plaintiff FAW-Volkswagen Automotive Co, Ltd claimed that: at about 1740 hrs of March 4, 2000, the Tanker ?°Gui Dong You 05?± owned by the Defendant Lin Wucai sustained a big explosion when she berthed and repaired at the Haixinsha Terminal of Guangzhou port. Part wreck of the Tanker flew to the terminal, causing various degree of damage to some Plaintiff??s vehicles parking at the Haixinsha Terminal. Guangzhou Public Security Bureau found through investigation that the Tanker had carried methyl alcohol as cargo before the explosion, which is combustible and detonable. The cause of the explosion was that the operation was carried out on board with naked fire which ignited the remaining gas of methyl alcohol. According the relevant regulations of the State communications department on safety management of tankers, when tanker carries out a welding operation with naked fire, she must carry out tank cleaning, gas removing and explosion test according to the regulations, and file written application to the local competent department. The operation can be carried out only after the approval has been obtained. However, owner of the vessel, i.e. the Defendant Lin Wucai, and the operator, i.e. the Defendant Guidong Company, have violated the legal obligations. Without going through the said procedures, they carried out the repair with naked fire on the Tanker, resulting in the occurrence of the explosion. The Defendants Lin Wucai and Guidong Company violated Article 16 of the Administrative Regulations on Fire Control of Carrying Vessels and Article 17 of the Implementing Methods of Supervision on Fire Control at Ports, therefore they shall undertake full responsibility for the explosion of the Tanker. In this case, the economic loss of the damaged vehicles were appraised by Guangzhou Pricing Office at the entrustment of Guangzhou Public Security Bureau. The result of appraisal was that 66 vehicles (including 63 ?°Jetta?± cars, 2 ?°Audi?± cars and 1 ?°Jiefang?± vans) were found damaged. The repair cost arising therefrom is in total of RMB411,475. The relevant evidences provided by Wuzhou Industrial and Commercial Administrative Bureau show that the Defendant Guidong Company was registered and incorporated on February 20, 1993 by the Defendant Communications Company by falsely declaring the investment of RMB50,000 in cash and RMB150,000 in substantive materials (steel cargo vessel). However, the Defendant (Communications Co.) in fact has not effected the investment. The original certification on assessment of capital is purely a false declaration. On Jan. 12, 1999, the Defendant Wuzhou Department alleged that it had invested RMB260,000 into Guidong Company, thus the registration capital was to be changed to be RMB360,000. However, a sum of RMB160,000 in the registration capital was the misappropriated administration fee for waterway transportation which should have been handed over to the state treasury. Therefore, the Defendant Guidong Company has no independent properties. The act of its obtaining the qualification as legal person shall be deemed invalid. According to Administrative Regulations on Registration of Enterprises as Legal Persons, only the units possessing the legal person qualification can undertake civil liabilities independently. Therefore, the civil liability of the Defendant Guidong Company shall be undertaken by its founder the Defendant Communications Company and the investor Wuzhou Department. The Plaintiff requested the court to order those four Defendants jointly and severally compensate the Plaintiff for the latter??s economic loss of RMB411,475.

The Plaintiff FAW-Volkswagen Automotive Co. Ltd. provided the following evidences within the time limit for adducing evidence: 1. the Written Record of Field Survey issued by Guangzhou Public Security Bureau; 2. Ascertainment on the Cause of the Fire Accident issued by Guangzhou PSB Fire-fighting Bureau; 3. Appraisal Conclusion for the Price of the Ill-gotten Goods issued by Guangzhou Pricing Office; 4. Register of Ship of the Tanker ?°Gui Dong You 05?±; 5. Registration data for enterprise as legal person of the Defendant Guidong Company; 6. Information on registration of change of the Defendant Guidong Company; 7. Information on registration of legal person of the Defendant Communications Company.

The Defendant Lin Wucai contended that: the explosion of the Tanker was caused by the handlings of the master Zhou Tianwen, the repairman Huang Yuangui, the chief engineer Chen Suizhu, the first engineer Zhong Jinde in violation of the regulations. The Defendant Lin Wucai had no knowledge and qualification for engagement in ship management, therefore there is no question of his violation of any statutory obligations or legal regulations. The master and the engineering officers are engineering personnel of the Tanker, who should have gone through special training and passed examinations before they can take up the post. Especially for the vessels carrying dangerous goods such as tankers, the master and the engineering officer shall have to be trained more strictly. The Defendant Lin Wucai is only the owner of the Tanker. He stayed on the Tanker only for arranging shipping business and collecting freight, but knew little about repairs of tankers. It is without factual basis for the Plaintiff to allege in the statement of claim that the Defendant Lin Wucai violated the legal obligations and the relevant regulations, resulting in the occurrence of the explosion of the Tanker ?°Gui Dong You 05?± and shall undertake full responsibility for the explosion accident. The Defendant Lin Wucai requested the court to reject the litigation requests of the Plaintiff.

The Defendant Lin Wucai provided the following evidences within the time limit for adducing evidence: 1. The certification issued by Wuzhou Harbor Master on June 26, 2000; 2. Reports of Yangcheng Evening and Guangzhou Daily on the explosion of the Tanker ?°Guidong You 05?±; 3. Report of the New Express on the master Zhou Tianwen??s accepting criminal adjudication; 4. Contract for purchase of the Tanker ?°Gui Dong You 05?±, the letter of delivery of the vessel; 5. Certification of increased facilities for the Tanker ?°Gui Dong You 05?± issued by Teng County Teng City Shipyard on June 28, 1998.

The Defendant Guidong Company defended that: as Lin Wucai, the owner of the Tanker ?°Gui Dong You 05?±, could not afford the ship affiliation and administration fee in March, 1999, he returned the license for operation of ship to Wuzhou Department via Guidong Company, declaring lay-up of the Tanker. He orally requested for severing the affiliation relationship. In September, 1999, Guidong Company issued a notice of terminating the affiliation relationship as the tanker could not hand in the administration fee for 6 months. Therefore, the affiliation relationship between Guidong Company and ?°Gui Dong You 05?± has terminated. Guidong Company shall not undertake the civil liability for the damage arising from the explosion of the tanker ?°Gui Dong Yu 05?±. Even though Guidong Company had the affiliation relationship with the Tanker, Guidong Company was not involved in the process of shipment. It is without factual and legal basis for the Plaintiff to hold that Guidong Company violated the legal obligations, causing occurrence of the explosion of ?°Gui Dong You 05?±, and shall undertake full liability for the accident. The Defendant Guidong Company requested the court to reject the litigation requests of the Plaintiff.

The Defendant Guidong Company provided the following evidences within the time limit for adducing evidence: 1. Affiliation Agreement for ?°Gui Dong You 05?±; 2. License for Operation of Ship for ?°Gui Dong You 05?±; 3. Register of Lay-up of ?°Gui Dong You 05?± issued by Wuzhou Department; 4. Detailed list of the affiliation and administration fees handed in by ?°Gui Dong You 05?±; 5. Notice of severing the affiliation relationship issued by Guidong Company to Lin Wucai on September 22, 1999; 6. Report of the Business Situation of Guidong Company produced by Guidong Company on December 28, 1999 to Wuzhou Communications Bureau; 7. Crew service book of crew-member Luo Xijiu.

The Defendant Communications Company defended that: on February 20, 1993 when Guidong Company was registered and incorporated, the registration capital in sum of RMB200,000 was really not invested by Communications Company, but paid by Wuzhou Department. For this reason, Communications Company completed the change of registration with Wuzhou Industrial and Commercial Administrative Bureau in January, 1999. The certification for assessment of capital for Guidong Company is not false, and the acquisition of the qualification as legal person by Guidong Company is not illegal. The change of the subject of investor of Guidong Co. took place at an earlier time, but the explosion of the Tanker ?°Gui Dong You 05?± occurred later. Therefore, Communications Company needs not to shoulder the liability for compensation for Guidong Company who had the qualification as legal person. The Defendant Communications Company requested the court to reject the litigation requests of the Plaintiff.

The Defendant Communications Company provided the following evidences within the time limit for adducing evidence: 1. Certification for assessment of capital for Guidong Company; 2. Information on registration of the change of investor in respect of Guidong Company.

The Defendant Wuzhou Department defended that: there does not exist any issue that Wuzhou Department, when investing capital to Guidong Company, misappropriated the waterway transportation administration fees which should have been handed in to the state treasury. According to the relevant regulations, the waterway transportation administration fee shall be used as employee??s salary, business expenditures and administration fees, and as the costs for retired staff, but it is not the sum for handing in to the state treasury. Wuzhou Department has fully handed in the waterway transportation administration fee in time, has not delayed payment of or withheld or misappropriated such fee Since 1993 when Guidong Company was founded, its registration capital has been in line with the legal provisions, and the company can undertake civil liabilities independently. It is without legal basis for the Plaintiff to request Wuzhou Department to undertake the civil liability. The Tanker ?°Gui Dong You 05?± has been unable to set sail since April, 1999 due to the lack of the license for engagement in shipment. As Guidong Company issued a notice of terminating the affiliation relationship to Lin Wucai in September, 1999, the relationship of rights and obligations between the two party has been ended. There is no prerequisite for the company to undertake the civil liability for ?°Gui Dong You 05?±. In summary, The Defendant Wuzhou Department requested the court to reject the litigation requests of the Plaintiff.

The Defendant Wuzhou Department provided the following evidences within the time limit for adducing evidence: 1. The receipt for the waterway transportation administration fees from 1995 to 1997 which were collected by the Navigational Administration Bureau of Guangxi Zhuang Nationality Autonomous Region (hereinafter called ?°Guangxi Bureau?±) from Wuzhou Department; 2. Certification issued by Guangxi Bureau on November, 7, 2000 regarding Wuzhou Department has fully paid the waterway transportation administration fees in time; 3. Information on the registration of Guidong Company as legal person.

It has been ascertained after trial that: the three defendants had no dissension from the evidences provided by the Plaintiff FAW-Volkswagen Automotive Co. Ltd., so the collegiate bench confirmed the evidences. As to the contract for purchase of ?°Gui Dong You 05?±, letter of delivery of the ship, and the certification on supplementing facilities for ?°Gui Dong You 05?± issued by Teng County Teng City Shipyard on June 28, 1998, which were provided by the Defendant Lin Wucai, the Plaintiff FAW-Volkswagen and other defendants had no dissension, therefore, they are confirmed by the collegiate bench. The certification issued by Wuzhou Harbor Master on June 26, 2000, and provided by the Defendant Lin Wucai, is to certify that the crewmembers Chen Shuizhu and Zhong Jinde attended the professional training for tankers, passed the exams and obtained the relevant qualifications. However, the certification has no statement that the master Zhou Tianwen has the relevant qualification. As the evidence has no relevance to this case, therefore it will not be adopted by the collegiate bench. As for the news reports of Yangcheng Evening, Guangzhou Daily and New Express regarding the explosion of ?°Gui Dong You 05?± as provided by the Defendant Lin Wucai, the facts stated in the relevant reports have not been ascertained by a judicial organ, therefore they are not of the effect to prove the facts in this case. The collegiate bench holds that the above news report cannot be taken as the evidences for this case. As for the evidences provided by the Defendant Guidong Company, other defendants had no dissension, but the Plaintiff FAW-Volkswagen had dissension. But it has neither provided sufficient reasons nor opposite evidences for its rebuttal. Therefore, the evidences have been confirmed by the collegiate bench. As for the evidences provided by the Defendant Communications Company, the other defendants had no dissension. The Plaintiff FAW-Volkswagen also provided the evidences as same as those provided by Communications Company to support its claim, therefore they are accepted by the collegiate bench. As for the evidences provided by Wuzhou Department, the Plaintiff and the other defendants had no dissension, therefore they are confirmed by this collegiate bench.

In summary of the evidences provided by the Plaintiff and the Defendants which have been ascertained and accepted by the collegiate bench, the collegiate bench ascertains the facts as follows:

According to the Register Book of the Tanker ?°Gui Dong You 05?± in respect of the registration of the ownership, as confirmed by Wuzhou Department: the owner of the Tanker ?°Gui Dong You 05?± is the Defendant Lin Wucai, and the date of obtaining the ownership is November 26, 1998; it is stated in the relevant certificate of registration of nationality that: the operator of ?°Gui Dong You 05?± is the Defendant Guidong Company and the date of issuing the certificate is on November 26, 1998. The certificate is valid until November 25, 2003. Before the explosion took place, the owner and operator of the tanker have not handled formalities for change of the registration.

The Ascertainment for the Cause of the Fire Accident issued by Guangzhou PSB Fire-fighting Bureau on March 31, 2000 states that: at 1740 hrs of March 4, ?°Gui Dong You 05?± lying alongside the terminal of Guangzhou Harbor Bureau Henan Harbor Company Lijiao Branch (address: No.26, Zhen Xing Da Jie, Haizhu District, Guangzhou, hereinafter called ?°the Lijiao Terminal?±) sustained an explosion. The hull of the tanker was heavily damaged. Part of the wrecks flew to the parking area near the bank, causing damage in various degree to some vehicles pending for sale and parking at the parking area. 3 person died and 2 were injured due to the explosion. The cause of the explosion of ?°Gui Dong You 05?± ascertained by Guangzhou PSB Fire-fighting Bureau is that: a welder named Huang Yuangui, whose home town is Guangxi, carried out welding operation with naked fire, so that the volatile gas of methyl alcohol remaining in the tank was ignited and the explosion was incurred. On September 2, Guangzhou Pricing Office issued a copy of Appraisal Conclusion for the Price of Ill-gotten Goods in Guangzhou (hereinafter referred to as ?°Appraisal Conclusion?±). The Appraisal Conclusion holds that: when ?°Gui Dong You 05?± sustained the explosion, 63 brand-new ?°Jetta?± cars, 2 brand-new ?°Audi?± cars and 1 brand-new ?°Jiefang?± van were damaged due to impulsion of the blast, striking by the falling substances and scorching of splashing sparks. The said damaged vehicles can be repaired. The Appraisal Conclusion determines the repair cost for the vehicles to be RMB411,475.

It is additionally ascertained that: Zhou Tianwen was employed by the Defendant Lin Wucai and worked as the master of the Tanker ?°Gui Dong You 05?±. On the morning of March 2, 2000, after the Tanker ?°Gui Dong You 05?± discharged 500 tons of methyl alcohol at Jiangmen Solvent Factory, she did not clear off the gas of methyl alcohol remaining in the tank, and did not carry out the operations of gas removing and detonable test. In the evening of March 2, without the approval and designation of Guangzhou Harbor Master, the tanker sailed to the Lijiao Terminal for berthing. On the afternoon of March 4, after discussions, between master Zhou Tianwen and the Defendant Lin Wucai, the master asked the welder Huang Yuangui, who had not the license to work on the post, to repair the tanker by way of welding and cutting. As Huang Yuangui repaired the tanker with naked fire, so that a heavy explosion was incurred in the tank. The Defendant Lin Wucai confirmed that: the Defendant Guidong Company did not know the facts that he had carried in his own name methyl alcohol at the voyage prior to the explosion accident of ?°Gui Dong You 05?± and the consequent business activities.

The Defendant Guidong Company and the Defendant Lin Wucai signed an Agreement regarding the Tanker??s Joining in Wuzhou Guidong Shipping Company on October 20, 1993. The Agreement stipulates that: the Defendant Lin Wucai affiliated ?°Gui Dong You 05?± under his ownership to the Defendant Guidong Company, but the ownership of the tanker remained unchanged. The Defendant Lin Wucai shall be in charge of the operation of the tanker and pay the enterprise administration fee to the Defendant Guidong Company at RMB1.5 per deadweight ton per month. In March, 1999, the Defendant Guidong Company took back the License for Engagement in Transportation of ?°Gui Dong You 05?±. The period of usage stated in the license is valid until June 20, 1999, and the owner and operator of the tanker are both the Defendant Guidong Company. Since April, 1999, the Defendant Lin Wucai no longer paid any administration fee to the Defendant Guidong Company. On September 22, the Defendant Guidong Company notified the Defendant Lin Wucai to terminate the affiliation relationship. The Defendant Lin Wucai signed and acknowledged receipt of the said notice on January 3, 2000.

On February 16, 1993, as a unit in charge of the incorporation, the Defendant Communications Company provided documents for registration of enterprises such as the Application for Assessment of Capital, Certification of Fund Guaranty and Certification on Assessment of Capital to Wuzhou Industrial and Commercial Administrative Bureau (hereinafter referred to as ?°Wuzhou AIC?±). According to the said documents, the Defendant Communications Company invested RMB50,000 in cash and invested with the substantive materials of the ?°Steel Cargo Vessel?± (equivalent to RMB150,000). On February 20, Wuzhou AIC approved the establishment of Guidong Company, with its nature determined to be enterprise as legal person and the registration capital to be RMB200,000. On January 8, 1999, the Defendants Communications Company and Wuzhou Department respectively issued the certifications to Wuzhou AIC, stating that Communications Co. should have put the investment when the Guidong Company was at the stage of preparing for establishment as a company, but it was lack of funds at that moment and was unable to pay the investment. Therefore, the registration capital in amount of RMB200,000 was actually injected by Wuzhou Department. On the same day, the Defendant Wuzhou Department issued a Letter of Authorization to Wuzhou Port Transportation United Corp. (hereinafter called ?°Port United Co.?±), requested Port United Co. to pay the waterway transportation administration fees of RMB160,000 in arrears from 1995 to 1997 to Wuzhou Department directly to the Defendant Guidong Company. On Jan. 12, 1999, the Port United Co. paid to Guidong Co. RMB160,000. On October 8, 1998 and January 12, 1999, the Defendant Guidong Company issued payment receipts for the investments respectively in the amount of RMB100,000 and RMB160,000 to the Defendant Wuzhou Department. According to the business license for enterprise as legal person provided by Guidong Company when it responded to the action, the registration capital of the Company is RMB360,000. The date of issuing the license is January 21, 1999. On November 13, 2000, Wuzhou AIC provided the information on registration of enterprises, which states that: the subscriber of Guidong Company is changed to be Wuzhou Navigational Management Department, and the amount of subscription is RMB360,000. According to the receipt issued by Guangxi Bureau for the payment of waterway transportation administration fees from 1995 to 1997 received from Wuzhou Department and the certification issued by Guangxi Bureau on November 7, 2000, the Defendant Wuzhou Department has fully paid the waterway transportation administration fees from 1995 to 1997 in time.

The collegiate bench holds that: this case is a dispute over damages arising from ship explosion. According to Article 16 of the Administrative Provisions on Fire Control of Vessels, the operations with naked fire on a vessel shall be subject to examination and approval; the operations with naked fire on vessels berthing at ports shall be examined and approved by the harbor superintendent department and filed to the PSB fire-control superintendent authority for record; the operators for the operations using naked fire must be certified before being qualified for their post. In violation of the above regulations, without carrying out the operations of cleaning, gas removing, detonable test for the tanker from which the methyl alcohol was just discharged and without making ensured that there was no combustible gas on the tanker, without prior approval by competent authorities concerned, ?°Gui Dong You 05?± employed unlicensed persons to carry out welding operation with naked fire, resulting in the explosion of the tanker and the property loss of the Plaintiff FAW-Volkswagen. The accident was caused due to the fault jointly committed by the master Zhou Tianwen who was in charge of safety management of ?°Gui Dong You 05?± and the welder Huang Yuangui. Pursuant to Article 130 of the General Principles of the Civil Law of the PRC, if two or more persons jointly infringe upon another person's rights and cause harm to him, they shall bear joint liability. The Plaintiff FAW-Volkswagen has the right to claim for the damages against the two parties or one party which have committed the fault. As the master Zhou Tianwen was employed by the Defendant Lin Wucai, the Defendant Lin Wucai shall undertake the civil liability for the loss incurred to the properties of the other persons due to the fault committed by his employee. Therefore, the claim of the Plaintiff FAW-Volkswagen against the Defendant Lin Wucai for indemnifying the loss of the vehicles in amount of RMB411,475 shall be supported.

As the Defendant Lin Wucai has not paid the affiliation administration fee to the Defendant Guidong Company, Guidong Company took back the License for Engagement of Transportation from the Defendant Lin Wucai in March, 1999. The validity of the license has been exceeded when the accident occurred. Before the accident, the Defendant Guidong Company also issued the notice of terminating the affiliation relationship to the Defendant Lin Wucai, and the Defendant confirmed receipt of the same. Therefore, it shall be ascertained that the Defendant Guidong Company has terminated the affiliation relationship with the Defendant Lin Wucai. Furthermore, the Defendant Guidong Company is not the operator stated in the certificate of registry of vessel??s ownership for ?°Gui Dong You 05?±. When the accident took place, ?°Gui Dong You 05?± was actually operated by the Defendant Lin Wucai. Therefore, the Defendant Guidong Company shall not undertake joint and several liability for the indemnification. In view that the Defendant Guidong Company is not liable for the indemnification, and Guidong Company is a legal person enterprise incorporated according to law, it shall undertake the civil liability independently. As the investor of Guidong Company, the Defendant Wuzhou Department shall not undertake the civil liability on its behalf. When the accident took place, the Defendant Communications Company was not the investor of Guidong Company, therefore let alone it shall undertake the civil liability. It is without factual and legal basis for the Plaintiff FAW-Volkswagen to claim against the Defendants Wuzhou Department and Communications Company to undertake the joint and several liability for the indemnification, therefore its claim will not be supported.

Pursuant to paragraph 2 of Article 117 of the General Principles of the Civil Law of the PRC, the judgement is rendered as follows:

I. The Defendant Lin Wucai compensate the Plaintiff FAW-Volkswagen for the loss of properties in amount of RMB411,475;

II. The litigation requests filed by the Plaintiff against the Defendants Guidong Company, Communications Company and Wuzhou Department shall be dismissed.

The case acceptance fee for this case in RMB8,682 shall be undertaken by the Defendant Lin Wucai. The case acceptance fee prepaid by the Plaintiff will not be refunded by this court. The part to be undertaken by the Defendant Lin Wucai shall be directly paid to the Plaintiff.

The above-mentioned obligation of payment shall be accomplished within 10 days after this judgement takes effect.

If any party is not unsatisfied with this judgement, it may submit a statement of appeal to this court within 15 days upon service of this judgement, together with copies corresponding to the number of the opposite parties. The appellate court shall be the Higher People??s Court of Guangdong Province.

Presiding Judge: Wu Zili

Judge: Deng Yufeng

Judge: Huang Qiusheng

December 12, 2000

Court Clerk: Tan Shumin

Guangzhou Maritime Court Civil Judgement (2000)GHFSZ No.101 Plaintiff: FAW-Volkswagen Automotive Co, Ltd Address: 149-1, Dong Feng Da Jie, Changchun, Jilin Province Agent ad Litem: Feng Jiancheng, lawyer of Guangzhou Maritime Law Firm Agent ad Litem: Tang Jihai, staff of Guangzhou Maritime Law Firm Defendant: Lin Wucai, male, born on October 5, 1953, Han Nationality, residing at No.169, Xi Jiang Road, Teng Cheng Town, Teng County, Wuzhou, Guangxi Zhuang Nationality Autonomous Region Agent ad Litem: Zeng Hanping, lawyer of Jia Da Law Firm Defendant: Wuzhou Guidong Shipping Company. Address: No.59, Nan Ti Road, Wuzhou, Guangxi Zhuang Nationality Autonomous Region Legal Representative: Zhong Gang, manager Agent ad Litem: Zeng Hanping, lawyer of Jia Da Law Firm Defendant: Wuzhou Navigational Management Department. Address: No.127, Xin Xing Er Road, Wuzhou, Guangxi Zhuang Nationality Autonomous Region Legal Representative: Su Huiying, director Agent ad Litem: Zeng Hanping, lawyer of Jia Da Law Firm With respect to the case of dispute over damages due to ship explosion, which was filed by the Plaintiff FAW-Volkswagen Automotive Co, Ltd. (hereinafter referred to as ?°FAW-Volkswagen?±) against the Defendants Lin Wucai, Wuzhou Guidong Shipping Company (hereinafter referred to as ?°Guidong Co.?±), Wuzhou Communications Industrial Development Company (hereinafter referred to as ?°Communications Co.?±), Wuzhou Navigational Management Department (hereinafter referred to as ?°Wuzhou Department?±), this court accepted the case on October 19, 2000 and constituted the collegiate bench according to law. The court convened the relevant parties to carry out pre-trial exchange of evidences on November 22, and held an open court hearing on November 23. Feng Jiancheng and Tang Jihai, the agents ad litem of the Plaintiff FAW-Volkswagen Automotive Co, Ltd., Zeng Hanping, the agent ad litem of the Defendant Lin Wucai, Zhong Gang, the legal representative of the Defendant Guidong Co., Zeng Hanping, the agent ad litem of Guidong Co. and the Defendant Communications Co. and the Defendant Wuzhou Department, Su Huiying, the legal representative of the Defendant Wuzhou Department, attended the court hearing. Now the case has been finalized. The Plaintiff FAW-Volkswagen Automotive Co, Ltd claimed that: at about 1740 hrs of March 4, 2000, the Tanker ?°Gui Dong You 05?± owned by the Defendant Lin Wucai sustained a big explosion when she berthed and repaired at the Haixinsha Terminal of Guangzhou port. Part wreck of the Tanker flew to the terminal, causing various degree of damage to some Plaintiff??s vehicles parking at the Haixinsha Terminal. Guangzhou Public Security Bureau found through investigation that the Tanker had carried methyl alcohol as cargo before the explosion, which is combustible and detonable. The cause of the explosion was that the operation was carried out on board with naked fire which ignited the remaining gas of methyl alcohol. According the relevant regulations of the State communications department on safety management of tankers, when tanker carries out a welding operation with naked fire, she must carry out tank cleaning, gas removing and explosion test according to the regulations, and file written application to the local competent department. The operation can be carried out only after the approval has been obtained. However, owner of the vessel, i.e. the Defendant Lin Wucai, and the operator, i.e. the Defendant Guidong Company, have violated the legal obligations. Without going through the said procedures, they carried out the repair with naked fire on the Tanker, resulting in the occurrence of the explosion. The Defendants Lin Wucai and Guidong Company violated Article 16 of the Administrative Regulations on Fire Control of Carrying Vessels and Article 17 of the Implementing Methods of Supervision on Fire Control at Ports, therefore they shall undertake full responsibility for the explosion of the Tanker. In this case, the economic loss of the damaged vehicles were appraised by Guangzhou Pricing Office at the entrustment of Guangzhou Public Security Bureau. The result of appraisal was that 66 vehicles (including 63 ?°Jetta?± cars, 2 ?°Audi?± cars and 1 ?°Jiefang?± vans) were found damaged. The repair cost arising therefrom is in total of RMB411,475. The relevant evidences provided by Wuzhou Industrial and Commercial Administrative Bureau show that the Defendant Guidong Company was registered and incorporated on February 20, 1993 by the Defendant Communications Company by falsely declaring the investment of RMB50,000 in cash and RMB150,000 in substantive materials (steel cargo vessel). However, the Defendant (Communications Co.) in fact has not effected the investment. The original certification on assessment of capital is purely a false declaration. On Jan. 12, 1999, the Defendant Wuzhou Department alleged that it had invested RMB260,000 into Guidong Company, thus the registration capital was to be changed to be RMB360,000. However, a sum of RMB160,000 in the registration capital was the misappropriated administration fee for waterway transportation which should have been handed over to the state treasury. Therefore, the Defendant Guidong Company has no independent properties. The act of its obtaining the qualification as legal person shall be deemed invalid. According to Administrative Regulations on Registration of Enterprises as Legal Persons, only the units possessing the legal person qualification can undertake civil liabilities independently. Therefore, the civil liability of the Defendant Guidong Company shall be undertaken by its founder the Defendant Communications Company and the investor Wuzhou Department. The Plaintiff requested the court to order those four Defendants jointly and severally compensate the Plaintiff for the latter??s economic loss of RMB411,475. The Plaintiff FAW-Volkswagen Automotive Co. Ltd. provided the following evidences within the time limit for adducing evidence: 1. the Written Record of Field Survey issued by Guangzhou Public Security Bureau; 2. Ascertainment on the Cause of the Fire Accident issued by Guangzhou PSB Fire-fighting Bureau; 3. Appraisal Conclusion for the Price of the Ill-gotten Goods issued by Guangzhou Pricing Office; 4. Register of Ship of the Tanker ?°Gui Dong You 05?±; 5. Registration data for enterprise as legal person of the Defendant Guidong Company; 6. Information on registration of change of the Defendant Guidong Company; 7. Information on registration of legal person of the Defendant Communications Company. The Defendant Lin Wucai contended that: the explosion of the Tanker was caused by the handlings of the master Zhou Tianwen, the repairman Huang Yuangui, the chief engineer Chen Suizhu, the first engineer Zhong Jinde in violation of the regulations. The Defendant Lin Wucai had no knowledge and qualification for engagement in ship management, therefore there is no question of his violation of any statutory obligations or legal regulations. The master and the engineering officers are engineering personnel of the Tanker, who should have gone through special training and passed examinations before they can take up the post. Especially for the vessels carrying dangerous goods such as tankers, the master and the engineering officer shall have to be trained more strictly. The Defendant Lin Wucai is only the owner of the Tanker. He stayed on the Tanker only for arranging shipping business and collecting freight, but knew little about repairs of tankers. It is without factual basis for the Plaintiff to allege in the statement of claim that the Defendant Lin Wucai violated the legal obligations and the relevant regulations, resulting in the occurrence of the explosion of the Tanker ?°Gui Dong You 05?± and shall undertake full responsibility for the explosion accident. The Defendant Lin Wucai requested the court to reject the litigation requests of the Plaintiff. The Defendant Lin Wucai provided the following evidences within the time limit for adducing evidence: 1. The certification issued by Wuzhou Harbor Master on June 26, 2000; 2. Reports of Yangcheng Evening and Guangzhou Daily on the explosion of the Tanker ?°Guidong You 05?±; 3. Report of the New Express on the master Zhou Tianwen??s accepting criminal adjudication; 4. Contract for purchase of the Tanker ?°Gui Dong You 05?±, the letter of delivery of the vessel; 5. Certification of increased facilities for the Tanker ?°Gui Dong You 05?± issued by Teng County Teng City Shipyard on June 28, 1998. The Defendant Guidong Company defended that: as Lin Wucai, the owner of the Tanker ?°Gui Dong You 05?±, could not afford the ship affiliation and administration fee in March, 1999, he returned the license for operation of ship to Wuzhou Department via Guidong Company, declaring lay-up of the Tanker. He orally requested for severing the affiliation relationship. In September, 1999, Guidong Company issued a notice of terminating the affiliation relationship as the tanker could not hand in the administration fee for 6 months. Therefore, the affiliation relationship between Guidong Company and ?°Gui Dong You 05?± has terminated. Guidong Company shall not undertake the civil liability for the damage arising from the explosion of the tanker ?°Gui Dong Yu 05?±. Even though Guidong Company had the affiliation relationship with the Tanker, Guidong Company was not involved in the process of shipment. It is without factual and legal basis for the Plaintiff to hold that Guidong Company violated the legal obligations, causing occurrence of the explosion of ?°Gui Dong You 05?±, and shall undertake full liability for the accident. The Defendant Guidong Company requested the court to reject the litigation requests of the Plaintiff. The Defendant Guidong Company provided the following evidences within the time limit for adducing evidence: 1. Affiliation Agreement for ?°Gui Dong You 05?±; 2. License for Operation of Ship for ?°Gui Dong You 05?±; 3. Register of Lay-up of ?°Gui Dong You 05?± issued by Wuzhou Department; 4. Detailed list of the affiliation and administration fees handed in by ?°Gui Dong You 05?±; 5. Notice of severing the affiliation relationship issued by Guidong Company to Lin Wucai on September 22, 1999; 6. Report of the Business Situation of Guidong Company produced by Guidong Company on December 28, 1999 to Wuzhou Communications Bureau; 7. Crew service book of crew-member Luo Xijiu. The Defendant Communications Company defended that: on February 20, 1993 when Guidong Company was registered and incorporated, the registration capital in sum of RMB200,000 was really not invested by Communications Company, but paid by Wuzhou Department. For this reason, Communications Company completed the change of registration with Wuzhou Industrial and Commercial Administrative Bureau in January, 1999. The certification for assessment of capital for Guidong Company is not false, and the acquisition of the qualification as legal person by Guidong Company is not illegal. The change of the subject of investor of Guidong Co. took place at an earlier time, but the explosion of the Tanker ?°Gui Dong You 05?± occurred later. Therefore, Communications Company needs not to shoulder the liability for compensation for Guidong Company who had the qualification as legal person. The Defendant Communications Company requested the court to reject the litigation requests of the Plaintiff. The Defendant Communications Company provided the following evidences within the time limit for adducing evidence: 1. Certification for assessment of capital for Guidong Company; 2. Information on registration of the change of investor in respect of Guidong Company. The Defendant Wuzhou Department defended that: there does not exist any issue that Wuzhou Department, when investing capital to Guidong Company, misappropriated the waterway transportation administration fees which should have been handed in to the state treasury. According to the relevant regulations, the waterway transportation administration fee shall be used as employee??s salary, business expenditures and administration fees, and as the costs for retired staff, but it is not the sum for handing in to the state treasury. Wuzhou Department has fully handed in the waterway transportation administration fee in time, has not delayed payment of or withheld or misappropriated such fee Since 1993 when Guidong Company was founded, its registration capital has been in line with the legal provisions, and the company can undertake civil liabilities independently. It is without legal basis for the Plaintiff to request Wuzhou Department to undertake the civil liability. The Tanker ?°Gui Dong You 05?± has been unable to set sail since April, 1999 due to the lack of the license for engagement in shipment. As Guidong Company issued a notice of terminating the affiliation relationship to Lin Wucai in September, 1999, the relationship of rights and obligations between the two party has been ended. There is no prerequisite for the company to undertake the civil liability for ?°Gui Dong You 05?±. In summary, The Defendant Wuzhou Department requested the court to reject the litigation requests of the Plaintiff. The Defendant Wuzhou Department provided the following evidences within the time limit for adducing evidence: 1. The receipt for the waterway transportation administration fees from 1995 to 1997 which were collected by the Navigational Administration Bureau of Guangxi Zhuang Nationality Autonomous Region (hereinafter called ?°Guangxi Bureau?±) from Wuzhou Department; 2. Certification issued by Guangxi Bureau on November, 7, 2000 regarding Wuzhou Department has fully paid the waterway transportation administration fees in time; 3. Information on the registration of Guidong Company as legal person. It has been ascertained after trial that: the three defendants had no dissension from the evidences provided by the Plaintiff FAW-Volkswagen Automotive Co. Ltd., so the collegiate bench confirmed the evidences. As to the contract for purchase of ?°Gui Dong You 05?±, letter of delivery of the ship, and the certification on supplementing facilities for ?°Gui Dong You 05?± issued by Teng County Teng City Shipyard on June 28, 1998, which were provided by the Defendant Lin Wucai, the Plaintiff FAW-Volkswagen and other defendants had no dissension, therefore, they are confirmed by the collegiate bench. The certification issued by Wuzhou Harbor Master on June 26, 2000, and provided by the Defendant Lin Wucai, is to certify that the crewmembers Chen Shuizhu and Zhong Jinde attended the professional training for tankers, passed the exams and obtained the relevant qualifications. However, the certification has no statement that the master Zhou Tianwen has the relevant qualification. As the evidence has no relevance to this case, therefore it will not be adopted by the collegiate bench. As for the news reports of Yangcheng Evening, Guangzhou Daily and New Express regarding the explosion of ?°Gui Dong You 05?± as provided by the Defendant Lin Wucai, the facts stated in the relevant reports have not been ascertained by a judicial organ, therefore they are not of the effect to prove the facts in this case. The collegiate bench holds that the above news report cannot be taken as the evidences for this case. As for the evidences provided by the Defendant Guidong Company, other defendants had no dissension, but the Plaintiff FAW-Volkswagen had dissension. But it has neither provided sufficient reasons nor opposite evidences for its rebuttal. Therefore, the evidences have been confirmed by the collegiate bench. As for the evidences provided by the Defendant Communications Company, the other defendants had no dissension. The Plaintiff FAW-Volkswagen also provided the evidences as same as those provided by Communications Company to support its claim, therefore they are accepted by the collegiate bench. As for the evidences provided by Wuzhou Department, the Plaintiff and the other defendants had no dissension, therefore they are confirmed by this collegiate bench. In summary of the evidences provided by the Plaintiff and the Defendants which have been ascertained and accepted by the collegiate bench, the collegiate bench ascertains the facts as follows: According to the Register Book of the Tanker ?°Gui Dong You 05?± in respect of the registration of the ownership, as confirmed by Wuzhou Department: the owner of the Tanker ?°Gui Dong You 05?± is the Defendant Lin Wucai, and the date of obtaining the ownership is November 26, 1998; it is stated in the relevant certificate of registration of nationality that: the operator of ?°Gui Dong You 05?± is the Defendant Guidong Company and the date of issuing the certificate is on November 26, 1998. The certificate is valid until November 25, 2003. Before the explosion took place, the owner and operator of the tanker have not handled formalities for change of the registration. The Ascertainment for the Cause of the Fire Accident issued by Guangzhou PSB Fire-fighting Bureau on March 31, 2000 states that: at 1740 hrs of March 4, ?°Gui Dong You 05?± lying alongside the terminal of Guangzhou Harbor Bureau Henan Harbor Company Lijiao Branch (address: No.26, Zhen Xing Da Jie, Haizhu District, Guangzhou, hereinafter called ?°the Lijiao Terminal?±) sustained an explosion. The hull of the tanker was heavily damaged. Part of the wrecks flew to the parking area near the bank, causing damage in various degree to some vehicles pending for sale and parking at the parking area. 3 person died and 2 were injured due to the explosion. The cause of the explosion of ?°Gui Dong You 05?± ascertained by Guangzhou PSB Fire-fighting Bureau is that: a welder named Huang Yuangui, whose home town is Guangxi, carried out welding operation with naked fire, so that the volatile gas of methyl alcohol remaining in the tank was ignited and the explosion was incurred. On September 2, Guangzhou Pricing Office issued a copy of Appraisal Conclusion for the Price of Ill-gotten Goods in Guangzhou (hereinafter referred to as ?°Appraisal Conclusion?±). The Appraisal Conclusion holds that: when ?°Gui Dong You 05?± sustained the explosion, 63 brand-new ?°Jetta?± cars, 2 brand-new ?°Audi?± cars and 1 brand-new ?°Jiefang?± van were damaged due to impulsion of the blast, striking by the falling substances and scorching of splashing sparks. The said damaged vehicles can be repaired. The Appraisal Conclusion determines the repair cost for the vehicles to be RMB411,475. It is additionally ascertained that: Zhou Tianwen was employed by the Defendant Lin Wucai and worked as the master of the Tanker ?°Gui Dong You 05?±. On the morning of March 2, 2000, after the Tanker ?°Gui Dong You 05?± discharged 500 tons of methyl alcohol at Jiangmen Solvent Factory, she did not clear off the gas of methyl alcohol remaining in the tank, and did not carry out the operations of gas removing and detonable test. In the evening of March 2, without the approval and designation of Guangzhou Harbor Master, the tanker sailed to the Lijiao Terminal for berthing. On the afternoon of March 4, after discussions, between master Zhou Tianwen and the Defendant Lin Wucai, the master asked the welder Huang Yuangui, who had not the license to work on the post, to repair the tanker by way of welding and cutting. As Huang Yuangui repaired the tanker with naked fire, so that a heavy explosion was incurred in the tank. The Defendant Lin Wucai confirmed that: the Defendant Guidong Company did not know the facts that he had carried in his own name methyl alcohol at the voyage prior to the explosion accident of ?°Gui Dong You 05?± and the consequent business activities. The Defendant Guidong Company and the Defendant Lin Wucai signed an Agreement regarding the Tanker??s Joining in Wuzhou Guidong Shipping Company on October 20, 1993. The Agreement stipulates that: the Defendant Lin Wucai affiliated ?°Gui Dong You 05?± under his ownership to the Defendant Guidong Company, but the ownership of the tanker remained unchanged. The Defendant Lin Wucai shall be in charge of the operation of the tanker and pay the enterprise administration fee to the Defendant Guidong Company at RMB1.5 per deadweight ton per month. In March, 1999, the Defendant Guidong Company took back the License for Engagement in Transportation of ?°Gui Dong You 05?±. The period of usage stated in the license is valid until June 20, 1999, and the owner and operator of the tanker are both the Defendant Guidong Company. Since April, 1999, the Defendant Lin Wucai no longer paid any administration fee to the Defendant Guidong Company. On September 22, the Defendant Guidong Company notified the Defendant Lin Wucai to terminate the affiliation relationship. The Defendant Lin Wucai signed and acknowledged receipt of the said notice on January 3, 2000. On February 16, 1993, as a unit in charge of the incorporation, the Defendant Communications Company provided documents for registration of enterprises such as the Application for Assessment of Capital, Certification of Fund Guaranty and Certification on Assessment of Capital to Wuzhou Industrial and Commercial Administrative Bureau (hereinafter referred to as ?°Wuzhou AIC?±). According to the said documents, the Defendant Communications Company invested RMB50,000 in cash and invested with the substantive materials of the ?°Steel Cargo Vessel?± (equivalent to RMB150,000). On February 20, Wuzhou AIC approved the establishment of Guidong Company, with its nature determined to be enterprise as legal person and the registration capital to be RMB200,000. On January 8, 1999, the Defendants Communications Company and Wuzhou Department respectively issued the certifications to Wuzhou AIC, stating that Communications Co. should have put the investment when the Guidong Company was at the stage of preparing for establishment as a company, but it was lack of funds at that moment and was unable to pay the investment. Therefore, the registration capital in amount of RMB200,000 was actually injected by Wuzhou Department. On the same day, the Defendant Wuzhou Department issued a Letter of Authorization to Wuzhou Port Transportation United Corp. (hereinafter called ?°Port United Co.?±), requested Port United Co. to pay the waterway transportation administration fees of RMB160,000 in arrears from 1995 to 1997 to Wuzhou Department directly to the Defendant Guidong Company. On Jan. 12, 1999, the Port United Co. paid to Guidong Co. RMB160,000. On October 8, 1998 and January 12, 1999, the Defendant Guidong Company issued payment receipts for the investments respectively in the amount of RMB100,000 and RMB160,000 to the Defendant Wuzhou Department. According to the business license for enterprise as legal person provided by Guidong Company when it responded to the action, the registration capital of the Company is RMB360,000. The date of issuing the license is January 21, 1999. On November 13, 2000, Wuzhou AIC provided the information on registration of enterprises, which states that: the subscriber of Guidong Company is changed to be Wuzhou Navigational Management Department, and the amount of subscription is RMB360,000. According to the receipt issued by Guangxi Bureau for the payment of waterway transportation administration fees from 1995 to 1997 received from Wuzhou Department and the certification issued by Guangxi Bureau on November 7, 2000, the Defendant Wuzhou Department has fully paid the waterway transportation administration fees from 1995 to 1997 in time. The collegiate bench holds that: this case is a dispute over damages arising from ship explosion. According to Article 16 of the Administrative Provisions on Fire Control of Vessels, the operations with naked fire on a vessel shall be subject to examination and approval; the operations with naked fire on vessels berthing at ports shall be examined and approved by the harbor superintendent department and filed to the PSB fire-control superintendent authority for record; the operators for the operations using naked fire must be certified before being qualified for their post. In violation of the above regulations, without carrying out the operations of cleaning, gas removing, detonable test for the tanker from which the methyl alcohol was just discharged and without making ensured that there was no combustible gas on the tanker, without prior approval by competent authorities concerned, ?°Gui Dong You 05?± employed unlicensed persons to carry out welding operation with naked fire, resulting in the explosion of the tanker and the property loss of the Plaintiff FAW-Volkswagen. The accident was caused due to the fault jointly committed by the master Zhou Tianwen who was in charge of safety management of ?°Gui Dong You 05?± and the welder Huang Yuangui. Pursuant to Article 130 of the General Principles of the Civil Law of the PRC, if two or more persons jointly infringe upon another person's rights and cause harm to him, they shall bear joint liability. The Plaintiff FAW-Volkswagen has the right to claim for the damages against the two parties or one party which have committed the fault. As the master Zhou Tianwen was employed by the Defendant Lin Wucai, the Defendant Lin Wucai shall undertake the civil liability for the loss incurred to the properties of the other persons due to the fault committed by his employee. Therefore, the claim of the Plaintiff FAW-Volkswagen against the Defendant Lin Wucai for indemnifying the loss of the vehicles in amount of RMB411,475 shall be supported. As the Defendant Lin Wucai has not paid the affiliation administration fee to the Defendant Guidong Company, Guidong Company took back the License for Engagement of Transportation from the Defendant Lin Wucai in March, 1999. The validity of the license has been exceeded when the accident occurred. Before the accident, the Defendant Guidong Company also issued the notice of terminating the affiliation relationship to the Defendant Lin Wucai, and the Defendant confirmed receipt of the same. Therefore, it shall be ascertained that the Defendant Guidong Company has terminated the affiliation relationship with the Defendant Lin Wucai. Furthermore, the Defendant Guidong Company is not the operator stated in the certificate of registry of vessel??s ownership for ?°Gui Dong You 05?±. When the accident took place, ?°Gui Dong You 05?± was actually operated by the Defendant Lin Wucai. Therefore, the Defendant Guidong Company shall not undertake joint and several liability for the indemnification. In view that the Defendant Guidong Company is not liable for the indemnification, and Guidong Company is a legal person enterprise incorporated according to law, it shall undertake the civil liability independently. As the investor of Guidong Company, the Defendant Wuzhou Department shall not undertake the civil liability on its behalf. When the accident took place, the Defendant Communications Company was not the investor of Guidong Company, therefore let alone it shall undertake the civil liability. It is without factual and legal basis for the Plaintiff FAW-Volkswagen to claim against the Defendants Wuzhou Department and Communications Company to undertake the joint and several liability for the indemnification, therefore its claim will not be supported. Pursuant to paragraph 2 of Article 117 of the General Principles of the Civil Law of the PRC, the judgement is rendered as follows: I. The Defendant Lin Wucai compensate the Plaintiff FAW-Volkswagen for the loss of properties in amount of RMB411,475; II. The litigation requests filed by the Plaintiff against the Defendants Guidong Company, Communications Company and Wuzhou Department shall be dismissed. The case acceptance fee for this case in RMB8,682 shall be undertaken by the Defendant Lin Wucai. The case acceptance fee prepaid by the Plaintiff will not be refunded by this court. The part to be undertaken by the Defendant Lin Wucai shall be directly paid to the Plaintiff. The above-mentioned obligation of payment shall be accomplished within 10 days after this judgement takes effect. If any party is not unsatisfied with this judgement, it may submit a statement of appeal to this court within 15 days upon service of this judgement, together with copies corresponding to the number of the opposite parties. The appellate court shall be the Higher People??s Court of Guangdong Province. Presiding Judge: Wu Zili Judge: Deng Yufeng Judge: Huang Qiusheng December 12, 2000 Court Clerk: Tan Shumin