Interpretation (2022) of Supreme Peoples Court No. 16 on certain issues relating to the application of law in civil forest resource dispute cases (adopted by the Supreme Peoples Court Judicial Committee at its 1869th meeting, on 25 April 2022, with effect from 15 June 2022)

    In order to properly try cases of civil disputes over forest resources and protect the ecological environment and the legitimate rights and interests of the parties in accordance with the law, according to the provisions of the Civil Code of the Peoples Republic of China, the law on the protection of Environment in the Peoples Republic of China, the Forest Law of the Peoples Republic of China, the rural land contract law of the Peoples Republic of China, and the Civil Procedure Law of the Peoples Republic of China, this interpretation is formulated in the light of trial practice.

    Article 1 in handling civil disputes involving forests, trees, woodlands and other forest resources, the Peoples Court shall abide by the green principles of the Civil Code, Respect Nature, history and customs, promote the unity of ecological, economic and social benefits of forest resources protection and utilization in accordance with the law, and promote harmonious coexistence between man and nature.

    Article two hundred and thirty-four of the Civil Code, the parties to a civil action to seek recognition of rights in respect of a dispute over the ownership or content of a property right in respect of a forest land or tree arising out of the following acts, the Peoples Court shall be accepted in accordance with the law as follows: 

(1) forest land contract, 

(2) exchange and transfer of the right to contract and operate the forest land,

(3) transfer of the right to operate the forest land, 

(4) transfer of forest trees,

(5) guarantee of forest land and trees, 

(6) succession of woodland and forest trees

(7) other acts causing changes in real rights of woodland and forest trees.

   If a party concerned initiates a civil lawsuit because of a dispute arising from the act of confirming the right or registration of a forest land or tree made by the utive branch, the Peoples Court shall inform the party concerned to settle the dispute through administrative reconsideration and administrative proceedings in accordance with the law.
   Article 3 the parties shall, on the ground that they have not gone through the formalities of approval, registration, filing, examination, examination, etc. , the Peoples Court shall not support the invalidation of such contracts as forest land contract, exchange or transfer of forest land contract and management rights, transfer of forest land management rights, transfer of forest trees, guarantee of forest resources, etc. . If, for the reasons set out in the preceding paragraph, a party who is unable to obtain the relevant rights requests that the contract be rescinded and that the breaching party be held liable for breach of contract, the Peoples Court shall support such request in accordance with the law.

    Article 4 where a party disposes of a forest land or tree without the consent of the co-owner as specified in a certificate of rights, such as a forest title certificate, in accordance with the law, and the other party claims to acquire relevant rights, the Peoples Court shall not support it. Except where it meets the requirements of article three hundred and eleven of the Civil Code on acquisition in good faith.

   Article 5 the Peoples Court shall support a claim by a party that a collective forest land contract is invalid on the ground that it violates the democratic agreed procedures provided for by law. Except in the following cases: 

(I) when a contract is concluded, there are no mandatory provisions on the Democratic agreed procedure in laws and administrative regulations 

(II) when a contract is concluded without discussion and decision on the Democratic agreed procedure, or if there is a flaw in the democratic agreement procedure and the court of First Instance has corrected it before the conclusion of the debate in accordance with the law 

(III) the contractor has reasonably examined the resolution of the villagers meeting or the villagers representative meeting, they did not know and should not have known that the resolution was forged, altered and had already invested heavily in forest land.

    Article 6 where a contractor of a family contracted forest land transfers the contracted management right of the forest land without the consent of the contracting party, or the transferee is not a member of the collective economic organization, and the transferee claims to obtain the contracted management right of the forest land, the Peoples Court will not support it. However, unless the employer does not have a valid reason for disagreeing or postpones taking a stand.

    Article 7 where the parties conclude a contract for the transfer of multiple management rights of the same collective forest land and, if the contract is valid, the transferee claims to obtain the management rights of the forest land, it is obtained by the transferee in the following circumstances: 

(1) the woodland management right has been registered according to law

(2) the woodland management right has not been registered according to law 

(3) in the absence of the preceding two provisions, the contract takes effect first. If the party who has not obtained the right to manage forest land requests that the contract be rescinded and the breaching party be held liable for breach of contract, the Peoples Court shall support it in accordance with the law.

    
       Article 8 The Peoples Court shall support the request of the family contracted forest land contractor for rescission of the contract and recovery of the forest land on the ground that the owner of the forest land management right has transferred the forest land management right again without authorization. Except where the owner of the forestland management right can prove that the contractor has agreed in writing to the recirculation of the forestland management right.

       Article 9. The Peoples Court shall not support a claim by a member of a collective economic organization that the contract for the transfer of the family contracted forest land management right shall be void on the ground that his or her priority under the same conditions has been infringed If it requests compensation for losses, it shall support it according to law.
     
       Article 10 if, during the period of a forest land contract, the contractor changes due to reasons such as the exchange, transfer or inheritance of the contracted management right of the forest land, and the forest land operator requests the new contractor to continue to perform the contract for the transfer of the original forest land management right, the Peoples Court should be supported. Unless otherwise agreed by the parties.

 Article 11. The period of circulation stipulated in the contract for the transfer of forest land management right exceeds the remaining period of the contract period, or the period of circulation stipulated in the contract for the retransfer of forest land management right exceeds the remaining period of the contract for the transfer of the original forest land management right, where the parties to a contract for the transfer or re-transfer of forest land management right claim that more than part of the contract is invalid, the Peoples Court shall not support it.

 Article 12 if the contract for the transfer of forest land management right exceeds the remaining period of the contract period, the Peoples Court party shall support the claim that the contract for the transfer of the excess part is not legally binding on it. Except where the employer knows or ought to know about it. If the contract for the recirculation of forestland management right exceeds the remaining period of the original contract, the contractor shall support the Peoples Court if the contract for the recirculation of forestland management right is not legally binding on the contractor. Except where the contractor knows or ought to know about it. If, for the reasons mentioned in the preceding two paragraphs, the contract for the transfer of forest land management rights or the contract for its re-transfer can not be performed, and the party concerned requests that the contract be rescinded and that the party in breach be held liable for the breach, the Peoples Court shall support it in accordance with the law.

    Article 13 when the contract for the transfer of forest land management right is terminated, the above-ground forest trees planted by the owner of the forest land management right shall be dealt with in accordance with the following circumstances:

 (1) if there is an agreement in the contract, it shall be dealt with in accordance with the agreement, except where the agreement shall be deemed invalid in accordance with Article One Hundred and fifty-three of the Civil Code 

(2) If the parties extend the term of the contract by consensus until the end of rotation or other reasonable period, and the contractor requests the owner of the forestland to bear the forestland use fee, the reasonable part of the contract shall be supported

(3) if the contract is not agreed upon or is not clearly agreed upon, and the parties fail to reach consensus on the extension of the contract period, and the owner of the forest land management requests compensation for the value of the forest, the reasonable part thereof shall be supported. Upon termination of the woodland contract, the above-ground forest trees planted by the contractor shall be treated with reference to the provisions of the preceding paragraph.

      Article 14 a contract Peoples Court by the party concerned for the purpose of utilizing forest land resources and forest landscape resources of public welfare forests to carry out under-forest economic activities, forest tourism, forest health and maintenance, etc. , we should consider the requirements of ecological location protection, ecological function of non-commercial forest and rational utilization of non-commercial forest, and determine the validity of the contract according to law. The Peoples Court shall not support a claim by a party that the operation contract is invalid on the ground that it relates to non-commercial forests only.
      Article 15 a mortgage shall be established on forest resource assets that are not prohibited to be mortgaged by laws or administrative regulations, such as the right to operate forest land and the ownership of forest trees, if the debtor fails to perform the debt due or realizes the mortgage right as agreed by the parties, and the mortgagee and the mortgagee agree to discount the assets of the forest resources mortgaged, and request to take over the management of the mortgaged property accordingly, the Peoples Court supports it. If the mortgagee and the mortgagee fail to reach an agreement on the way to realize the right to mortgage the forest resource assets, and the mortgagee applies for the realization of the right to mortgage in accordance with articles two hundred and three and two hundred and four of the civil procedure, the Peoples Court shall, in accordance with the law, order the auction and sale of the mortgaged property.
    Article 16. In the event that the debtor fails to perform the debt due or realizes the real right of security as agreed upon by the parties by providing security through compensation proceeds from forest ecological benefits, forest carbon sequestration, etc. , if the holder of the security interest requests priority for compensation of the secured property, the Peoples Court shall support it in accordance with the law.
    Article 17. Where the damage to the ecological environment of a forest is caused in violation of state regulations and the ecological environment can be restored, the organs or organizations prescribed by the state or by law shall, in accordance with Article One Thousand, two hundred and thirty-four of the Civil Code, if the Tortfeasor is requested to undertake the responsibility of repairing the forest by replanting trees, restoring vegetation, restoring the soil properties of the forest land, and releasing the corresponding biological Peoples Court within a reasonable period of time, the state party shall support it in accordance with the law. If the Peoples Court decides that the Tortfeasor shall bear the responsibility for forest restoration, it may also determine the costs of forest ecological environment restoration that the tortfeasor should bear if it fails to fulfill its restoration obligations within the time limit.

    Article 18 if the Peoples Court decides that the infringer shall bear the responsibility for the restoration of the forest ecological environment, it may, based on the appraisal opinions, or, by referring to the professional opinions issued by the competent Forestry Department, the Forestry Investigation, planning and Design Unit, the relevant scientific research institution and personnel, reasonably determine the forest ecological environment restoration plan, the specific requirements for the Tortfeasor to fulfill the obligation of repair shall be made clear.

    Article 19. The Peoples Court shall determine, in accordance with Article One Thousand, two hundred and thirty-five of the Civil Code, the amount of compensation to be borne by the infringer for damage to the ecological environment of the forest, the ecological and environmental services functions of damaged forest resources in regulating climate, carbon sequestration and sequestration, protecting biodiversity, water conservation, soil and water conservation, wind and sand control should be comprehensively considered, to be reasonably determined.

Article 20 where a party requests to subscribe for a certified forest carbon sink as a substitute for fulfilling the liability for compensation for forest ecological and environmental damage, the Peoples Court may grant the consent in accordance with the law, taking into account the views of the parties and the reasonableness of the different modes of liability.

  Article 21where the party concerned requests that the liability for compensation for damage to the ecological environment of a forest be fulfilled by means of services such as forest management, protection of wild animals and plants, community services, etc. , the Peoples Court may consider such factors as the Tortfeasors willingness to pay compensation, financial ability, ability to work, the amount of compensation, and the corresponding local wage rate to decide whether or not to grant permission, and reasonably determine the labor compensation program.

       Article 22 if an infringer voluntarily makes a deposit as a guarantee for fulfilling the obligations of forest ecological environment restoration, the Peoples Court may use the deposit for the purpose of restoring the forest ecological environment if he fails to fulfill the obligations, to pay for the restoration of the forest ecological environment.

        Article 23this interpretation shall take effect from 15 June 2022. If the judicial interpretation promulgated by this Court before the implementation is inconsistent with this interpretation, this interpretation shall prevail.