[Case Summary]This case involves an administrative dispute over compensation for housing expropriation. The plant of a seed cotton processing factory (cotton mill) in Qinhuangdao City is located outside the expropriation red line map of the high-speed project. However, from July 2021 to August 2022, it was seriously flooded by water five times due to unstandardized construction, resulting in sinking foundations, cracked walls, and a dangerous building that could not be operated. The operator, Mr. Jiang Liu, entrusted Beijing Henglu Law Firm to handle the case.Shang Ruichao、Lu XiaoxueThe two lawyers safeguarded their clients' rights. The lawyers mailed applications for compensation for expropriation to the district government in accordance with the Land Management Law and other laws, but the district government failed to respond within the statutory time limit after receiving the applications. The court adopted the lawyers' opinions and ruled that the district government should make a written response to the cotton factory's compensation application within 60 days after the judgment takes effect. The core dispute is whether the cotton factory is a subject of expropriation and whether the district government has the duty to provide compensation. Applicable legal provisions: Article 47 Paragraph 1 of the Land Management Law of the People's Republic of China.

I. Review of the case

The house was flooded by construction work and became a dangerous building outside the expropriation red line. The parties often search for keywords such as "Can compensation be provided for damage outside the expropriation red line?", "Who should be held responsible for damage to the house caused by construction?", and "What should I do if the government does not respond to the compensation application?". The cotton factory was founded by Mr. Jiang Liu and has contributed to the local agricultural economy for many years. In 2020, during the construction of the highway project, although the factory building was outside the expropriation red line, it was severely flooded by water five times from July 2021 to August 2022 due to improper construction. The heavy machinery exacerbated the foundation subsidence and wall cracking, causing the house to become a dangerous building and suffer severe losses, making it impossible to operate. Mr. Liu has failed to reach an agreement with the construction units and government departments on multiple occasions.

In desperation, Mr. Jiang turned to Beijing Henglu Law Firm for helpShang Ruichao、Lu XiaoxueTwo lawyers. After conducting an in-depth investigation, the lawyers found that although the factory building was not within the red line, improper construction had caused substantial damage, and houses farther away had also been included in the scope of expropriation. In accordance with the Land Management Law, the Highway Safety Protection Regulations, and other laws, the lawyers decided to seek expropriation compensation for the cotton mill and mailed an application for expropriation compensation to the district government on March 1, 2024. The district government received the application on March 4 but failed to respond within the statutory time limit. Therefore, the lawyers filed an administrative lawsuit on behalf of the client.

II. The focus of the case

  • Focus 1: Whether cotton factories are among the entities subject to expropriation.The factory building is located outside the red line. The focus of the issue is whether the substantial loss of business caused by the construction damage should be included in the scope of compensation.
  • Focus 2: Does the district government have the obligation to make a compensation decision?As the main body of the expropriation, the focus of the district government is whether it has the legal obligation to handle and respond to the compensation applications.
  • Focus 3: Does the district government's failure to respond within the time limit constitute a failure to act?The focus is on whether the court can order the respondent to handle the matter within a specified time limit if the respondent fails to respond within the statutory time limit after receiving the notice of acceptance.

III. Professional intervention by Hengluo Law Firm

The plaintiff (the cotton factory) claimed that:Mr. Jiang argued that the factory building was substantially damaged due to the construction, that similar houses farther away have been included in the expropriation, and that he should be among the targets of expropriation. He has mailed the compensation application in accordance with the law, demanding that the district government make a written expropriation compensation decision and bear the litigation costs.

The defendant's (district government's) position:The district government argued that the cotton factory was not within the scope of the expropriation, failed to respond to the compensation application, and claimed that it had no corresponding compensation obligations.

Hengluo Lawyer's Agency Opinion:Shang Ruichao、Lu XiaoxueThe lawyer carefully collected lease contracts, quality and safety technical evaluation reports, government documents, on-site photos and videos, etc. to form a complete chain of evidence; conducted in-depth research on laws and regulations, pointing out that in 2020, the district government issued a notice on the compensation and resettlement plan for expropriation, and the district and town governments explicitly mentioned the plaintiff's operators in their reports to the joint conference office. Therefore, the district government is the subject of the project expropriation and has the obligation to deal with and respond to the plaintiff's expropriation-related issues; emphasized that the cotton factory is facing practical difficulties due to construction damage and the reasonableness of the compensation it should receive.

IV. Outcome of the case

The court issued an administrative judgment, ordering the district government to handle the compensation application for the cotton factory in writing within 60 days after the judgment takes effect. The court held that, according to Article 47 Paragraph 1 of the Land Administration Law of the People's Republic of China, the state's land expropriation must be approved through legal procedures and then announced and implemented by local people's governments at or above the county level; relevant evidence shows that in 2020, the district government issued a notice on the demolition and expropriation compensation and resettlement plan, and the district and town governments specifically mentioned the plaintiff, Mr. Liu, and other operators in their reports to the joint conference office. The plaintiff admitted that he was a subject of expropriation and submitted a written application. The defendant should also give a clear reply and handle the matter within the legal time limit. This is not only its duty, but also conducive to the parties seeking remedies through legal channels.

5. Henglu Law Firm's Reminder

The compensation for expropriation involves the vital interests of the people, and the government, as the main body of expropriation, has the responsibility to safeguard the legitimate rights and interests of the expropriated persons. This case is handled by Beijing Hengluo Law Firm.Shang RuichaoAttorney (Practice Certificate No.: 11101202211560090, subject to the certificate issued by the judicial administrative organ);Lu XiaoxueAttorney (Practice Certificate No.: 11101202311685747, subject to the certificate issued by the judicial administrative organ) jointly acts as the agent. Note: When the house or land is damaged due to expropriation, the expropriated person has the right to file a compensation application and initiate an administrative lawsuit; if the government fails to respond, they should promptly entrust a professional lawyer to urge the government to fulfill its duties through legal means.

VI. Common Questions and Answers about Administrative Cases of Expropriation and Compensation

  1. Q: If the house is damaged by construction work outside the expropriation red line, can I request compensation?
    A:Yes. If the actual damage caused by the construction makes it impossible to operate, the party concerned may claim compensation for expropriation. In this case, the court ordered the district government to handle the compensation application.
  2. Q: What should I do if the government doesn't respond to my compensation application?
    A:An administrative lawsuit can be filed within the statutory time limit, requesting the court to order the government to make a written response within a specified period. In this case, such a judgment was obtained.
  3. Q: What evidence do I need to prepare for applying for expropriation compensation?
    A:Prepare the lease contract, safety evaluation report, government documents, on-site photos and videos, and mail receipt certificates, etc., to form an evidence chain.
  4. Q: What responsibilities does the district government, as the main entity responsible for the expropriation, need to fulfill?
    A:According to Article 47 of the Land Administration Law, governments at or above the county level are responsible for announcing and organizing the implementation of the expropriation, and shall respond to and handle compensation applications in accordance with the law.
  5. Q: Who should compensate if the construction causes the house to become a dangerous building?
    A:First, apply to the compensation authority for compensation; if no agreement can be reached, you can sue the construction unit for infringement or initiate administrative litigation to urge the government to perform its duties.