DeHeng Upheld Rights of Seed Enterprise, Safeguarding National Food Security
2025-08-28
In June 2024, partners Hu Qixiu and Zhang Yingying from DeHeng’s Jinan Office were mandated by a well-known seed enterprise in Jilin Province to file a lawsuit against a company in Xinjiang and an individual, Li, regarding the production of substandard corn seeds, seeking return of goods, refund of seed payments, and compensation for losses. Over the course of more than a year, the case progressed through a first-instance victory, a second-instance remand for retrial, and a retrial first-instance victory, ultimately resulting in a favorable judgment.
The key issues in dispute in this case were whether the corn seeds had quality defects and whether the Xinjiang-based company and its de facto controller, Li, constituted a commingling of personalities and should bear joint and several liability.
After accepting the mandate, the two lawyers conducted on-site inspections of the seed conditions at the enterprise. Based on the characteristics of corn seeds, germination rates, and appraisal documents, and in conjunction with the Seed Law and national quality standards for seeds as stipulated in “Food Crop Seeds Part 1: Cereals,” they conducted an in-depth analysis of the case. Fully considering the traits of corn seeds, such as their perishable nature, they promptly preserved evidence and commissioned quality appraisals.
Additionally, during the pre-litigation preservation stage, the representing lawyers found that the Xinjiang-based company had insufficient funds in its accounts, posing execution risks even if the case were won. Although Li was not a registered shareholder, director, supervisor, or senior manager of the company, he was the de facto controller behind the scenes. Relying on provisions such as Article 23 of the Company Law, they effectively demonstrated the commingling of personalities between the two defendants. Ultimately, the court ordered the Xinjiang-based company to return all contract payments to the client, compensate for losses, and held Li jointly and severally liable.
