Procuratorate of Deqing County v. Insulation Material Company

A prosecutor from the Procuratorate of Deqing County in Zhejiang, China filed a civil public interest lawsuit against an insulation material company for illegally releasing Freon into the atmosphere. The court ruled that the company was civilly responsible for environmental pollution and to pay a fine for damage caused to the environment and atmosphere. This case is significant as it is regarded as the first public interest climate litigation case to be brought in China.

Background
An employee at an insulation material company was accused of illegally using Freon to produced combined polyether. While prosecuting the employee and company criminally, the Dequing Procuratorate also filed a civil public interest lawsuit against the company for the environmental damage caused by the release of ozone-depleting substances. The Standing Committee of the National People's Congress empowered procuratorates to file public interest litigation to prevent harm to the public interest, such as preventing environmental pollution or ecological harm.

Relevant Law and Principles

 * Implementation Measures For Pilots On People's Courts Hearing Public Interest Lawsuits Initiated By People's Procuratorates
 * Implementation Measures For Pilots on People's Procuratorates Initiating Public Interest Litigation
 * Environmental Protection Law of the People's Republic of China

Status
The civil public interest case was filed by the Procuratorate of Dequing County in early 2020 alongside criminal prosecution. The Huzhou Intermediate Court held a public hearing on the case on March 24, 2021 and ruled that the defendant be fined 740,000 yuan ($156,000 USD) as compensation for the environmental damage caused, as well as an appraisal fee of 150,000 yuan ($23,500 USD).

Takeaways
This case will not have a direct precedential effect as China does not follow a system of common law precedent; binding legal authority is primarily derived from statutes, laws, and rules created by the legislative branch. However, the highest court in China, the People's Supreme Court, publishes "Guiding Cases" which have binding legal effect and act similar to precedent. A Guiding Case is an abstracted legal rule derived from a case that has received approval from the Supreme People's Court. Judges trying cases with similar facts or legal applications must refer to a relevant Guiding Case in their opinion, otherwise a party may appeal or the ruling may be reversed. This case could potentially become a Guiding Case, as it is the first climate change-related public interest litigation on the books in China. In addition, the success of this case could embolden other prosecutors in China to bring similar climate litigation cases, leading to companies and government agencies being sued for failing to meet climate goals.

Links

 * https://www.clientearth.org/latest/latest-updates/opinions/china-s-first-climate-change-public-interest-case-could-herald-new-era/
 * https://law.yale.edu/sites/default/files/area/center/china/document/public_interest_litigation_china_background_memo.pdf