2020 Shenzhen Education and Training Industry Legal Data Report.
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2021.03.22
1. Number of litigation cases
From the above line chart of the number of litigation cases from 2017 to 2020, it can be seen that the number of litigation cases of education and training institutions in Shenzhen has increased significantly in recent years, and the number of cases in 2020 has increased the most this year. This is closely related to the rapid development of the education and training industry in recent years, the accelerated injection of a large number of investment capital, the continuous expansion of the number of education and training institutions, and the impact of the epidemic on the daily business activities of education and training institutions in 2020.
2. Proceedings
As can be seen from the chart, 77.88 per cent of cases are resolved through the first instance process, so it is crucial for education and training institutions to have a good grasp of the first instance process.
3. Time limit for hearing litigation cases
As can be seen from the above figure, the trial time of litigation cases of education and training institutions is more in the range of 2-15 days. Compared with general civil litigation cases, the trial time of litigation cases in the education and training industry is shorter.
4. Main types of litigation cases
The number of litigation cases last year was 954, of which 875 were mainly concentrated in contract disputes, accounting for 91.82 per cent of the total, while most of the contract disputes were education and training contract disputes.
5. Analysis of the main focus of controversy
Since litigation cases in the education and training industry are mainly focused on education and training contract disputes, the following focuses on some of the main focus of the education and training contract dispute cases.
1. There is an agreement in the education and training contract that "if you fail the examination, you will get a full refund". If the student fails, should the education and training fee be refunded?
At present, the court's jurisprudence has determined that it should be returned. If the contract has been agreed in advance, it is an expression of the true will of both parties, and there is evidence to prove that the student failed the examination,The education and training institution shall refund the education and training fees previously paid to the party receiving the training in accordance with the contract.
Reference Case (2020) Guangdong 0303 Minchu No. 24409
2. After signing the education and training contract and paying the training fee, what legal consequences should the education and training institution bear if it does not provide training services and does not inform the students?
The education and training institution has established an education and training contract relationship with the student. If after collecting the training fee paid by the student, no training is organized and the class is suddenly suspended without informing the student, it constitutes consumer fraud. According to the provisions of Article 55, paragraph 1, of the Law on the Protection of Consumer Rights and Interests, "If a business operator commits fraudulent acts in providing goods or services, it shall, at the request of the consumer, increase the compensation for the losses suffered by the consumer, and increase the amount of compensation by three times the price of the goods purchased or the cost of the services received by the consumer; if the amount of the increase is less than 500 yuan, it shall be 500 yuan. If the law provides otherwise, it." Education and training institutions shall return training fees to students and pay punitive damages of three times the training fees.
Reference Case (2019) Guangdong 0309 Minchu No. 6107
3. Education and training institutions due to operational difficulties can not continue to provide training services, how to deal?
As a result of the epidemic, training institutions have closed down due to operational difficulties, and many litigation cases involve follow-up in this area. If the education and training institution is unable to continue to provide training services, resulting in the failure to achieve the purpose of the contract, the party receiving the training has the right to terminate the training contract relationship between the two parties.The training institution shall refund the remaining training fees and interest paid, the remaining training fees, the total amount of training fees/total hours x outstanding hours, the interest rate is the loan market quotation rate published by the National Interbank Lending Center.
Reference Case (2020) Guangdong 0304 Minchu 16315, (2020) Guangdong 0305 Minchu 19102
4. If the two companies cooperate on the operation of education and training projects, one party enrolls students in the name of the other party and rents its venue for training and teaching activities, should the nominal company bear joint and several liability for the debts of the company actually engaged in education and training activities and refund the training fees?
As a partner of the company that actually provides education and training services, the company in the name of the outside world provides teaching venues in the actual performance process, and allows the other party to use its name to recruit students, so that others can recognize that the two companies jointly hold training.In the absence of a clear legal relationship and sharing of responsibilities between it and the company that actually provides education and training services, it shall be jointly and severally liable for the debts of the company.
Reference Case (2020) Yue 03 Min Zhong 21961
5. What is the effect of the provisions in the education and training contract that "if training cannot be carried out due to Party B's reasons, Party B's guardian shall be responsible and the expenses will not be refunded?
According to Article 9 of the "the People's Republic of China Consumer Rights Protection Law": "Consumers have the right to independently choose goods or services." Article 53 stipulates: "Where a business operator provides goods or services in the form of advance payment, it shall provide them in accordance with the agreement. If it fails to provide in accordance with the agreement, it shall perform the agreement or return the advance payment at the request of the consumer; and shall bear the interest on the advance payment and the reasonable expenses that the consumer must pay." The agreement in the contract that "if the training cannot be carried out due to Party B's reasons, the guardian of Party B shall be responsible for it, and the expenses will not be refunded" is the unilateral exemption form clause provided by the education and training institution as the operator, which does not conform to the principle of fairness and reasonableness,This clause shall be invalid, and the consumer who receives the training service as an advance payment shall have the right to choose not to train, to request the termination of the contract and to refund the money, but shall deduct the necessary and incurred expenses.
Reference Case (2020) Yue 03 Min Zhong 17228
6. How is the refund amount calculated when the party receiving the education and training service requests to terminate the contract for its own reasons?
The act of terminating the education and training contract for its own reasons (such as moving house, etc.) is a breach of contract, and the party receiving the training service shall bear the corresponding liability for breach of contract. If the relevant liquidated damages clause is agreed in the contract, the liquidated damages shall be paid in accordance with the agreement and deducted from the refund amount. The court will also consider the reasons for the termination of the contract by the receiving party to determine the proportion of liquidated damages as appropriate.Refund Amount = Remaining Training Expenses-Liquidated Damages.
Reference Case (2020) Guangdong 0304 Minchu No. 50101
The above data sources:
Waco Advance-Legal Information Library
China Judgment Documents Network
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