Liaoning Shunda Traffic Engineering Maintenance Co., Ltd. v. Panjin Kaiyue Economic and Trade Co., Ltd. (Dispute over Contract for Work)—Applicable Rules for Transforming Claim in Real Right into Claim for Real Right Damages

Abstract

In a contract for work, the proprietor provides the raw materials to be processed to the contractor, with the ownership of the raw materials being owned by the proprietor. After the performance of the contract, the proprietor’s request for the contractor to return the remaining raw materials is the claim in real right of raw materials. When the raw materials cannot be returned due to loss, in order to fully protect the interests of the real right holder, the protection method for creditor’s rights can be adopted by changing the proprietor’s claim in real right to claim for real right damages. Then by the proprietor should claim for damages against the contractor within 2 years after the proprietor knew or should have known the loss of the raw materials.

Collegial panel judges of the Supreme People’s Court for re-trial: Wu Jianhua, Dong Hua, Pan Jie (Written by: Wu Jianhua and Ma Hening, Supreme People’s Court; Translated by: Niu Benlin).