Longyuan Construction Involved in Contract Trading Dispute; Jiangshan Court Rules It Bears No Direct Liability

March 12, 2026 – Tianyancha data shows that the China Judgments Online recently published a court document involving Longyuan Construction Group Co., Ltd. as the defendant. Case number: (2025) Zhe 0881 Min Chu 6978. The case concerns a sales contract dispute. The court is Jiangshan People’s Court. The judgment was issued on February 14, 2026. The plaintiff, Quzhou Longzheng Commercial Concrete Co., Ltd., won the case. The defendant, Longyuan Construction Group Co., Ltd., and its Quzhou branch, are not directly liable. Longyuan Construction is responsible for the shortfall in the branch’s assets and will bear supplementary liability.

Below is a detailed report:

Plaintiff Quzhou Longzheng Commercial Concrete Co., Ltd. claims that Longyuan Construction Group Co., Ltd. Quzhou Branch, contracted to build the first phase of the Baijiafang Community project in Quzhou Smart New City, purchased concrete from an outside party, and later transferred the receivable to the plaintiff. The branch still owes 4,160,783.29 yuan in payment. The plaintiff requests the two defendants to pay the owed amount, liquidated damages, and costs for debt realization. The plaintiff also argues that Longyuan Construction and the branch’s assets are commingled, and thus Longyuan Construction should share joint responsibility.

The defendant, Longyuan Construction Group Co., Ltd. Quzhou Branch, acknowledges the debt but believes the calculation of liquidated damages is incorrect and excessive. It also states that attorney’s fees lack evidence and should not be borne. The defendant, Longyuan Construction Group Co., Ltd., claims it is not an appropriate defendant and should not be liable beyond the contractual relationship.

The court’s investigation found that Longyuan Construction won the bid for the project. The branch signed a procurement contract with an outside party and confirmed the debt through account reconciliation. A debt transfer agreement was signed among three parties, specifying payment deadlines and breach responsibilities. The branch failed to pay on time, owing 4,160,783.29 yuan. The plaintiff paid 80,000 yuan in legal fees and 3,600 yuan for preservation security.

The court held that the debt transfer was legal and valid. The branch should pay the owed amount, liquidated damages (calculated at 0.02% per day), legal fees, and security costs. As a legal entity, Longyuan Construction is responsible for the shortfall in the branch’s assets and will bear supplementary liability. The final judgment requires the branch to pay the owed amount, damages, and related costs, with Longyuan Construction bearing the supplementary responsibility.

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