Court Case To Decide Ownership of Ancient Baijiu Pits Tests Legal Reforms

The Sichuan high court has agreed to hear the case of the Yin family, who are suing Wuliangye (the name means 5 grain liquor) for seizing 16 baijiu pits. Baijiu has been fermented continuously since the Ming Dynasty in some of these pits. Bottles of liquor made in these pits sell for hundreds of dollars more than even the high-end spirits.

This case was considered dead about 5 years ago, but the high court has revived it. It is a test case for legal reform that aims to reduce abuses by local courts.

“The ultimate goal should be the restoration of judicial legitimacy.”

NC: What are the biggest problems with China’s judiciary, and how will these be addressed?

Chen Weidong: One major highlight of the legal reform [agenda] is to curb the external influence of local authorities over the court system. One primary problem with China’s judiciary is that court administration is highly localized. According to the Constitution, judicial power rests solely with the central government. But in reality, as local courts are locally funded and staffed, they are subject to [localized] political influence. The result is that local courts often do not serve the people, but local governments, and often make rulings based not in law, but in political expediency.

This is what the new round of legal reforms unveiled during the Third Plenum aims to tackle. In the future, courts at the county level will be funded by provincial governments, with provincial courts funded by the central government, freeing both from the influence of local interests.

In June 2010, Yin Xiaogong, speaking for the descendants of the Yin clan, accused Wuliangye and the local government of taking their private property. The local Yibin county court refused to hear the case. Wuliangye is a large company in Sichuan, let along the Yibin county where it is located. The court tossed a scalding hot potato by passing on the case. There's no evidence of corruption in this case, but the local court's refusal to hear the case raised suspicions. The family is suing for ￥300 million yuan.

Southern Metropolis Daily covered the case in 2010. 南都：五粮液明代酒窖产权之争. The family has documents showing a lease agreement with Wuliangye in 1952 and a government document from 1984 showing their property rights.

The pits were built during the 14th Century in the early Ming Dynasty, making them over 600 years old.

The SMD article is very detailed. Another article covering the details of the case is here: 五粮液600年酒窖产权之争始末：酒窖已遭破坏

Economic Observer looks at the legal reform angle:

The so-called judicial localized long, long time, human, financial, and material resources of the judiciary from the executive control and management at all levels: local courts rely on funding local government supply; staffing decision by the local government; place each improve working conditions level court, updating equipment, and local governments rely on the approval of relevant departments. This situation led to the judiciary in the application of the law of sentencing susceptible to interference or potential threat to the local government. The consequence is the loss of the local levels of the Court as a national judiciary should be neutrality, but rather as the protection of local interests and the interests of justice sector tools, courts in some countries has become "the place of the court."

In February, the comments against the people's court. "April" outline for the reform of the Supreme Court issued proposed to highlight the central powers attribute jurisdiction; and the requirements for court reform, the establishment of an appropriate system of separate jurisdictions and administrative divisions to ensure that people's courts exercise judicial power independently and impartially according to law reform initiatives also directed the two "local justice" of the drawbacks.

Now it seems that these reform measures proposed for the localization of Justice are from a small part of the operability start filing the registration system is one of them. May 1 start of the full implementation of the national court filing registration system, at the same time the Supreme Court, the official also stressed that shall be established in the prosecution of filing the registration conditions, to raise the threshold to initiate or engage in artificially controlled, engage internal local policies.

Wuliangye ancient pits the subject of more than 300 million yuan case case involves numerous, complex facts, both historical origins, the decision will have a significant impact on society, it has become the focus of media attention. For the Sichuan Higher People's Court and the relevant judge is certainly a challenge, but more importantly, the awful years of "dead case" can be placed on file, and finally independent judgment by the court according to the law, it is the credibility of the current judicial reform and justice a test, its impact is certainly more than the aged wine Wuliangye long.

EO: 五粮液古窖案是司法“去地方化”的试金石

Video （中文） after the jump.



SMD article: 南都：五粮液明代酒窖产权之争

Yin descendants

　　Remove historical heritage and historical records, cellar Yin private property and documented.First, since 1952 Wuliangye lease contract signed with Yin; the second is the Yibin municipal government (1984) Zi No. 454 files.

　　Wuliangye

　　Already in 1995 and 1996 respectively, a wine cellar purchase top of the plant and Yin retention room, so that pits property owned by Wuliangye Co., Ltd. all.

　　Yibin city government sources

　　No. 454 document was the Yibin city government for public-private partnerships to correct errors in the process, but really right for the cellar is the wrong approach.

　　"Hair up" the cellar

　　Today is Wuliangye 501 workshops, 600 years of history, known as the "Wuliangye based foundation, where the essence of the essence."

　　Yin Shi was built during the early, 尹家世 behalf of brewing grains wine, to the Ming and Qing has formed 16 breweries pattern of pits. 1952 --- the predecessor of Yibin Wuliangye state wineries twenty-four its inception, will begin with the "hair up" the cellar owner Yinbo Ming signed a contract to lease wine cellar.

　　"These old pits Wuliangye ...... it is the foundation of the famous foundation, where the essence of the essence."

　　No. 32 Gulou Street. It is located in the midtown area of ​​Sichuan Yibin ancient alleys of an antique building, red lacquer antique doors, on both sides of couplets, decorated with carved, was to make the vicissitudes of life.

　　As China's oldest existing crypt Liquor fermented pool, "hair up" has more than 600 years old.Now, it is part of the world famous wine Wuliangye workshop, still maintains most of the original manual work, workshop wall woodcut Interlocking pattern, woodcut Phoenix Peony on the QT, the years covered texture. Into it, like walking into history.

　　But in the past three months, about its ownership issues involved in a multi-stakeholder wrestling was brewing spread.

　　Party interest groups is already tradition in this family 19 generations of descendants of Yin Shi, whose cellar was regarded as "inalienable patrimony"; on the other Yibin municipal government departments, in the "public-private partnership" reform, wine cellar has been done by national capital of state-owned assets to the conversion. After the founding of the PRC has been rented cellar Yibin Wuliangye Co., then kept silent.

　　Renewal storm

　　The lease began 60 years ago suddenly broken: Wuliangye notice Yin family, "hair up" pits property rights to all of its, not renew

　　Letter from a paper storm began.

　　Accordance with past practice, in mid October last year, Yin Xiao-gong to have to rent their ancestral "hair up" the cellar Yibin Wuliangye Co., Ltd. (hereinafter referred to as Wuliangye) sent a letter, and then two months, the lease will expire, I hope the other side ready to renew as soon as possible. Yin Xiao-gong is one of the owners of the nineteenth generation heir to the cellar Yin's family.

　　This time, Wuliangye no longer its renewal. Instead, a notice of Yibin Wuliangye Co. inscribed in December 30 sent Yin Xiao-gong home, notice stated, "Wuliangye already in 1995 and in 1996 purchased the top of the plant and the cellar, respectively, Yin retention room , so that pits property owned by Wuliangye Co., Ltd. All. " Therefore, "from 2010 is no longer signed for about renewal agreement with you."

　　Together with an indication of there, "Wuliangye shares of the company's original state invested assets are formed over the years," Yin if there are objections to the major shareholder in Yibin State-owned Assets Management Co., Ltd. for a review. Wuliangye 1998 at the Shenzhen Stock Exchange A share market, as the largest shareholder in Yibin City Guozigongsi to 2009, its stake has been to 56%.

　　The notice, let Yin Xiao-gong to feel ownership of ancestral property are denied. Three days ago, she had just learned the news, "hair up" the wine cellar was declared a national heritage conservation units.

　　In fact, since 1952 Wuliangye Yibin state-run predecessor --- twenty-four winery was first established, it has been working with "hair up" the cellar owner Yinbo Ming (father of Yin Xiao-gong) signed a contract, lease, "hair up" wine cellar began. Over the same period, as well as leased Yibin "Icheon Wing" and many other ancient pits mouth.

　　According to the information provided by Yin, YIN Jia Wuliangye lease contracts signed since the beginning of 1952 to 2007 a total of only nine, the time span for the 1952-2009 year, including pause "Cultural Revolution" during the 1966 to 1976 decade. These facts, the reporter access to information to be verified.

　　According to Yin Xiao-gong to say, back in 2007, renewed in previous years it had not seem smooth. She said she then to the factory theory, he was told, "It is our house." Wuliangye shares of any president to find her Overhead, barely a year of renewal solve problems.

　　In mid-October 2009, again wrote to the Wuliangye has not received a reply after the renewal requirement, December 26, Yin Xiao-gong to the factory to negotiate again, this time the answer is: YIN Jia Wuliangye before the tenancy agreement is wrong This is state-owned assets.

　　Yin Xiao-gong for these remarks, reporters at the Wuliangye has not been confirmed.

　　Debate property of

　　Cellar state-owned assets? Cellar as plant appendages, property transfer has already occurred?

　　"Hair up" the cellar Wuliangye 501 workshop today. Into the labeled "production powerhouse, open to visitors," the iron gate, 30-subterranean liquor fermentation pits show in front, at around two areas, according to the "Southeast - Northwest" to order. The left and right column of the first mouth area "kitchen knife" and the right area in the left column of the first mouth "Wrench pit" of the Ming Dynasty wine cellar.

　　These cellars, including the "kitchen knife" and "Wrench pit", including 16 old wine cellar wine cellar Yinjia Zu Chuan, after the founding of the remaining 14 was built.

　　"Hair up" the cellar, was built during the early. YIN Jia Yibin, according to county records and family history, his people for generations wine-growing grains, originally Homebrew, only for banquets and gift. After the creation of "long-haired Syrian prefect rose Daqu burning room", by digging pits to the seventeenth century brewery form pattern 16 of pits.

　　In the 1960s, the rise of the Ming Dynasty pits hair cellar wall unearthed pottery shards, identified Sichuan Provincial Cultural Relics Management Committee potsherds early Ming, but identified early Ming Dynasty built the cellar.

　　Remove historical heritage and historical records, Yin believes cellar Yin private property and government documented. First, since 1952 Wuliangye lease contract signed with Yin; the second is Yibin Municipal Government signed in 1984 Yibin City Hall (1984) Zi No. 454 files.

　　File No. 454 main content has been determined that there is to, "in September 1958 to transform your house within the Drum Tower Street, No. 34, 36 have been reviewed, the housing area 18.17㎡ (mainland housing 18.17㎡, building square meters Department of building area), is the wrong change Housing, now should be corrected, return property from January 1, 1982. "

　　Below the file to pen handwritten note: "16 cellar belongs to all homeowners, buying price Wuliangye Distillery."

　　February 6, 1996, Yibin City Notary Office issued certificate again this is indeed the right. The certificate stated, after investigation, Yin Boming / Tang Qingying couple in Yibin City, the Drum Tower Street, 34, No. 36 has 18.17 square meters and house wine old pits 16. ...... Deceased left no will. Under the "People's Republic of China Inheritance Law", the deceased Yin Boming, 唐青英 legacy real estate, wine cellar ownership by their children Yinlan Yuan (Tin Hau), which ...... Yin Xiao Yin Xiao Gong, Yin Xiao root inheritance.

　　Another protagonist of the event, also has its own logic.

　　April 21 this year, Wuliangye Yibin city government and a symposium on the home wine cellar, conference led by the municipal leaders. It was revealed that at least include the following information: First wine cellar is state-owned assets, since the 1950s, public-private partnerships, similar property has long been nationalized; the second is document No. 454 in 1984 itself flawed; Third, cellar floor houses most of the government has been after Wuliangye lease purchase, wine cellar as appendages property transfer has occurred.

　　According to reports, before 1952, "hair up" the 16 old pits Yin is indeed the property, but in 1956 after the public-private partnership, applied for entry into public-private partnership initiative Yin Boming, and Wuliangye lease agreement signed by the formula / production includes wine cellar applied by rent, and since then, has changed ownership, including assets, including wine cellars have become state-owned all.

　　As for the formation of 454 files is also very complicated, Yin is an old revolutionary, veteran file is also in the form of intervention, there is a special historical background "plausible but not legitimate."

　　Beijing Heng Law Group attorneys Chan West's view is that the cellar all should go Yin.Wuliangye based company for many years to pay the rent YIN Jia, indicating both belong to recognize ownership of the cellar Yin; in addition to the "wine cellar is a plant appendage" was unacceptable, Yin cellar value far beyond the plant value, workshop and wine cellar, who dominated from Who judge also should compare the value on.

　　But for the file number 454 in Yibin city government came forward to comment on the cellar attribution, Chan West believes are not legally binding, Yin will be able to clear themselves based on historical ownership of the cellar, and Wuliangye company if the transaction occurs but also business practices, should be based on individual voluntary.

　　454 files

　　Yibin municipal government sources, the presence of 1984 No. 454 document, the Government in resolving a headache this dispute. At that time all the documents confirm cellar Yin is wrong

　　"Hair up" the wine cellar was originally the former shop and a factory workshop, is typical of Ming Dynasty architecture, of the first floor, divided into three vertical feed. According to the "Ming Dynasty" and "Yin Shi Genealogy" records, the early Ming Yin Yin's ancestors Syrian public in any state capital (now Yibin) do not drive, Yin's tribe by the yao'an (now Chuxiong States) moved, where one in Gulou Street settlers wine to liberation, that Yin Xiao-gong family.

　　For the "hair up" over the plant and the former wine cellar, Yin retention housing property whereabouts, it was confirmed that the following changes in property rights that have occurred a few times.

　　Wuliangye established from 1958 to 1984, Yin voluntarily own 1149.85 square meters of rental housing and ancillary facilities for national by the rent; File No. 454 issued after 1984 under Yibin Municipal People's Government, as the business continues to develop, wine cellar on the property have reverted Wuliangye Group.

　　December 1995, Wuliangye and Housing Authority signed a transfer contract to buy the City Housing Authority leased enterprises plant 1035.81 square meters. Three months later, according to the government from the coordination, Wuliangye and YIN Jia heir Yin Xiao-gong 7 people signed a deal to buy the Yin of the retention housing 253.31 meters.

　　September 1998, Wuliangye on the "hair up" the cellar applied for heritage conservation, finally identified as the provincial cultural relics protection units; and in 2000, when made housing ownership certificates, warrants Cuiping Yibin City Housing word article 0002278 number.

　　However, after obtaining the housing ownership certificates of 2000, Wuliangye still rent way to get "hair up" the right to use the cellar.

　　1984 Yibin Municipal People's Government Document Number 454, seems to have become a not open around Canton, also in the fight for the storm cellar, both sides agree the key.

　　Yin Xiao Gong believes YIN Jia Yibin city government in the form of housing in the cellar recognized as through renting while, on file confirmed cellar YIN Jia private property; Wuliangye confirmed the facts have been obtained over the ownership of the house wine cellar, but As to whether the wine cellar should appendages nationalized, then did not comment. For the identification of state assets, but also beyond the purview of an enterprise.

　　Yibin municipal government department sources, the presence of 454 documents, but also make the government a headache in resolving this dispute. File form 1984, was the Yibin municipal public-private partnerships to correct errors in the process, which, for Yin 18.17 meters from the housing correction is correct, but certainly right for the cellar is the wrong approach.

　　The source said that at the time of the historical background, the production data were private "is indeed the right" is not possible. The beginning of 1956, the climax of a nationwide socialist transformation occurs, the deployment of production by the state to use, in addition to fixed-rate capitalists, the capitalists no longer exercise the functions and powers of identity. September 1966, the expiration of fixed income years, public-private partnerships and finally into a socialist state ownership.

　　"If correct, it is a violation of the then National policies and regulations, so the country should be carried out and corrected."

　　Wuliangye interior, which also is regarded as historical legacy. In a January 31, 1993 issued by the former operators to Wuliangye Distillery Factory's comments indicated that the document No. 454 approved Yin Boming said property ownership. Based on the above, the proposed three options.

　　First, the "national income growth index and Yin Sichuan Province in 1957 was, according to the base rent, property ownership is determined after growth index, calculated since 1993 rent"; the second is the actual capacity of existing enterprises Cellar creation of retained profits, determining a ratio of the amount of rent. The third option is a one-time buyout.

　　The opinion together with an indication, in view of corporate non-asset owner representatives, and other causes of the current mechanism, I plant is not easy to deal with such historical issues, it is best engage relevant government agencies, the implementation of assessment of the value of the property involved in the matter. Press the arbitration proceedings.

　　Finally, Wuliangye program was established to continue the lease, "annual rent of 1,737 yuan, the rent paid by the annual growth rate of 6 percent."

　　"Mud pit more expensive than gold."

　　Some lawyers told her "rent 10 million per year should be, as for the purchase, and that it should be priceless."

　　Although the parties to the dispute continued, but were recognized by the fact that the history of heavy precipitation aside aside, "hair up" real economic value is very considerable.

　　Yibin Yangtze River and Jinsha intersection, in the nineteenth generation Sun Yibin Yin Yin Shi Xiao-gong narrative, ancient pit hair l siting, well-placed, "Lu Taishi east, west county government, North View East Building, south of Little Drum "in the most prosperous Drum Tower Street, business is booming. Drum Tower is the highest place in the seat of Yibin terrain, even if the flood came, and no one flooded pits.

　　"People's Daily" told the National Museum Long-liter wine cellar pit mud have been reported, the researchers mentioned have been tested and found per gram of ancient mud pit containing hundreds of species, more than 1 billion microorganisms, form a large microbial communities, the quality of the wine which plays an important role.

　　And YIN Jia Wuliangye lease, the rental is a yearly basis, to the 1980s after up speed rapidly.According to previous lease contract, from 1952 to 2007, the rent is 35 yuan per year, respectively, 50 yuan, 55 yuan, 150 yuan, 8,890 yuan, 198 000, 217 800, 22.4334 and 23.1064 ten thousand million and its net worth has been up 6600 times.

　　But Yin opinion, this is far did not reflect its true value. Yin Xiao-function "of a gram of mud pit more expensive than a gram of gold" to describe the value of the cellar. She said that had already consulted another large winery, which is also a listed company, "Their four old pits, yet our long years, but the stock price when the market is 34 million per port, now 4 mouth is more than two billion. "She said she did not know." hair up "value, but a lawyer told her that" 10 million annual rent should be, as for the purchase, and that it should be priceless. "

　　If the liquor on the map "Six Golden Flowers" and Maotai connected, there will be an interesting discovery, from north to south Jiannanchun Tuopai(24.87,-0.43,-1.70%) , Quanxing Okuma, Luzhou old Pit(24.14,-0.18,-0.74%) , Wuliangye, Langjiu, Maotai form a tall glass, Yibin Wuliangye, Luzhou just in bottom of the cup.

　　Wuliangye on the "hair up" the value of old pits the Ming Dynasty have fully identified. South Sichuan proverb says, "Millennium bad years old cellar, wine good old pits must be obtained." The old pit, pit mud flavoring substances and microorganisms microorganisms multiply and the more, the more concentrated wine.

　　Wuliangye external publicity, old pits the Ming Dynasty is in an important position. In an information Wuliangye that, in its own pool of the old cellar, especially valuable is the early Ming Dynasty, "the Drum Tower Street old pits," "the pit cellar has over 600 years of age. These old pits still In production, the highest rate of high-quality wine production, wine quality the best, most concentrated aroma. This is based on the famous basis of Wuliangye, the essence of the essence. "

　　Former Communist Party United Front Work Department, Yibin prefectural when founding Ren Yibin Municipal Committee, after having Shu thick bell, author recalls and YIN Jia Wuliangye cellar origin. He said that on Wuliangye, objectively speaking Yibin old cellar of the oldest in the Ming Dynasty Yin. Yin Jiashi on behalf of the business bad housing, engage in grains Yin wine is out first. YIN Jia Wuliangye not sell, during and after the Revolution can not buy their wine.

　　"In 1953, Yin Boming (father of Yin Xiao-gong) suddenly came to me that bottle of wine to mention, wine 'Wuliangye' home in a small amount of inventory has been archived, and are not allowed to continue to bake (after the liberation of countries had implemented liquor monopoly policy) , worried that lost, "Shu thick bell reported to the Administrative Office of the Commissioner, the 尹伯明 etc. come forward to invite Icheon Wing boss Deng Zixin were coming out, we continue to produce Wuliangye, Deng Zixin were started in the" Icheon Wing "pre-production, the expansion of pits," hair up "a dozen mouth wine cellar is also included to continue production Wuliangye.

　　Shu thick Bell concluded, "Yibin Wuliangye is 'Long l' and 'Icheon Wing' continuation and development down."

　　Have ownership certificates, no land certificate

　　Until now, both the Yin or Wuliangye, had not resulted in the cellar of land use permits, "The land ownership certificates and certificates of release is very special."

　　January 4, 2010, after receiving notice of Wuliangye, Wuliangye sent a letter to Yin Xiao-gong, told its notification is a serious infringement, hopes to recover before the end. They began to write a letter to reflect the Yibin City high-rise, "hair up" Yin is the property of parents who have made great contributions to the revolutionary cause.

　　March 15, Yibin State-owned Assets Management Co., Ltd. Yin Xiao-gong to understand the situation. Yin Xiao Gong said the person in charge of state assets, after hearing her detailed description of the inheritance relationship with the various types of evidence, Yin and wine cellar, so Yin and propose solutions, Yin insisted after talks clear property rights, coordinated progress failed to appear .

　　The fact that, until now, or whether it is Yin Wuliangye, had not resulted in the cellar of land use permits.

　　2008, with Wuliangye appear after the renewal of unpleasant, Yin had to go through 16 the bureau hopes cellar land ownership certificates, was rejected. And although the company Wuliangye cellar housing ownership certificates, it has not achieved 16 cellar land certificate.

　　"The ownership certificates and land certificate peel is very special." Lawyer Chen Youxi believe that in the 1950s the national capital after the collectivization of land reclamation and numerous ways, including land property rights and property rights have undergone a considerable part transfer. The situation is rather special Yin, after several equity adjustments, although by the rent, but until the "Cultural Revolution", long hair rose wine cellar still in fact belong to Yin all.

　　Yin Xiao Gong said that until today Yibin city government again not to discuss the matter with Yin, "We want to give them an attitude," she said, whether it is to buy a rent, "at least two sides should first sit down and talk, right?"

　　The latest news is that the Yibin city government will soon make a decision on the dispute."This thing Yibin municipal government attach great importance not only Yibin Wuliangye large enterprises, also in Sichuan, it is, we will be properly handled according to the law state, to safeguard the interests of all parties, but it also requires a process. "an unnamed official said.

　　Wuliangye still on the media remain silent. Only that carries 600 years of history of old pits still wheezes running back and forth several shirtless older workers busy. See a reporter to take pictures, he stopped working, and as far away from the camera lens, "Do not shoot Caesar, one day, if not the pits, on which we can eat Oh?"