Asset Valuation: The “Professional Assistant” in Environmental Public Interest Litigation
Release time:
2016-01-20
Source:
Key takeaway: Using technology to support environmental public interest litigation and leveraging data to quantify the value of ecological damage—this undoubtedly represents a powerful contribution that the asset valuation industry can make to environmental public interest litigation.
2015 Year 10 Moon 29 morning of the day 9 At that time, the first environmental civil public interest lawsuit following the implementation of China’s newly revised Environmental Protection Law was heard at the Intermediate People’s Court of Nanping City, Fujian Province.
In the first-instance judgment, the defendants Xie, Ni, Zheng, and Li were found to have jointly committed a tort and are required to compensate for the ecological damage they caused and restore the functions of the damaged forest land.
Meanwhile, Lin Dongbo, the vice president of the Nanping Intermediate People's Court, was... 10 Moon 29 At a press conference today, it was stated that, following the enforcement of the newly revised “Environmental Protection Law,” the first nationwide judgment in an environmental public interest civil lawsuit filed by a social organization has become effective, and this ruling holds certain reference value for the adjudication of future environmental public interest civil litigation cases.
Among these measures, the introduction of a system allowing expert assistants to appear in court is a major highlight of this trial.
On this point, Song Li, General Manager of Beijing Zhonglin Asset Appraisal Co., Ltd., said: “The role we played as expert assistants in the trial of this environmental public interest lawsuit fully demonstrates that asset appraisal—as a professional technical support—can provide scientifically sound and reasonable professional grounds for claims in environmental public interest litigation. This offers a fair and objective technical boost to both the plaintiff and the defendant.”
The first environmental civil public interest litigation introduces a system allowing expert assistants to appear in court.
This tort liability dispute—brought by the Beijing Chaoyang District Friends of Nature Environmental Research Institute (hereinafter referred to as “Friends of Nature”), supported by the Nanping Municipal People’s Procuratorate and the Center for Environmental and Resource Law Research and Service at China University of Political Science and Law—as well as by the Fujian Green Home Environmental Friendly Center (hereinafter referred to as “Fujian Green Home”), against the defendants Xie, Ni, Zheng, and Li, and the third parties—the Yanping Branch of the Nanping Municipal Bureau of Land and Resources and the Forestry Bureau of Yanping District, Nanping City—is the first nationwide environmental public interest civil lawsuit filed by a social organization since the implementation of the newly revised Environmental Protection Law. It is also the first environmental public interest civil lawsuit accepted and filed by a people’s court nationwide following the implementation of the newly revised Environmental Protection Law.
There is no doubt that its trial carries significant exemplary value.
This originated from 1 Moon 1 In the environmental public interest civil lawsuit filed today, the plaintiffs Friends of Nature and Fujian Green Home, relying on the revised Environmental Protection Law that took effect on the same day, requested the Nanping Intermediate People’s Court to order the defendants Xie, Ni, Zheng, and Li to restore the vegetation on the forested land within three months and compensate for the loss of ecological service functions. 134 10,000 yuan; if the restoration of vegetation on the forested land cannot be completed within three months, compensation shall be paid for ecological and environmental restoration costs. 110.19 Ten thousand yuan will be used to restore forest vegetation, organized by the Yanping Branch of the Nanping Municipal Bureau of Natural Resources and Land Use and the Forestry Bureau of Yanping District, Nanping City.
Currently, the Nanping Intermediate People’s Court, after a first-instance trial and thorough investigation, has found that the defendants Xie, Ni, Zheng, and Li indeed caused severe damage to the original vegetation of forest land by engaging in illegal mining activities. Despite multiple orders from the land and resources authorities demanding that mining operations be immediately halted, the defendants Xie, Ni, and Zheng continued their work, once again causing further destruction of the forest land’s vegetation. The defendants Xie, Ni, Zheng, and Li collectively occupied forest land. 28.33 mu.
To this end, the Nanping Intermediate People's Court ruled that the defendants Xie, Ni, Zheng, and Li had jointly committed infringement and ordered them to... 5 Within the next month, remove mine shacks, machinery, stone materials, and waste rock, and restore the damaged areas. 28.33 The function of the forest land is to replant trees on this land and provide three years of tending and management. If the forest vegetation cannot be restored within the specified timeframe, both parties shall jointly compensate for the costs of ecological restoration. 110.19 Ten thousand yuan, jointly compensating for the loss of service functions during the period from when the ecological environment was damaged until it was restored to its original state. 127 10,000 yuan, to be used for in-situ ecological restoration or off-site public ecological restoration.
The significance of this case for the future adjudication of environmental public interest civil litigation lies in the following aspects: First, the requirements for entities initiating public interest lawsuits are relatively standardized; second, it is the first time that a judgment has ordered compensation for losses to the ecological environment’s service functions; third, the system of expert assistants appearing in court has been introduced; and fourth, it has been clarified that administrative enforcement agencies do not bear civil liability in public interest litigation.
As Lin Dongbo pointed out, ecological and environmental tort cases often involve highly specialized issues in the field of environmental science. In this case, the system of expert assistants was introduced: at the plaintiff’s request, expert assistants were notified to appear in court and provide their opinions on appraisal reports and technical matters. After cross-examination, their testimony was admitted as a basis for establishing the facts.
“The results of this assessment played a significant supporting role in the court’s final decision on the amount of compensation to be awarded to the defendant,” said Jing Qianping, Director of the Ecological and Environmental Assessment Center at Zhonglin Appraisal Company. This marks the first case in China’s asset appraisal industry involving environmental public interest litigation following the implementation of the new Environmental Protection Law.
Provide strong technical support for environmental public interest litigation.
Song Li told reporters that in this case, Beijing Zhonglin Asset Appraisal Co., Ltd. was commissioned by Friends of Nature. Based on on-site investigations and relevant data, the company was tasked with determining whether the quarry in Nanping, Fujian, had illegally occupied forest land (with a total area of...). 28.33 A preliminary estimate has been made of the costs required for the ecological restoration project (excluding litigation costs) and the value of ecological damage.
“The results of the asset valuation show that both the damage caused by this illegal act and the cost required for restoration are in the millions of yuan.” Recalling the scene he witnessed during the assessment, Jing Qianping said, “The defendant managed to destroy an entire forest area that had taken decades to grow—in just a few short years. If we’re to fully restore the forest to its pre-damage condition, it’ll take at least another decade or so. The perpetrator must bear the costs of restoration as well as the ecological losses incurred during that period.” Indeed, thanks to its strong professional expertise, Zhonglin Company played a pivotal role in the forest valuation for this case, providing robust technical support for the punishment of environmental crimes.
Song Li told reporters: “As an independent third-party assessment agency, our company provided professional and comprehensive technical support for this case, quantifying the scope and extent of the damage caused by ecological and environmental destruction, as well as its monetary value. This has effectively safeguarded the legitimate rights and interests of local residents and dealt a strong blow to the perpetrators. We’re truly encouraged by the outcome of this trial and deeply feel the powerful support that professional assessment expertise can offer in environmental public interest litigation.” Using technology to bolster environmental public interest litigation and leveraging data to quantify the value of ecological damage—this undoubtedly represents the robust support that the asset valuation industry can provide to environmental public interest litigation.
Using expertise to promote the implementation of the new environmental protection law.
Ge Feng, the initiator of this public interest lawsuit and head of the environmental law program at the grassroots environmental organization Friends of Nature, feels even more deeply about this case: “For the first time, the new Environmental Protection Law includes acts that damage ecosystems within the scope of environmental public interest litigation, truly opening a door for social organizations to advance ecological conservation efforts. Last year...” 12 By the end of the month, we had prepared all the litigation materials and were just waiting for the new Environmental Protection Law to take effect before filing our case with the court—our hope was precisely to use specific cases to help drive the implementation of the new law. Today, the verdict has brought Ge Feng a great sense of relief. “What we value most are the provisions in the special chapter on information disclosure and public participation. Environmental public interest litigation calls for greater involvement from civil society; we hope that more social forces will pay attention to the work done by grassroots environmental organizations in promoting environmental protection in accordance with the law. We also encourage local grassroots environmental groups to leverage existing legal provisions to engage in environmental protection efforts—for instance, by using mechanisms such as information disclosure, public participation in environmental impact assessments, and public interest litigation—to advance the cause of environmental protection.” In fact, environmental public interest litigation is indeed a crucial tool for safeguarding the environment.
In many environmental public interest litigation cases, if only the economic value is assessed while ignoring the ecological value, it becomes impossible to objectively and accurately reflect the true state of natural resources. ( Forest ) If the contribution of economic and social development is underestimated while its destructive ecological value is overlooked, it could mislead society, governments, and businesses into making decisions that are detrimental to ecological conservation and fail to effectively curb activities that harm the environment.
On the other hand, if we take ecological values into account and conduct ecological value assessments, we can effectively address these issues.