Lujiazui Sues Su Steel Group for 10 Billion Yuan, Alleging Pollution in Four Plots
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On November 8, the news that Shanghai Lujiazui Financial and Trade Zone Development Co., Ltd. (referred to as 'Lujiazui Company') claimed it purchased 14 contaminated plots in Suzhou and is seeking 10.044 billion yuan in compensation sparked widespread discussion.
Yang Yang, a partner at Sichuan Discovery Law Firm, told Top News in an interview that project staff and construction workers who suffer health damage due to long-term work on polluted land can claim compensation from their employers based on labor relations or from responsible parties based on tort liability.
Lujiazui Company stated in an announcement on November 4 that in 2016, its designated subsidiaries, Jiawan Company and Jiaer Company (through a trust plan), jointly acquired a 95% stake in Green Shore Company, which was listed for sale by Su Steel Group at the Shanghai United Assets and Equity Exchange. The main assets of Green Shore Company are 17 land use rights located north of Su Tong Road and east of Su Gang Road in Suzhou High-tech Zone.
The announcement noted that since 2022, environmental investigations by Lujiazui Company and other parties confirmed that 14 of the plots owned by Green Shore Company are contaminated, with the pollution area and severity far exceeding what was disclosed by Su Steel Group during the sale. Additionally, professional investigations revealed that during the land use adjustment and transfer process, the defendants engaged in a series of illegal activities, falsifications, and failures to perform duties, collectively leading to the plaintiff acquiring severely contaminated land.
Lujiazui Company and its subsidiaries have filed a lawsuit against Jiangsu Su Steel Group Co., Ltd. (referred to as 'Su Steel Group'), Suzhou Environmental Science Research Institute, Suzhou Sucheng Environmental Technology Co., Ltd., Suzhou National High-tech Industrial Development Zone Management Committee, and Suzhou Natural Resources and Planning Bureau over soil pollution issues. They recently received a written notice of case acceptance from the Jiangsu High People's Court.
Lujiazui Company has requested the court to order Su Steel Group to pay approximately 10.044 billion yuan in compensation (with the possibility of increasing the claim or filing additional lawsuits if further evidence reveals higher damages).
The Suzhou Green Shore project officially began development in May 2017. According to media reports, Suzhou Green Shore Real Estate Development Co., Ltd. has suspended related development, construction, and sales activities. Before the suspension, schools, kindergartens, commercial complexes, fitness parks, and some residential buildings in the project had already been completed and met delivery standards.
This means that if Lujiazui Company's assessment is accurate, a significant number of project staff and construction workers have been working on polluted land for an extended period.
Lawyer Yang Yang stated that if construction workers suffer health damage, they can claim compensation in accordance with the law.
'Should the migrant workers at the construction site also be a focus of attention?' 'The buildings are already completed, meaning many workers may have been affected if there is indeed significant pollution.' The health of construction workers has drawn public concern in this case.
Top News attempted to contact Lujiazui Company's board secretary office and Su Steel Group's public phone line on the evening of November 8 for comments but received no response.
Top News interviewed Yang Yang, a partner at Sichuan Discovery Law Firm, for further insights:
Top News: Lujiazui Company alleges that the defendants engaged in illegal activities, falsifications, and failures to perform duties during the land use adjustment and transfer process. Under what circumstances is a soil pollution investigation required?
Yang Yang: According to China's current laws, soil pollution surveys are mandatory when land use is changed to residential or other specific purposes. If land is listed as potentially contaminated, the land user must also conduct an environmental survey. Land use regulation changes are administrative procedures, and if public officials violate laws or falsify information, they may face criminal charges. Case details are not yet disclosed, and the extent of pollution remains unclear, requiring case-by-case analysis. If environmental assessment or monitoring personnel intentionally provide false documents, they may be charged with "providing false certification."
Top News: During construction, project staff and workers have been working on-site for extended periods. Should their health be assessed in this case?
Yang Yang: Whether construction workers' health has been affected by soil pollution is unrelated to this case, as they involve different legal relationships. Health assessments for workers are unnecessary during the case proceedings.
Top News: If the project or workers' health has been impacted by pollution, should they receive compensation? How should compensation standards be defined?
Yang Yang: If project staff or construction workers suffer health damage due to prolonged exposure to contaminated land, they can claim compensation from employers under labor laws or from liable parties under tort law.
On one hand, Article 52 of the Labor Law requires employers to provide safe and hygienic working conditions. If workers' health is harmed due to land pollution, it may qualify as a work-related injury, entitling them to compensation. Even non-employee laborers can claim damages from the contracting party.
On the other hand, Articles 1165 and 1168 of the Civil Code stipulate that if developers, contractors, or third-party agencies fail to ensure safe working conditions or negligently assess soil pollution, they infringe on workers' health rights, constituting joint torts. Workers can thus seek damages from these parties.
The above analysis is based on preliminary public information and does not represent final conclusions, as case details remain undisclosed. Each case requires individual assessment.