Jingzhou Court: Dispute over leasing resolved through mediation to prevent conflict

Huaihua Daily Media News Recently, the Jiangzhou Court’s Aoshang Court successfully mediated a rental contract dispute, effectively resolving the conflicts and achieving substantive resolution of the disputes between the parties involved.

On March 14, 2024, the defendant, a certain construction labor service company, signed a “Construction Equipment Rental Contract” with the plaintiff, a certain construction materials company, agreeing to rent steel pipes, fasteners, props, sleeves, and other construction equipment for project construction. On April 3 of the same year, the defendant signed another “Scaffolding Rental Contract” with the plaintiff, reaffirming the rental of similar equipment for the same project.

During the performance of the contract, the plaintiff delivered all the rental equipment to the project site as agreed, and the defendant confirmed receipt. By October 19, 2025, the defendant had only paid a rental fee of 65,000 yuan. After reconciling accounts, it was confirmed that the defendant still owed a total of 786,206.8 yuan in rental fees, compensation for lost equipment, and reimbursed transportation costs. After multiple unsuccessful attempts to collect, the plaintiff brought the case to court.

After accepting the case, the presiding judge comprehensively reviewed the facts and evidence of the case and assessed that there was considerable room for mediation. To minimize the litigation costs for the parties and shorten the dispute resolution period, the judge promptly organized a pre-trial mediation to facilitate a substantive resolution of the conflict.

“I acknowledge the amount of rent, but the compensation for the loss of equipment such as steel pipes claimed by the plaintiff is too high. I agree to repurchase a set of lost equipment for compensation,” said the defendant. The plaintiff stated that the specifications of the lost equipment were unique, and repurchasing would not only take a long time but also incur additional transportation costs, insisting that the defendant compensate according to the standards stipulated in the contract.

After patiently listening to both parties’ statements, the presiding judge explained the relevant legal provisions of the rental contract, clearly informing the defendant of the legal responsibilities for defaulting on the contract payments and the adverse consequences of overdue performance, such as credit penalties and compulsory execution, while guiding the plaintiff to consider the actual operational difficulties faced by the defendant and make reasonable concessions.

Regarding the focal points of contention between both parties, the presiding judge proposed a mediation plan of “cash compensation + installment payment of rent,” calculating the depreciation of the lost equipment, with the overdue rent and compensation to be paid by the defendant in two installments. This plan alleviated the financial pressure on the defendant and ensured that the plaintiff’s legal rights could be realized in a timely manner. With the presiding judge’s patient mediation, both parties reached a mediation agreement. The defendant is required to pay the plaintiff a total of 500,000 yuan in rent and equipment compensation, to be settled by September 1, 2026.

(Chu Changzhi)

【Source: Huaihua News Network】