Judgment No. 09/2019/DS-ST dated march 15, 2019 on dispute over reimbursement of training costs

THE PEOPLE'S COURT OF DA NANG CITY

JUDGMENT NO. 09/2019/DS-ST DATED MARCH 15, 2019 ON DISPUTE OVER REIMBURSEMENT OF TRAINING COSTS

On March 15, 2019, at the headquarters of the People's Court of Da Nang City, a first instance trial is conducted to hear case No.  20/2018/TLST-DS dated March 21, 2018 on claim for reimbursement of training costs, under the Decision to Bring the Case to Trial No.  12/2019/QDXXST-DS of January 30, 2019, among the involved parties:

- Plaintiff:  Center for development of high quality human resources; address:  Street T, District H, Da Nang City, Vietnam.

Legal representative authorized by plaintiff:  Ms. Nguyen Pham Minh H, Ms. Nguyen Pham Thuy T; with same address:  Street T, District H, City D, Vietnam (with Letter of Authorization dated October 31, 2018).

- Respondents:

1. Mr. Phan Thanh K; address (provided by the plaintiff): Australia; address (provided by the respondent): Australia; Email: .com.

2. Ms. Phan Thi Thanh H; address: Street P, Ward S, City H, Quang Nam Province, Vietnam.

3. Mr. Phan Van T; address: Street D, Ward P, District S, Da Nang City, Vietnam.

FACTUAL AND PROCEDURAL BACKGROUND

Representation of the plaintiff - Center for development of high quality human resources (hereinafter referred to as Center):

- Mr. Phan Thanh K participated in the Scheme on developing high-quality human resources (hereinafter referred to as the Scheme) and was appointed by the People's Committee of City D (hereinafter referred to as the City) to study for a Bachelor of Cell Biotechnology at the La Trobe University, Melbourne, Victoria, Australia; in 3 years; from February 2009; with a total training cost of VND 1,781,772,179 covered by the City.

- After graduating in December 2011, with the high distinction grade, Mr. K was approved by the City to extend the time to get a job assigned by the City until February 14, 2017 to continue his postgraduate study at La Trobe University, Australia at his own expenses, in biotech and biochemical major; in specific: 1-year honorary bachelor program and 4-year doctoral program.

- Upon completion of the foregoing programs and the request to return Vietnam and receive the job assigned, on March 10, 2017, Mr. Phan Thanh K had an application to leave the Scheme to continue approving his expertise. At the meeting on March 17, 2017, the Center requested the family to advise Mr. K to return Vietnam and receive the job assigned by the City, however, Mrs. Phan Thi Thanh H (Mr. K’s mother) still proposed the City to allow Mr. K to leave the Scheme and agreed to reimburse the training costs of VND 1,781,772,179, and Mr. Phan Thanh K, Mr. Phan Van T and Mrs. Phan Thi Thanh H will be jointly liable for this amount.

- Mr. K's application for leaving the Scheme without fulfilling the commitment to work for the City is a breach of the Contract No. 10/2008/HDDA-NN-LQD dated May 14, 2008 and contract addenda. So, the City issued the decision to let him leave from the Scheme and requests him to reimburse the training costs in accordance with current regulations.  In specific, Mr. J, together with Mr. Phan Van T and Mrs. Phan Thi Thanh H, are jointly liable for the reimbursement of VND 1,781,772,179 before July 20, 2017.

- Due to financial difficulties, Mr. K, Mr. T and Mrs. H have only repaid the total amount of VND 731,773,000 (until February 25, 2019).

- Therefore, in order to ensure that the Scheme is strictly performed and ensures the lawful rights and interests of the State, the Center requires Mr. K and Mr. T and Mrs. H to continue to jointly reimburse the remaining training costs to the Center with the amount of VND 1,049,999,179 and from July 20, 2017, also bear the maximum interest rate applicable to demand deposits quoted by the State Bank of Vietnam (1% pa. - per annum) imposed on the delayed reimbursement amount.

- At the trial, the authorized representative of the plaintiff determines that the interest remaining unpaid until March 15, 2019 is VND 22,213,895 and requests the respondents to pay off the outstanding training costs of VND 1,049,999,179 and the said interest.

Mutual representation of Mr. Phan Thanh K, Mrs. Phan Thi Thanh H and Mr. Phan Van T:

- They agree with all plaintiff's presentation about the fact that Mr. Phan Thanh K participated in the Scheme and signed such a contract, as well as contract addenda to receive a financial support for training costs to study abroad. But after graduating, he did not take the job in the City as committed.  The respondents acknowledge the liability for training costs of VND 1,781,772,179 and the interest accrued as required by the Center; they have paid VND 731,773,000; and are still liable for VND 1,049,999,179 and the interest accrued from July 20, 2017 to the first instance trial date of VND 22,213,895, according to the maximum interest rate applicable to demand deposits quoted by the State Bank of Vietnam (1% pa.) imposed on the delayed reimbursement amount.

- But due to their family's financial hardship, they propose to make monthly installment payments of VND 50,000,000 until the debt is paid off.

At the court hearing, the procurator expresses their opinions on the observance of the procedural law of the judge, trial panel, court clerks and participants of legal proceedings in the course of settling the case since it was accepted until prior to the deliberation time; and request the Trial Panel to accept the request for reimbursement of training costs of the Center against Mr. Phan Thanh K, Mr. Phan Van T and Mrs. Phan Thi Thanh H.

Based on documents and evidences that have been reviewed at court hearing and the results of litigation at court hearing, after the Procuracy representative makes their opinions, the Trial Panel judges as follows:

JUDGEMENT OF THE COURT

 [1] Respondents: Mr. Phan Thanh K is a Vietnamese citizen; living in Australia; Mrs. Phan Thi Thanh H, living at Street P, Ward S, City H, Quang Nam Province and Mr. Phan Van T, living at Street D, Ward P, District S, Da Nang City. According to the contract No. 10/2008/HDDA-NN-LQD dated May 14, 2008 (and 5 attached contract addenda) on the implementation of the project of supporting higher education training through domestic and foreign educational institutions with the state budget for high school students in Da Nang City, signed at the No. 1 Notary Office of Da Nang city between the City and Mr. Phan Thanh K and Mr. Phan Van T and Mrs. Phan Thi Thanh H, the two parties agreed that the dispute settlement court is the court where the Center is headquartered so that the dispute on reimbursement of training costs falls under the jurisdiction of the People's Court of Da Nang as prescribed in Article 37, Article 39, Article 464 and Article 470 of the Civil Procedure Code in Viet Nam.

 [2] Mr. Phan Thanh K and Mrs. Phan Thi Thanh H applied for trial in absentia, so the Trial Panel conducts the trial in the absence of Mr. K and Mrs. H according to Article 227 of the Civil Procedure Code.

 [3] The Trial Panel finds that Mr. Phan Thanh K voluntarily registered to participate in the project of supporting higher education at domestic and overseas educational institutions with the state budget for students of high schools in Da Nang city and the President of the People's Committee of Da Nang City decided to send to attend La Trobe University, Melbourne, Victoria, Australia. Based on the decision to send on course of the President of the People's Committee of Da Nang City, the City has signed a Contract with Mr. Phan Thanh K and Mr. Phan Van T and Mrs. Phan Thi Thanh H (being the natural parents of Mr. Q) in order for the City to cover 100% of training costs for Mr. K to go to school and Mr. K is obliged to, after graduating from the university, come back to the City to receive work assignment and serve for Da Nang city for at least seven year; in case of breach of the contract, he is obliged to, together with the family, be responsible for compensation five times the total training costs.

 [4] Considering the lawsuit of the Center claiming reimbursement of training costs against Mr. Phan Thanh K and Mr. Phan Van T and Mrs. Phan Thi Thanh H, after graduating and it was time to return to receive the job assignment, Mr. K did not come back to receive the decision to fulfill his duty to work for the City; he applied for leaving the Scheme, as well as accept reimbursement of training costs to the City.  Therefore, on April 20, 2017, the President of City People's Committee issued Decision No. 2168/QD-UBND on agreeing to let Phan Thanh K leave the Scheme and repay the training costs to the City.  Mr. K’s failure to receive the job assignment of Da Nang City is a breach of the contract, pursuant to Article 247 of the Civil Code 2015.Total state budget funding that the Center used for his study at La Trobe was VND 1,781,772,179; during the case settlement, the respondents accept their liability for reimbursement of the training costs and the interest accrued according to the maximum interest rate applicable to demand deposits quoted by the State Bank of Vietnam (1% pa.) from July 20, 2017 until the debt is paid off. Up to February 26, 2019, Mr. K, Mrs. H and Mr. T have paid VND 731,773,000 to the Center; the interest up to March 15, 2019 of VND 22,213,895 remains unpaid, so their obligation to pay the said amount in full to the Center is accordant with Articles 280 and 288 of the Civil Code; Decree No. 143/2013/ND-CP in Viet Nam dated October 24, 2013 of the Government on reimbursement of scholarships and training costs; Article 4 of Contract No. 10/2008/HDDA-NN-LQD dated May 14, 2008 on implementation of the project of supporting higher education training through domestic and foreign educational institutions with the state budget for high school students in Da Nang City, signed by the City and Mr. K, Mrs. H and Mr. T.

 [5] The request for payment in installments by the respondents is not approved by the Center and has no legal basis, so it is not accepted.

 [6] Regarding court fees:  Mr. Phan Thanh K, Mr. Phan Van T and Mrs. Phan Thi Thanh H have to pay the first instance civil court fee as prescribed in Article 147 of the Civil Procedure Code.

Therefore,

DISPOSITION

Pursuant to Article 37, Article 39, Article 464 and Article 470 of the Civil Procedure Code; Article 280, Article 288, Article 468 and Article 688 of the Civil Code 2015 in Viet Nam; Decree No. 143/2013/ND-CP dated October 24, 2013 of the Government on reimbursement of scholarship and training costs; Resolution No. 326/2016/UBTVQH14 in Viet Nam dated December 30, 2016 of the Standing Committee of the National Assembly on court fees and charges, and collection, remission, payment, management and use thereof.

Accept the Center’s lawsuit claiming reimbursement of training costs against Mr. Phan Thanh K, Mr. Phan Van T and Mrs. Phan Thi Thanh H.

Declare:

1. Force Mr. Phan Thanh K, Mr. Phan Van T and Mrs. Phan Thi Thanh H to jointly pay to the Center a total of VND 1,072,213,074 (One billion, one hundred and seventy two million, two hundred and thirteen thousand, and seventy four dong), in which the training costs are VND 1,049,999,179 and interest is VND 22,213,895.

From the date on which the judgment takes legal effect (for the case where the judgment enforcing agency is entitled to issue a decision on judgment enforcement) or from the date the judgment enforcement request is submitted by the judgment creditor (for the amounts to be paid to the judgment creditor), until the judgment is fully enforced, the judgment debtor must pay monthly interest on the delayed payment with the interest rate agreed by the parties but not exceeding the interest rate prescribed in Clause 1, Article 468 of the Civil Code; If no agreement is reached, the provisions of Clause 2, Article 468 of the Civil Code shall prevail.

2. With reference to court fees: Mr. Phan Thanh K, Mr. Phan Van T and Mrs. Phan Thi Thanh H have to pay the first instance civil court fee of VND 44,166,392 (Forty four million, one hundred and sixty six thousand, three hundred and ninety two dong).

3. The Center and Mr. Phan Van T (appearing in court) have to right to appeal the judgment within 15 days from the date of pronouncement; Mrs. Phan Thi Thanh H (not appearing in court) has the right to appeal the judgment within 15 days from the date on which the judgment is duly served or posted as per the law; Mr. Phan Thanh K (not appearing in court) has the right to appeal within 1 month from the date on which the judgment is duly served or posted as per the law.

In case the judgment or court decision is enforced as per regulations in Article 2 of the Law on enforcements of civil judgments in Viet Nam 6, the judgment creditor and judgment debtor are lawfully allowed to reach an agreement on judgment enforcement, request judgment enforcement, be subject to voluntary execution or coercive judgment enforcement in compliance with regulations in Article 7, 9 and 30 of the Law on enforcement of civil judgments. The effective period of judgment enforcement shall comply within provisions in Article 30 of the Law on enforcement of civil judgments.