Precedent No. 05/2016/AL in Vietnam

Precedent No. 05/2016/AL

Approved by the Council of Justices of the Supreme People's Court of Vietnam on April 6, 2016, and published according to Decision No. 220/QD-CA dated April 6, 2016, by the Chief Justice of the Supreme People's Court of Vietnam.

Source of Precedent:

Cassation Decision No. 39/2014/DS-GDT dated October 9, 2014, by the Council of Justices of the Supreme People's Court regarding the "Inheritance Dispute" case in Ho Chi Minh City between the plaintiffs Mrs. Nguyen Thi Thuong, Mrs. Nguyen Thi Xuan and the defendants Mr. Nguyen Chi Trai (Cesar Trai Nguyen), Ms. Nguyen Thi Thuy Phuong, Mrs. Nguyen Thi Bich Dao; people with related rights and obligations including Nguyen Thi Xe, Nguyen Chi Dat (Danforth Chi Nguyen), Nguyen Thuan Ly, Nguyen Thi Trinh, Nguyen Chi Duc, Nguyen Thi Thuy Loan, Pham Thi Lien, Pham Thi Vui, Tran Duc Thuan, Tran Thanh Khang.

Overview of Precedent:

In an inheritance dispute case, where there is a party entitled to a portion of the inheritance and has contributed to the management and preservation of the inheritance but does not agree to the division of the inheritance (claiming that the statute of limitations on inheritance litigation has expired), and does not have specific requests to recognize their contributions to the management and preservation of the inheritance; if the Court decides to divide the inheritance among the heirs, it must take into account the contributions of this party since the request to not divide the inheritance is greater than the request to consider the contributions.

Legal Provisions Related to Precedent:

Clause 1 Article 5 and Article 218 of the Civil Procedure Code 2004;

Keywords of Precedent:

"Litigation Request"; "Counterclaim Request"; "Contributions to Management and Preservation of Inheritance".

CASE CONTENT

In the petition dated July 18, 2008, and during the process of resolving the case, Mrs. Nguyen Thi Thuong, Mrs. Nguyen Thi Xuan stated: Their parents were Mr. Nguyen Van Hung (deceased in 1978) and Mrs. Le Thi Ngu (deceased in 1992), and they had 06 children, namely Mrs. Nguyen Thi Xe, Mr. Nguyen Chi Trai, Mrs. Nguyen Thi Xuan, Mrs. Nguyen Thi Thuong, Mrs. Nguyen Thi Trinh, and Mr. Nguyen Chi Trai. Mr. Trai had a wife, Mrs. Ong Thi Manh, and 05 children: Mr. Nguyen Thuan Ly, Mr. Nguyen Thuan Huy, Ms. Nguyen Thi Quoi Duong, Mr. Nguyen Chi Dat (born in 1966) and Mr. Nguyen Chi Dat (born in 1968). In Decision No. 413/2008 dated March 31, 2008, the People's Court of Ho Chi Minh City declared Mr. Trai, Mrs. Manh, Mr. Thuan Huy, Ms. Quoi Duong, Mr. Nguyen Chi Dat (born in 1968) as deceased.

The house at 263 Tran Binh Trong Street, Ward 4, District 5, Ho Chi Minh City was acquired by Mr. Hung, Mrs. Ngu from Mr. Dao Thanh Phung in 1953, and the house was built in its current state by 1966. The house and land have not been issued a certificate of house ownership or land use rights but were declared for registration only in 1999. Neither Mr. Hung nor Mrs. Ngu left a will, and the house is currently managed by Ms. Nguyen Thi Thuy Phuong, the daughter of Mr. Nguyen Chi Trai. During the management, Ms. Phuong rented part of the house to Mrs. Nguyen Thi Bich Dao, who used it as a bakery. Ms. Phuong did some minor repairs to the house. Mr. Trai and his wife did not contribute to the construction or repairs as Mr. Trai was in reeducation, and Mrs. Tu, Mr. Trai's wife, was unemployed, with young children and no income. The plaintiffs are willing to reimburse Ms. Phuong for any proven repair costs, should she have evidence and request it.

The plaintiffs requested to divide the inheritance of this house according to the law and wished to receive the house, compensating other heirs in cash. Ms. Phuong is not an heir and must return the house, with no agreement to assist her moving elsewhere.

Defendant Ms. Nguyen Thi Thuy Phuong stated: She agreed on the family relationship details. Her father is Mr. Nguyen Chi Trai, her mother is Mrs. Nguyen Thi Tu, and they had 03 children, including herself, Mr. Nguyen Chi Duc, and Ms. Nguyen Thi Thuy Loan (Mr. Duc, Ms. Loan currently live in Canada). The house at 263 Tran Binh Trong Street was bought by her grandparents in 1953, originally a tile house with wooden walls. In 1955, her parents married and lived in this house. Her father emigrated to the USA in 1978, and her mother died in 1980. She has lived in this house from childhood until now and has repaired it many times, such as installing aluminum doors, building a mezzanine wall, tiling the terrace, and building the back wall. She claims part of her father’s inheritance as he signed a document gifting her his share of the inheritance in Vietnam in 2006. She disagreed with the plaintiffs' request, arguing the statute of limitations for inheritance has expired, and she, along with her 02 children, currently live in this house. She rented part of the house to Mrs. Nguyen Thi Bich Dao, and they will resolve the rental issue themselves.

Defendant Mr. Nguyen Chi Trai stated: In the document dated October 14, 2009, Mr. Trai requested to void the April 25, 2006, document gifting his inheritance to Ms. Phuong, and by the same document, he authorized Mrs. Thuong, Mrs. Xuan to represent him at Court, and when the Court settles the inheritance, his portion should be given to his son, Mr. Nguyen Chi Duc, currently residing in Canada.

After the first-instance trial, on April 22, 2010, Mr. Trai submitted a statement disagreeing with dividing the inheritance of 263 Tran Binh Trong house and asking for Ms. Phuong to continue managing it on behalf of his contributions. However, on July 14, 2010, he provided another document gifting his inheritance to his son, Mr. Nguyen Chi Duc. On March 11, 2011, he submitted a statement agreeing with the first-instance judgment and did not appeal.

Interested parties:

- Mrs. Nguyen Thi Trinh (daughter of Mr. Hung and Mrs. Ngu) agreed with the plaintiffs on the family relationship and the origin of the property. In 1966, the house was repaired with contributions from the children, including her, but she did not request her share of the contributions. She disputes Ms. Phuong’s claims that her parents and herself contributed to the repairs. She requested her inheritance share be managed by Mrs. Xuan, Mrs. Thuong, and demanded Mrs. Dao, Ms. Phuong return the house.

- Mr. Nguyen Chi Dat (born in 1966), Mr. Nguyen Thuan Ly stated: Their parents, Mr. Nguyen Chi Trai, Mrs. Ong Thi Manh, and their 03 siblings died at sea during a 1982 escape. They agreed with the plaintiffs on inheritance division and requested their inheritance of Mr. Hung, Mrs. Ngu's property be managed by Mrs. Thuong, Mrs. Xuan.

- Mrs. Nguyen Thi Xe (daughter of Mr. Hung, Mrs. Ngu) agreed with the plaintiffs on family relations and requested her inheritance be given to her two children, Pham Thi Vui, and Pham Thi Lien.

- Statements from Ms. Nguyen Thi Thuy Loan and Mr. Nguyen Chi Duc through a power of attorney dated May 21, 2007 (consular legalized) authorized Ms. Phuong to manage all matters related to dispute or division of property and land in Vietnam (this power of attorney was presented by Ms. Phuong in her request dated March 25, 2011, after the first-instance trial).

Ms. Loan submitted a document (with power of attorney) requesting her absence in the trial on August 13, 2009. She claimed their parents contributed financially to the property, while other relatives did not. After 1975, everyone left except for Ms. Phuong, who remained with their grandparents, and requested the Court allow Ms. Phuong to keep the disputed house and land.

In the first-instance civil judgment No. 3363/2009/DSST dated November 18, 2009, the People's Court of Ho Chi Minh City ruled:

- The house and land at 263 Tran Binh Trong Street are determined to be the inheritance of Mr. Nguyen Van Hung and Mrs. Le Thi Ngu; each inheritance portion is 10,655,687,000 VND: 6 = 1,775,947,800 VND.

- Ms. Phuong and Mrs. Dao must return the contested house and land to Mrs. Thuong, Mrs. Xuan, who will then compensate the other heirs in cash.

- Acknowledged Mr. Nguyen Chi Trai’s gift of his inheritance to his son, Mr. Nguyen Chi Duc.

On November 30, 2009, Ms. Nguyen Thi Thuy Phuong appealed, arguing that Mr. Hung and Mrs. Ngu had been deceased for more than ten years, thus the statute of limitations for filing an inheritance claim has expired.

On March 15, 2011, Ms. Phuong filed an additional appeal stating:

- Her father, Mr. Trai, opposed the division and agreed for her to manage the house. The co-heirs have no written agreement that the disputed house is undivided common property. Her parents and siblings, including herself, have lived there for over 50 years, maintained the house, so forcing her family to leave is unreasonable.

In the appellate civil judgment No. 116/2011/DS-PT dated May 10, 2011, the appellate court of the Supreme People's Court in Ho Chi Minh City upheld the first-instance judgment.

On June 16, 2011, Ms. Nguyen Thi Thuy Phuong filed for cassation review of the above appellate judgment.

In Decision No. 158/2014/KN-DS dated May 6, 2014, the Chief Justice of the Supreme People's Court appealed the above appellate judgment; requesting the Council of Justices of the Supreme People's Court to review and cancel both the appellate civil judgment and the first-instance civil judgment No. 3363/2009/DSST dated November 18, 2009, of the People's Court of Ho Chi Minh City; and remand the case to the People's Court of Ho Chi Minh City for re-trial in accordance with the law.

At the cassation hearing, the representative of the Supreme People's Procuracy agreed with the appeal by the Chief Justice of the Supreme People's Court.

The Council of Justices of the Supreme People's Court's opinion:

Mr. Nguyen Van Hung (deceased in 1978) and Mrs. Le Thi Ngu (deceased in 1992) had 06 children, namely Mrs. Nguyen Thi Xe, Mr. Nguyen Chi Trai, Mrs. Nguyen Thi Xuan, Mrs. Nguyen Thi Thuong, Mrs. Nguyen Thi Trinh, and Mr. Nguyen Chi Trai. Mr. Nguyen Chi Trai and Mrs. Ong Thi Manh had 05 children: Mr. Nguyen Thuan Ly, Mr. Nguyen Thuan Huy, Ms. Nguyen Thi Quoi Duong, Mr. Nguyen Chi Dat (born in 1966), and Mr. Nguyen Chi Dat (born in 1968). Mr. Trai, Mrs. Manh, Mr. Thuan Huy, Ms. Quoi Duong, and Mr. Nguyen Chi Dat (born in 1968) were declared deceased on March 31, 2008, per Decision No. 413/2008 dated March 31, 2008, by the People's Court of Ho Chi Minh City.

Mr. Hung and Mrs. Ngu passed away intestate. All the children of the couple and Ms. Phuong (Mr. Trai's daughter) acknowledge that the house at 263 Tran Binh Trong Street, Ward 4, District 5, Ho Chi Minh City was acquired by Mr. Hung and Mrs. Ngu from Mr. Dao Thanh Phung in 1953 and is currently managed by Ms. Phuong.

In 2008, Mrs. Xuan, Mrs. Thuong filed a lawsuit requesting the division of Mr. Hung and Mrs. Ngu's inheritance.

All parties confirmed that Mr. Trai settled in the USA before July 1, 1991. The first-instance and appellate courts relied on Resolution 1037/2006/NQ-UBTVQH11 dated July 27, 2006, by the Standing Committee of the National Assembly to conclude that the statute of limitations for inheritance claims regarding Mr. Hung’s estate is still valid. For Mrs. Ngu’s estate, the statute of limitations for inheritance claims has expired, but Mr. Trai and the co-heirs of both parents all recognized Mrs. Ngu’s estate as undivided common property and agreed to divide it equally among the heirs. Therefore, the first-instance and appellate courts’ decision based on subsection a of point 2.4 of section 2, part I of Resolution No. 02/2004/NQ-HDTOT dated August 10, 2004, by the Council of Justices of the Supreme People's Court guiding the application of laws in civil and family cases is justifiable.

Mr. Hung died in 1978, and according to the Marriage and Family Law 1959, Mr. Trai is entitled to one-seventh of Mr. Hung's inheritance portion. Mr. Trai’s portion is communal property with his wife, Mrs. Tu. Mrs. Tu died in 1980, and her heirs include Mr. Trai and their 03 children, including Ms. Phuong. Hence, Ms. Phuong is entitled to a portion of Mrs. Tu’s inheritance, yet Mr. Trai had signed the entirety of his inheritance, including his share of Mr. Hung’s, over to Mr. Nguyen Chi Duc, which is incorrect.

Ms. Phuong was born in 1953 and agreed by all parties that she had lived in her grandparents' house from childhood to now. By 1982, she became the head of household registration at this property. Even though Mrs. Ngu was still alive but lived elsewhere, Mrs. Thuong registered the household here in 1979 but did not live there. Hence, Ms. Phuong has managed and used the disputed property from Mrs. Ngu's death till now, with the other parties having stable residences elsewhere. The first-instance and appellate courts, in dividing the inheritance, did not consider providing Ms. Phuong with accommodations and obligated her to hand over the house to the plaintiffs, which included her rightful share of Mrs. Tu’s inheritance, thus was inappropriate.

While Ms. Phuong is not an immediate heir to Mr. Hung, Mrs. Ngu, she is their descendant and has significantly contributed to managing, maintaining, and financially repairing the house. During the proceedings, Ms. Phuong did not request her contributions be reviewed because she claimed the inheritance dispute was out of the statute of limitations and did not agree to return the property. The courts should have prioritized her larger request of recognizing her benefits over her contributions, but both lower courts failed to address her contributions thoroughly.

Thus, based on Clause 3 Article 297, Clauses 1, 2 Article 299 of the Civil Procedure Code amended in 2011;

DECISION

Annul the entire appellate civil judgment No. 116/2011/DS-PT dated May 10, 2011, by the Appellate Court of the Supreme People's Court in Ho Chi Minh City and annul the entire first-instance civil judgment No. 3363/2009/DSST dated November 18, 2009, by the People’s Court of Ho Chi Minh City regarding the inheritance dispute case between plaintiffs Mrs. Nguyen Thi Thuong, Mrs. Nguyen Thi Xuan and defendants Ms. Nguyen Thi Thuy Phuong and other interested parties.

Remand the case file to the People's Court of Ho Chi Minh City for re-trial in accordance with the law.CONTENTS OF PRECEDENT

“Mr. Hung died in 1978. According to the provisions of the Marriage and Family Law of 1959, Mr. Trai was entitled to 1/7 of Mr. Hung’s inheritance. The portion of Mr. Hung's estate that Mr. Trai inherited was the common property of Mr. Trai and Mrs. Tu. Mrs. Tu died in 1980. The heirs of Mrs. Tu include Mr. Trai and their three children, among them Ms. Phuong.

Although Ms. Phuong is not an heir in the first line of succession to Mr. Hung and Mrs. Ngu, she is their granddaughter and has significantly contributed to the management and funded the repair of the house. However, during the case resolution, Ms. Phuong did not request consideration for her contributions, as she believed the case was beyond the statute of limitations for inheritance division and disagreed with returning the house and land to the heirs. Therefore, the request by Ms. Phuong to recognize her rights is greater than the request to consider her contributions, but the trial court and appellate court had not thoroughly addressed her contributions, failing to fully resolve the claimant's plea.”

TABLE OF CONTENTS:

1. Precedent No. 01/2016/AL on the case “Murder”

2. Precedent No. 02/2016/AL on the case “Dispute over property reclamation”

3. Precedent No. 03/2016/AL on the case “Divorce”

4. Precedent No. 04/2016/AL on the case “Dispute over land use right transfer contract”

5. Precedent No. 05/2016/AL on the case “Inheritance dispute”

6. Precedent No. 06/2016/AL on the case “Inheritance dispute”

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE