CASE LAW NO. 67/2023/AL On the person receiving tangible property upon division of joint property (Please note that this image is not related to the specific case being discussed).

CASE LAW NO. 67/2023/AL

On the person receiving tangible property upon division of joint property

Approved by the Judicial Council of the Supreme People’s Court on August 18^th, 2023, and published under Decision No. 364/QĐ-CA dated October 1^st, 2023, by the Chief Justice of the Supreme People’s Court.

Source of the Case Law:

The Cassation Decision No. 40/2021/DS-GĐT dated June 23^rd, 2021, of the High People’s Court in Hà Nội concerning the civil case of “Joint Property Division Dispute” between the plaintiff, Mrs. Nguyễn Thị Đ, and the defendant, Mr. Phạm Ngọc H, with the interested parties including 06 people.

Location of the Case Law’s Content:

Paragraphs 2, 3 and 4 of the “Court’s Opinion” section.

Summary of the Case Law:

– Case Background:

In the matter concerning the division of joint property, which encompasses house ownership and land use rights, a situation has arisen where one party, an elderly individual, has established, managed, and continuously used the house and land for an extended period without interruption. This party desires to retain both the house and the land while compensating the other party for their share of the property. It has been determined that the house and land cannot be physically divided.

– Legal Resolution:

In this context, the Court is required to make a determination to allocate the house and land to the elderly individual. Consequently, the elderly individual must provide compensation to the other party for their share of the property.

Relevant Legal Provisions:

Articles 209 and 219 of the Civil Code 2015.

Keywords:

“Elderly Person”; “Division of joint property”; “Compensation Value”.

CASE DETAILS

According to the complaint dated January 12^th, 2020, and during the case proceedings, the plaintiff, Mrs. Nguyễn Thị Đ (represented by Mrs. Phạm Thị Hải Y), stated the following:

The couple Mr. Phạm Ngọc T (deceased in 2014) and Mrs. Nguyễn Thị Đ had five children: Mrs. Phạm Thị Lan A, Mrs. Phạm Thị Hải Y, Mrs. Phạm Thị T1, Mrs. Phạm Thị T2, and Mr. Phạm Ngọc T3 (deceased in 2005). Mr. T3 had a son, Mr. Phạm Ngọc H.

Mrs. Đ and Mr. T acquired land Plot No. 57-2, Map Sheet No. 34, with an area of 62.68m² for exclusive use and 21.3m² for shared use, located at Group 1, Hamlet B, Town V, District X, Hà Nội, which was granted a Land Use Rights Certificate in 2005 under the names Mr. Phạm Ngọc T and Mrs. Nguyễn Thị Đ; there is a two-story house on the land.

On March 12^th, 2012, at the Notary Office M, Mr. T and Mrs. Đ executed a joint will granting their grandson, Mr. Phạm Ngọc H (son of Mr. Phạm Ngọc T3), full rights to use and transfer the aforementioned house and land.

Following Mr. T’s passing, on October 26^th, 2019, at the Notary Office Q, Mrs. Đ and Mr. H formalized an agreement to divide the inheritance. According to this agreement, Mr. Phạm Ngọc H received the entire inheritance left by Mr. T, and Mrs. Đ and Mr. H became co-owners and users of the house and land. 

Subsequently, On November 14^th, 2019, Mrs. Đ and Mr. H were issued a Certificate of Land Use Rights, House Ownership, and Other Property Associated with Land for an 84m² land (62.7m² exclusive use and 21.3m² shared use), Plot No. 57-2, Map Sheet No. 33, under the names Mrs. Đ and Mr. H.

Mrs. Đ initiated legal proceedings, seeking the division of joint property between herself and Mr. H. She proposed to retain the house and land and compensate Mr. H with VND 1,400,000,000. In the event that Mr. H did not agree, she requested the Court to resolve the matter based on the appraisal value determined by the Valuation Council, which was set at VND 40,000,000 per square meter.

The defendant, Mr. Phạm Ngọc H’s statement:

Mr. H and his family currently reside with Mrs. Đ at the house and land in question. He has acknowledged that the plot cannot be physically divided and has expressed his wish to retain the house and land. In doing so, he is prepared to compensate Mrs. Đ with VND 1,500,000,000. However, if Mrs. Đ wishes to retain the house and land, Mr. H has stipulated that she would need to compensate him at a rate of VND 75,000,000 per square meter, which amounts to a total of VND 2,325,000,000.

The interested parties, Mrs. Phạm Thị Lan A, Mrs. Phạm Thị Hải Y, Mrs. Phạm Thị T1, Mrs. Phạm Thị T2, presented:

They agreed that they no longer had any claim to the disputed property and requested that the Court resolve the matter in accordance with the law. They emphasized the importance of ensuring that Mrs. Đ has a place to live and a place to worship Mr. T.

In the First-instance Civil Judgment No. 24/2020/DS-ST dated July 22^nd, 2020, the People’s Court of Thanh Trì District, Hà Nội City, ruled as follows:

1. To accept Mrs. Nguyễn Thị Đ’s claim against Mr. Phạm Ngọc H.

– The joint property of Mrs. Nguyễn Thị Đ and Mr. Phạm Ngọc H is determined as the land use rights and other property associated with the land at Plot No. 57-2, Map Sheet No. 33, located at Group 1, Hamlet B, Town V, District X, Hà Nội, with a total value of VND 2,780,396,830. Each party owns 1/2 of the joint property, valued at VND 1,390,198,415.

– The entire house and land at Plot No. 57-2, Map Sheet No. 33, located at Group 1, Hamlet B, Town V, District X, Hà Nội (with the land status map attached to the judgment) is allocated to Mrs. Đ. She is required to compensate Mr. H with 1/2 of the joint property, valued at VND 1,390,198,415.

Additionally, the first-instance court also adjudicated court fees and the right to appeal.

After the first-instance trial, Mr. Phạm Ngọc H filed an appeal against the entire First-instance Judgment.

During the appellate process, Mr. H continued to request the right to receive the house and land and expressed his desire for Mrs. Nguyễn Thị Đ to live with his family until her death.

In the Appellate Civil Judgment No. 438/2020/DS-PT dated November 24^th, 2020, the People’s Court of Hà Nội City decided:

1. To accept the appeal of Mr. Phạm Ngọc H.
2. To amend the First-instance Civil Judgment No. 24/2020/DS-ST dated July 22^nd, 2020, of the People’s Court of Thanh Trì District, specifically as follows:
3. To accept the lawsuit request of Mrs. Nguyễn Thị Đ against Mr. Phạm Ngọc H.
4. To determine the joint property of Mrs. Nguyễn Thị Đ and Mr. Phạm Ngọc H as the land use rightsand other property associated with the land at Plot No. 57-2, Map Sheet No. 33, located at Group 1, B Hamlet, V Town, X District, Hà Nội, with an area of 84m², including 62.7m² of private use and 21.3m² of common path, with a total value of VND 2,780,396,830. Mrs. Đ and Mr. H each have the right to own and use half of the joint property, valued at VND 1,390,198,415.
5. To divide the joint property of Mrs. Nguyễn Thị Đ and Mr. Phạm Ngọc H as follows:
6. Mr. Phạm Ngọc H shall own and use the entire house and land at PlotNo. 57-2, Map Sheet No. 33, located at Group 1, B Hamlet, V Town, X District, Hà Nội (as per the Certificate of Land Use Rights, House Ownership and Other Property Associated with the Land No. CS 939809 dated November 14^th, 2019, issued by the Hà Nội Department of Natural Resources and Environment in the names of Mrs. Nguyễn Thị Đ and Mr. Phạm Ngọc H).
7. Mr. Phạm Ngọc H is obligated to pay Mrs. Nguyễn Thị Đ half of the joint property value, amounting to VND 1,390,198,415.
8. Mr. Phạm Ngọc H has the right and obligation to contact the competent state authorities to carry out the procedures for adjusting (or changing, issuing) the Certificate of Land Use Rights, House Ownership and Other Property Associated with the Land for the divided property in accordance with the law.
9. Acknowledge the voluntary agreement of Mr. Phạm Ngọc H and Mrs. Nguyễn Thị Thanh T4 to allow Mrs. Nguyễn Thị Đ to use the house at Group1, B Hamlet, V Town, X District, Hà Nội, until her death.

Additionally, the appellate court also decided on court fees and liability for delayed enforcement.

In the Cassation Appeal Decision No. 10/QĐKNGĐT-VKS-DS dated February 1^st, 2021, the Chief Procurator of the High People’s Procuracy in Hà Nội City appealed the Appellate Civil Judgment No. 438/2020/DS-PT dated November 24^th, 2020, of the People’s Court of Hà Nội City, requesting the Judicial Committee of the High People’s Court in Hà Nội to conduct a cassation trial, vacate the aforementioned Appellate Civil Judgment, and uphold the First-instance Civil Judgment No. 24/2020/DS-ST dated July 22^nd, 2020, of the People’s Court of Thanh Trì District, Hà Nội.

At the cassation hearing, the representative of the High People’s Procuracy in Hà Nội City recommended the Judicial Committee of the High People’s Court in Hà Nội to accept the appeal of the Chief Procurator of the High People’s Procuracy in Hà Nội City.

COURT’S OPINION:

[1] The house and land at Plot No. 57-2, Map Sheet No. 33, located at Group 1, B Hamlet, V Town, X District, Hà Nội, originated from the property of Mr. Phạm Ngọc T and Mrs. Nguyễn Thị Đ, who were issued a Certificate of Land Use Rights by the People’s Committee of Thanh Trì District in 2005 for an area of 62.68m² for private use and 21.3m² for common use under the names of Mr. T and Mrs. Đ.

[2] On March 12^th, 2012, at the M Notary Office, Mr. T and Mrs. Đ executed a joint will granting their biological grandson, Mr. Phạm Ngọc H, full rights to use and transfer the aforementioned property. Following Mr. T’s death, on October 26^th, 2019, at the Q Notary Office, Mrs. Đ and Mr. H entered into an Agreement on the Division of Inheritance.

This agreement stipulated that Mr. H would inherit the entire estate left by Mr. T, while Mrs. Đ and Mr. H would jointly own and use the house and land area. The Hà Nội Department of Natural Resources and Environment subsequently issued a Certificate of Land Use Rights, House Ownership, and Other Property Associated with the Land for an area of 84m², which included 62.7m² for private use (with an actual measurement of 66.6m²) and 21.3m² of a common path (with an actual measurement of 22.2m²), Plot No. 57-2, Map Sheet No. 33, under the names of Mrs. Đ and Mr. H.

[3] According to the On-Site Inspection and Assessment Record dated May 14^th, 2020, Plot No. 57-2 has a private use land area with dimensions of 3.56m width along the common path; 3.67m width at the rear; with a 2.5-story house and a one-story house on the land. The Document No. 1101/UBND-TTPTQĐ dated June 3^rd, 2020, the People’s Committee of Thanh Trì District indicated that 11.2m² of Plot No. 57-2 was reclaimed by eminent domain, leaving a remaining area of 55.0m² for use.

[4] During the case proceedings, both Mrs. Đ and Mr. H expressed their desire to receive the house and land and to compensate the other for its corresponding value. However, it was established that the house and land originated from property acquired by Mrs. Đ and Mr. T, where the couple had resided since 1980. After Mr. T’s death, Mrs. Đ continued to manage, use, and maintain the property, including worshiping Mr. T. Mr. H only moved in to live with Mrs. Đ in 2016 and did not establish any property on the land.

Mrs. Đ claimed that, in reality, she and Mr. H could not continue to live together, and she wished to retain the house and compensate Mr. H. Mrs. Đ and Mr. T’s children, namely Mrs. Phạm Thị Lan A, Mrs. Phạm Thị Hải Y, Mrs. Phạm Thị T1, and Mrs. Phạm Thị T2, requested that the house and land be given to Mrs. Đ for her residence and to provide a place to worship Mr. T until her death.

It was found that Mrs. Đ, being elderly and weak, faced limitations in changing or establishing another residence. Therefore, granting the house and land to Mrs. Đ for ownership and use, and requiring her to pay Mr. H the amount of VND 1,390,198,415 as decided by the first-instance court, is appropriate given the origin and process of forming the joint property. Mr. Phạm Ngọc H is entitled to half the value of the aforementioned joint property, which is sufficient for him to establish a new residence.

[5] Thus, there are grounds to accept a part of the appeal and to amend the Appellate Civil Judgment No. 438/2020/DS-PT dated November 24^th, 2020, of the People’s Court of Hà Nội City.

In light of the foregoing,

IT IS DECIDED:

Pursuant to point a, clause 1, Article 337; Article 342; clause 5, Article 343 of the Civil Procedure Code, and accepting part of the appeal of the Chief Procurator of the High People’s Procuracy in Hà Nội City, the Court amends the entire Appellate Civil Judgment No. 438/2020/DS-PT dated November 24^th, 2020, of the People’s Court of Hà Nội City in the case “Joint Property Division Dispute” between the plaintiff, Mrs. Nguyễn Thị Đ, and the defendant, Mr. Phạm Ngọc H, as follows:

1. The lawsuit of Mrs. Nguyễn Thị Đ against Mr. Phạm Ngọc H is accepted.
2. The joint property of Mrs. Nguyễn Thị Đ and Mr. Phạm Ngọc H is determined as the land use rights and other property associated with the land at Plot No. 57-2, Map Sheet No. 33, located at Group 1, B Hamlet, V Town, X District, Hà Nội, with an area of 84m², including 62.7m² of private use and 21.3m² of common path, with a total value of VND 2,780,396,830. Mrs. Đ and Mr. H each have the right to own and use half of the joint property, valued at VND 1,390,198,415.
3. The joint property of Mrs. Nguyễn Thị Đ and Mr. Phạm Ngọc H is divided as follows:

– Mrs. Nguyễn Thị Đ shall own and use the entire house and land at Plot No. 57-2, Map Sheet No. 33, located at Group 1, B Hamlet, V Town, X District, Hà Nội (as per the Certificate of Land Use Rights, Ownership of Residential Housing, and Other property Attached to Land No. CS 939809 dated November 14^th, 2019, issued by the Hà Nội Department of Natural Resources and Environment in the names of Mrs. Nguyễn Thị Đ and Mr. Phạm Ngọc H).

– Mrs. Nguyễn Thị Đ is obligated to pay Mr. Phạm Ngọc H half of the joint property value, amounting to VND 1,390,198,415 (One billion, three hundred ninety million, one hundred ninety-eight thousand, four hundred fifteen đồng).

– Mrs. Nguyễn Thị Đ has the right and obligation to contact the competent state authorities to carry out the procedures for adjusting (or changing, issuing) the Certificate of Land Use Rights, House Ownership, and Other Property Associated with the Land for the divided property in accordance with the law.

– From the date of the enforcement request by the party entitled to enforcement until full payment of all amounts, the party obligated to enforce must also pay interest on the unpaid amount at the interest rate specified in Article 357 of the 2015 Civil Code.

4. Court fees:

– Mrs. Nguyễn Thị Đ is exempt from first-instance civil court fees and does not have to pay appellate civil court fees.

– Mr. Phạm Ngọc H must bear the first-instance civil court fees of VND 53,700,000 (Fifty-three million, seven hundred thousand đồng), which will be deducted from the advance court fee he paid of VND 300,000 (Three hundred thousand đồng) according to Receipt No. 06808 dated August 5^th, 2020, of the Civil Judgment Enforcement Department of Thanh Trì District, leaving a balance of VND 53,400,000 (Fifty-three million, four hundred thousand đồng).

This cassation decision takes legal effect from the date the Cassation Panel issues the decision.

CONTENT OF THE CASE LAW:

“[2] On March 12^th, 2012, at the M Notary Office, Mr. T and Mrs. Đ executed a joint will granting their biological grandson, Mr. Phạm Ngọc H, full rights to use and transfer the aforementioned property. Following Mr. T’s death, on October 26^th, 2019, at the Q Notary Office, Mrs. Đ and Mr. H entered into an Agreement on the Division of Inheritance.

This agreement stipulated that Mr. H would inherit the entire estate left by Mr. T, while Mrs. Đ and Mr. H would jointly own and use the house and land area. The Hà Nội Department of Natural Resources and Environment subsequently issued a Certificate of Land Use Rights, House Ownership, and Other Property Associated with the Land for an area of 84m², which included 62.7m² for private use (with an actual measurement of 66.6m²) and 21.3m² of a common path (with an actual measurement of 22.2m²), Plot No. 57-2, Map Sheet No. 33, under the names of Mrs. Đ and Mr. H.

[3] According to the On-Site Inspection and Assessment Record dated May 14^th, 2020, Plot No. 57-2 has a private use land area with dimensions of 3.56m width along the common path; 3.67m width at the rear; with a 2.5-story house and a one-story house on the land. The Document No. 1101/UBND-TTPTQĐ dated June 3^rd, 2020, the People’s Committee of Thanh Trì District indicated that 11.2m² of Plot No. 57-2 was reclaimed by eminent domain, leaving a remaining area of 55.0m² for use.

[4] During the case proceedings, both Mrs. Đ and Mr. H expressed their desire to receive the house and land and to compensate the other for its corresponding value. However, it was established that the house and land originated from property acquired by Mrs. Đ and Mr. T, where the couple had resided since 1980. After Mr. T’s death, Mrs. Đ continued to manage, use, and maintain the property, including worshiping Mr. T. Mr. H only moved in to live with Mrs. Đ in 2016 and did not establish any property on the land.

Mrs. Đ claimed that, in reality, she and Mr. H could not continue to live together, and she wished to retain the house and compensate Mr. H. Mrs. Đ and Mr. T’s children, namely Mrs. Phạm Thị Lan A, Mrs. Phạm Thị Hải Y, Mrs. Phạm Thị T1, and Mrs. Phạm Thị T2, requested that the house and land be given to Mrs. Đ for her residence and to provide a place to worship Mr. T until her death.

It was found that Mrs. Đ, being elderly and weak, faced limitations in changing or establishing another residence. Therefore, granting the house and land to Mrs. Đ for ownership and use, and requiring her to pay Mr. H the amount of VND 1,390,198,415 as decided by the first-instance court, is appropriate given the origin and process of forming the joint property. Mr. Phạm Ngọc H is entitled to half the value of the aforementioned joint property, which is sufficient for him to establish a new residence.”

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