A private real estate company has been awarded over 8.41 million yuan in compensation after the Supreme People's Court overturned previous rulings in a case involving unfulfilled administrative promises by a local government. The landmark decision, announced on the first anniversary of the Private Economy Promotion Law's implementation, marks the first time the Supreme Court has applied this law in a judicial ruling.

The case originated from a 2010 meeting memorandum issued by a municipal government, which agreed that the real estate company would provide additional compensation to affected residents for a land parcel, with the government promising to offset these costs through preferential policies on land transfer, plot ratio, and supporting fees. The company fulfilled its obligation by reaching a mediation agreement with residents in 2012, which was endorsed with the government's official seal.

However, when the municipal government failed to honor its commitments regarding plot ratio and fee concessions, the company filed an administrative lawsuit seeking reimbursement for the advance compensation payments and associated costs. Both the initial trial and subsequent appeal resulted in rulings against the company.

Upon review, the Supreme Court emphasized that strengthening government integrity is crucial for social credit system development and enhancing governmental credibility. The court acknowledged the government's efforts to fulfill certain promises, such as transferring 40 mu of land and adjusting plot ratios, but noted its failure to negotiate alternative compensation when specific concessions became unfeasible.

Citing Article 70 of the Private Economy Promotion Law, which mandates that governments honor policy commitments and contracts with private enterprises, the court ruled that the municipal government must share responsibility for the losses incurred. Considering the circumstances, background, and shared responsibilities, the court determined the government should bear half of the total 16.82 million yuan loss, amounting to 8.41 million yuan.

This case represents the first administrative ruling where the Supreme Court has applied the Private Economy Promotion Law. Judicial authorities stated that the ruling establishes a legal framework of "administrative promise review—determination of non-performance—compensation quantification," demonstrating the judiciary's role in upholding the principle that "the rule of law is the best business environment" and providing reassurance to private enterprises for stable development.