Foreign Parent vs。 Training Center ： Who’s Right on the Refund?

Source: OT-Team(G)，沈阳市司法局

  On April 4, the Shenyang Justice Bureau has announced the successful mediation of a tuition refund dispute between a foreign resident and an extracurricular training center.

Recently, H, a foreign resident in Shenyang, approached the city's foreign-related mediation office for assistance. Speaking in limited Mandarin, H recounted his experience: "In April 2022, I purchased a two-year basketball training package for my child. However, due to unforeseen circumstances, the classes were interrupted. Now that my child has entered high school and has a heavy academic workload, we are unable to continue the remaining 80+ lessons. I requested a refund for the unused sessions, but the training center refused, citing a contract clause stating that 'fees are non-refundable in cases of force majeure.' They argued that they had reserved time for make-up sessions and considered my request unreasonable."

Liu Jinyan, director of the Hunnan District Justice Office's foreign-related mediation center, reassured H: "Don't worry, we will handle this fairly." Liu then contacted the training center's representative and uncovered the core issue: a cultural difference in contract interpretation. The foreign parent emphasized fairness in contractual obligations, believing the center should refund fees for undelivered services. In contrast, the local business prioritized contractual terms, arguing that they had fulfilled their duty by offering make-up classes. This disconnect had stalled previous negotiations.

Liu and her team thoroughly reviewed WeChat communication records, the contract, and relevant policies in effect at the time of the interruption, referencing China's Civil Code to clarify each party's responsibilities. They discovered that while the contract stipulated non-refundable fees in force majeure cases, it did not specify alternative solutions, leaving room for improvement.

Using a "back-to-back" mediation approach, they separately identified the key concerns of both sides—H's desire to minimize financial loss and the training center's interest in maintaining its reputation and avoiding negative publicity. It became evident that H was open to non-cash solutions, and the training center had the capacity to offer customized services.

Applying the concept of Alternative Dispute Resolution (ADR), Liu and her team proposed a tiered solution: a partial cash refund immediately, with the remaining value converted into transferable VIP private coaching sessions with no expiration date. This balanced approach safeguarded the parent's financial interests while helping the business retain potential clientele.

Both parties were then invited to the mediation office, where they agreed to the compromise and signed a formal settlement agreement. "The mediators helped us identify areas to improve our service policies. This flexible approach is far more beneficial for business growth than litigation," said the training center's representative. H expressed gratitude, stating, "This mediation process made me feel welcomed and supported. Such inclusivity is crucial for those of us considering long-term residence here."

While this case may seem like a routine mediation, it played a vital role in bridging communication gaps between foreign parents and local training institutions.