On October 7, 2012, Seoul High Court Civil Department 31 (Associate Judge: Dong Won LEE) turned down the lawsuit filed by a creditor ‘Kim’ of ‘C’ Company [anonymous] that made a transfer contract with an American promoter. Kim filed the lawsuit to claim exaction of an indemnity of 1.25 billion KRW against C-JeS Entertainment, the management company of JYJ.
“The Court cannot acknowledge the evidence submitted by plaintiff[Kim] insisting that the management company[C-JeS Entertainment] approved that the rights of the concerts had been partly transferred. The fact that C Company made the related contracts and paid certain expense were to fulfill the contract made with the promoter who represented the management[C-JeS], so cannot be acknowledged that it dealt with the affairs of the management itself”, explained by the court.
The court continued, “It is not enough to be certain of that the management company deceived C company only based on that it did not settle up after deciding the concerts as free of charge[for the audience], therefore Kim cannot claim restitution of unjust enrichment or repayment of expense of office work”.
JYJ was due to perform in Asia, the U.S.A. and other countries after releasing its first album ‘The Beginning’ in October 2010[2010 Worldwide Showcase] and C Company was in charge of process in Hong Kong and the U.S.A. JYJ had troubles in its work visa in the U.S.A, but the management company spontaneously changed the concerts as free-of-charge and finished the concerts in the U.S.A.
Kim, who had a bond of C Company, filed a lawsuit to claim 1.25 billion KRW against JYJ’s management company insisting “The management asked withdrawal on condition of settling up the expense caused by its free concerts but did not fulfill”.
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