[Civil] Case of Securing Full Victory for Landlord in Temporary Use Lease Dispute under the Commercial Building Lease Protection Act in Both the First Trial and the Appeal Trial
1. Case Summary
The plaintiff is one of the major banks in Korea and owns a large building in Myeong-dong, Seoul, entrusted by A Asset Management, the largest domestic asset management company. The plaintiff initially entered into a short-term lease contract with the defendant, who operated several "pop-up stores" in Myeong-dong during the COVID-19 pandemic. The initial contract period was 6 months, and the parties extended the contract through four subsequent short-term leases, each lasting 2 to 3 months.Once the COVID-19 situation stabilized, the plaintiff refused further renewal of the short-term leases and requested the defendant to vacate the premises. However, the defendant refused to vacate, claiming the right to lease renewal under Article 10 of the Commercial Building Lease Protection Act. In response, the plaintiff filed a lawsuit demanding the delivery of the building, arguing that the lease fell under the category of "lease for temporary use" as stipulated in Article 16 of the Commercial Building Lease Protection Act, thus invalidating the defendant's right to renewal. We successfully represented the plaintiff, winning both the first trial and the appeal trial.
2. Our Argument and Role
Article 16 of the Commercial Building Lease Protection Act stipulates, "This Act shall not apply if it is clear that the lease is for temporary use." This provision creates an exception for leases intended for temporary use from the general protections of the Commercial Building Lease Protection Act. However, there has been no established legal definition or consistent precedent on what constitutes a "lease for temporary use."We (a) clearly explained the concept and legislative intent of "lease for temporary use" to the court, (b) diligently researched and reviewed lower court precedents related to the matter, presenting favorable circumstances, and (c) actively argued and demonstrated several key points: (i) the lease in question was a short-term lease for "pop-up stores," (ii) the rent was significantly lower than the market rate, (iii) the plaintiff distinguished between formal lease contracts and leases for temporary use, and (iv) emails sent by the defendant showed that the defendant was aware the lease was intended for temporary use. These arguments proved that the lease was indeed a "lease for temporary use," thereby nullifying the defendant's right to demand renewal.As a result, the plaintiff's claim was fully upheld in the first trial. Though the defendant appealed and sought a stay of execution, the appeal was dismissed, and the defendant voluntarily vacated the premises.
3. Significance of the Ruling
This case marks a significant appellate court decision on the issue of leases for temporary use under the Commercial Building Lease Protection Act. It is expected to serve as an important reference in future cases.
□ Attorneys in charge: Noh Man-Kyeong, Son Young-Ho and Choi Young-Su
2024. 09. 30
Construction Administrative Affairs
[Construction Administration] Case of Successfully Obtaining a Suspension of the Notification Regarding the Accidental Death Rate
1. Case Summary
a. Party Represented by Barun Law
A specialized construction company ("Company A") that received a notification from the Korea Occupational Safety and Health Agency ("KOSHA") regarding the accidental death rate for 2023.
b. Background of the Case
The client was a subcontractor of a general construction company ("Company B"). At the construction site, another specialized construction company ("Company C"), hired by Company B, was conducting work when a day laborer employed by Company B died in an accident. KOSHA included the death of this worker in the number of accidental deaths associated with the client's construction site, notifying the client that its accidental death rate for 2023 was 28 times higher than the industry average for specialized construction companies.
c. Litigation Details
The court recognized that the notification of the accidental death rate issued to the client by KOSAH could cause irreparable harm to the client. In addition, the court found that there was an urgent need to suspend the effect of the notification to prevent such damage. The court also concluded that suspending the notification would not significantly impact public welfare. Therefore, the court granted the client's request for suspension of the notification.
2. Judgment
Seoul Administration Court Decision 2024Ah12714, dated September 4, 2024
3. Our Argument and Role
We meticulously analyzed the facts of the case and argued that the client would suffer severe and irreparable harm due to the notification. Through in-depth research into the Occupational Safety and Health Act and the constitutional principle of individual responsibility, we developed a strong legal argument that the death of the worker should not be counted in the calculation of the client's accidental death rate. Furthermore, we carefully examined a similar case in which a large law firm had failed to secure both the cancellation of a notification and a suspension of the enforcement. By emphasizing the differences between that case and this one, we actively persuaded the court during hearings.
4. Significance of the Judgment
Given the increasing regulatory scrutiny on construction companies due to the Serious Accidents Punishment Act and other safety-related laws, this case is significant as it marks the first time a court has recognized the actionable nature of the notification regarding the accidental death rate—a key factor in subcontractor selection by general construction companies—and granted a suspension of its enforcement, setting a crucial precedent for future rulings.
□ Attorneys in charge: Lee Dong-Hoon, Jung Jae-Hee, Park Sung-Ho and Son Ju-Yeong
2024. 09. 30
Anti-Corruption and Financial Economic Crimes
[Anti-Corruption & White-Collar Crimes] A Case Where a Criminal Conviction Based on a Civil Judgment Recognizing Forgery of Private Documents Was Overturned, Leading to a Complete Acquittal
1. Case Overview
a. Party Represented by Barun Law
The defendant, who was sentenced to 10 months in prison in the first trial.
b. Background of the Case
The client's deceased husband (the decedent in this case) was the owner of four real estate properties. While undergoing cancer treatment in a hospital, he passed away. The prosecutor claimed that although the decedent lacked the mental capacity to donate the properties, the client took advantage of the fact that she possessed the decedent's seal and forged donation contracts that transferred ownership of the properties to herself and her children. Based on these forged contracts, ownership transfers were carried out, leading to charges of forgery of private documents, exercising forged documents, falsification of official electronic records, and exercising falsified official electronic records. Additionally, filing a charge of attempted fraud against the client, the prosecutor argued that the client had submitted the forged donation contracts in an attempt to deceive the court and obtain financial benefits equivalent to Mr. A's inheritance share in a civil lawsuit filed by the client's stepchild ("Mr. A"), and that as the court ordered the client and her children to proceed with the transfer of ownership to Mr. A for the inherited share of the properties for the client to fail to achieve her intent.
c. Litigation Details
The first trial court made the following judgment, finding all charges to be true and sentencing the client to 10 months in prison: "It could not be determined whether the fingerprint on the confirmation document used for the ownership transfer was indeed stamped by the deceased. In the civil lawsuit filed by Mr. A against the client, witness Mr. B, who handled the ownership transfer procedure for the properties, testified that 'the deceased had expressed his intent to donate'. However, Mr. B's testimony was deemed unreliable, and considering that the caregiver, who cared for the deceased until his death, testified that 'she never heard the deceased speak', it was concluded that the witness had forged the donation contracts. The witness used these forged donation contracts to carry out the ownership transfer procedure, and the forged donation contracts were also submitted as evidence in the civil lawsuit with Mr. A."
2. Judgment
Seoul Central District Court Decision 2023No2451, dated August 28, 2024.
3. Our Argument and Role
After being appointed as defense counsel for the appeal, Our Tax and Administrative Group carefully analyzed the first trial judgment, thoroughly reviewed existing records, and closely examined the legal principles regarding document forgery, litigation fraud, and the burden of proof in criminal procedure.Specifically, (a) we conducted a forensic comparison of the fingerprint on the confirmation document used for the property transfer against the decedent's fingerprint stored by the National Police Agency, proving that the fingerprint belonged to the decedent. (b) We carefully analyzed the decedent's medical records, highlighting that the first trial judgment had overlooked medical records showing that the decedent was conscious around the time the donation contracts were made, thus contradicting the conclusion that the decedent lacked mental capacity. (c) The defense also demonstrated that the first trial court had wrongly accepted the caregiver's testimony (who was not present during the deceased's expression of his intent to donate and delegate authority) as evidence of the decedent’s incompetence. (d) We also pointed out that the first trial had misunderstood the civil judgment regarding the stepchild's inheritance recovery lawsuit and had applied civil law principles directly to the criminal case, leading to an error in assessing the burden of proof and the credibility of witness testimony in the criminal proceedings. (e) Finally, the defense highlighted family matters that had not been emphasized in the first trial, showing that the decedent had intended to donate the properties to the client and her children even before his hospitalization.The appellate court accepted our arguments, overturned the first trial decision, and acquitted the client.
4. Significance of the Judgment
This case reaffirms that the burden of proof and the standard of evidence in criminal trials differ from civil cases. Even if forgery was confirmed in a related civil case, the prosecutor must still prove the criminal charges beyond a reasonable doubt in criminal proceedings, underscoring the importance of this principle in legal practice.
□ Attorneys in charge: Jung Jae-Hee, Park Sung-Ho and Son Ju-Yeong
2024. 09. 30
Corporate Finance
[Financial Advisory] Completion of Advisory Services for Woori Bank Regarding the Sale of Special Bonds (Approx. USD140 million) in Q3
Barun Law LLC (attorneys Choi Jin-Sook, Choi Jae-Woong, Kim So-Yeon, Song Ye-Na, and Lee Sung-Jun) successfully completed the advisory services for Woori Bank regarding the sale of special bonds worth approximately USD140 million.We have completed the preparation and review of the Loan Sale and Purchase Agreement (LSPA) to sell the unsecured bonds, with a total bond amount of approximately USD140 million based on the outstanding principal balance of 11,951 individual rehabilitation debtors from Woori Bank's non-performing loans (NPL). We also reviewed applicable regulations under the Lending Business Act, the Rehabilitation Act, the Debtor Protection Act, and the Debt Collection Act to provide legal advice on the legal issues arising at each stage of the bond sale.The sale of bonds by financial institutions differs from typical bond transfers under civil law, as it must comply with the procedures and methods outlined in the debt collection and loan sale guidelines under the supervision of the Financial Services Commission. It also requires a review of restrictions on purchasers, target bonds, and resale, in accordance with agreements made by the Financial Services Commission with banks, savings banks, etc. (such as the Individual Delinquent Debt Purchase Fund Agreement and the Fresh Start Fund Support Agreement). We ensured that the transaction complied with the Financial Services Commission's guidelines and agreements by reviewing relevant press releases and sale guidelines and consulting related government agencies.Amid the prolonged economic downturn, with an increase in non-performing loans in financial institutions, it is expected that banks will actively liquidate and sell non-performing loans to manage asset soundness. We are actively participating as a legal advisor in the non-performing loan sale projects of the five major commercial banks, offering the best legal services with expertise and practical knowledge in the non-performing loan market.
□ Attorneys in charge: Choi Jin-Sook, Choi Jae-Woong, Kim So-Yeon, Song Ye-Na and Lee seong-Jun
2024. 09. 30
Corporate Investigations & White Collar Defense
[Corporate Criminal] A Case of Receiving a Non-indictment Decision on Behalf of the Accused, Who Was Sued by the Members of a Fishing Village Association for Obstructing Business by Prohibiting Passage Through Private Land
1. Case Overview
The client blocked an entry gate to prevent nearby fishing village residents from passing through his private land, which he owned, to utilize the land for personal purposes. The members of the fishing village association sued the accused for obstruction of business, arguing that the land owned by the accused had long been used as a passage to access the fishing grounds from the village, and blocking it interfered with their fishing activities, thus constituting the crime of obstruction of business.
2. Key Issues
- Whether the path on the accused's property qualifies as a "passage" and whether the plaintiffs have the right to pass through the property.- Whether the accused exercised "force."- Whether the plaintiffs' "fishing activities were obstructed."3. Our Argument and Role
We first identified that the previous owner of the land from 1996 to 2022 controlled access and that the land was within a military protection zone, where passage was restricted. We also found that there was a cliff between the land and the fishing grounds, proving that the land was not used as a passage to the fishing grounds. This refuted the plaintiffs' claims.Furthermore, we argued against the plaintiffs' claim of "free passage rights due to the relinquishment of exclusive use and enjoyment rights" or "right of passage to surrounding land." We showed that from 2019, when the previous owner installed an iron gate and fence, until 2022, the plaintiffs did not pass through the land, indicating that the owner had never permitted free use or relinquished the rights to use and enjoy the land. We pointed out that the right of passage to surrounding land applies only when there is no public road between the land and other properties, and since the plaintiffs were not landowners and the sea is not a public road, this claim was irrelevant and based on a legal misunderstanding.We further demonstrated that the accused, who had purchased the land with an existing iron gate and fence, had not exercised any particular "force," and that the plaintiffs had continued their fishing activities despite restricted passage by the previous owner, meaning their claims of obstruction were baseless.4. Significance of the Judgment
On the basis of our defense, the police decided not to pursue the case, explicitly stating in the non-indictment decision that there was no illegality in the client's use of the land, thereby protecting the client's property rights. This case required a thorough legal analysis that addressed both civil and criminal law issues, including the right of passage to surrounding land and the relinquishment of exclusive use and enjoyment rights. We effectively handled these complexities throughout the case.
□ Attorneys in charge: Choi Moon-Ki, Ko Eun-Young and Choi Young-Su
2024. 09. 30
Reconstruction / Redevelopment
[Reconstruction & Redevelopment] A Case Where an Exception Was Recognized Despite the Existing Precedent That the Buildings Subject to Sale Claims in a Reconstruction Project Must Be Entirely Included Within the Redevelopment Area
1. Case Overview
a. Party Represented by Barun Law
We represented the plaintiff which was a housing reconstruction association (hereinafter referred to as the "association") established for the purpose of carrying out a housing reconstruction project in accordance with the Urban and Residential Environment Improvement Act, and the defendant was the owner of a building straddling the redevelopment area.
b. Background of the Case
The association exercised its right to claim a sale for the building straddling the project area, requesting the execution of a title transfer registration procedure for the property and delivery of the real estate on the basis of the constitution of the sale contract.
c. Litigation Details
In the first trial, the court dismissed the association's claim without making a concrete judgment, stating that "land or buildings in an area not part of a residential complex within the redevelopment area that are subject to sale claims should be understood to mean land or buildings wholly included within the redevelopment area," following previous legal principles (Seoul Eastern District Court Decision 2011Gahap8636, dated July 12, 2013, and the appeal decision of the Seoul High Court Decision 2013Na51003, dated December 17, 2014; Seoul Central District Court Decision 2008Na14472, dated November 18, 2008, and the Supreme Court Decision 2008Da96574, dated April 23, 2009). We represented the association from the appeal stage.
2. Judgment
The court, based on our arguments, ruled, "While it is undisputed that land or buildings entirely outside the redevelopment area cannot be subject to a sale claim under Articles 39 and 16(3) of the old Urban Renewal Act, it is not reasonable to interpret the phrase 'land or buildings not within a residential complex included in the redevelopment area' to mean that only land or buildings 'wholly' included in the redevelopment area qualify. in cases where a building or land straddles the boundary of the redevelopment area, this constitutes a third category, different from cases where the whole is included or excluded unless demolished or divided, considering that the old Urban Renewal Act defines the 'land or building owner' who can become a member of a housing reconstruction project as the owner of land or buildings located 'within the redevelopment area' and the owner of housing located 'outside the redevelopment area, 'it seems that the old Urban Renewal Act did not intend to legislate for this third case. Taking all these points into account, the court may individually assess whether a sale claim can be exercised in such cases by considering factors such as the redevelopment area's location and function, the proportion of the building or land within the redevelopment area, and the circumstances leading to only part of the property being included." As a result, the court overturned the first decision and upheld the association's claims in full.
3. Our Argument and Role
We emphasized that the existing legal principles could not be mechanically applied to this case.Through an appraisal, it was confirmed that only 14 square meters, or approximately 4 pyeong (about 0.03% of the total redevelopment area), of the contested building was outside the redevelopment area.
We also pointed out that the land in question had already been designated as part of the city's planned road network before the association's promotion committee was established. The association had no involvement in this designation, and it was not feasible to push for a change in the redevelopment area. The land also functioned as a key road for both the redevelopment project and adjacent development projects, meaning that failure to secure the land would hinder the provision of essential infrastructure.
We further explained that despite the poor infrastructure, the project proceeded as a reconstruction project due to the existence of the "single-family house reconstruction project" under the old Urban Renewal Act. Although this program had been abolished in 2012, 12 years ago, due to its overlap with redevelopment projects, since ongoing projects based on previously established basic plans were allowed to continue, the association was forced to continue the redevelopment project formally as a "single-family house reconstruction project."4. Significance of the Judgment
Lower courts had traditionally taken a cautious stance regarding sale claims involving properties that straddle the boundary of a redevelopment area, emphasizing that recognizing sale claims for portions of properties within the redevelopment area could force owners to partially demolish buildings and suffer significant economic losses, essentially coercing them into selling the remaining portions of their property and infringing on their property rights.
▶ However, strict adherence to this legal principle, even in cases where the portion outside the redevelopment area is minimal or where that portion is necessary for the provision of essential infrastructure, has sometimes hindered the progress of redevelopment projects.
▶ This judgment is significant in that it recognized an exception to this principle, establishing that the court can individually assess factors such as the proportion of the property within the redevelopment area, its location, function, and other circumstances when deciding whether to grant a sale claim, thus addressing some of the unreasonable aspects of previous decisions in redevelopment projects.
□ Attorneys in charge: Kim So-Youn, Kim Yong-Woo and Kim Chae-Young
2024. 09. 30