Supreme Court Grants Fourth Remand in the Same Case on Different Issues
Yulchon has successfully represented one of Korea’s largest insurance company (“S”) in an over 10-year-long legal battle against a construction company (“H”), during which the Supreme Court of Korea remanded the lower court’s decision in four separate instances in favor of S.
Relating to a development project to build a multipurpose office building in the office building in central Seoul (“Project”), S, a financial investor to the Project, extended a loan in the amount of KRW 53 billion (approx. USD 43.9 million) to the developer and KRW 50 billion (approx. USD 41.8 million) to purchasers of residential or office units in the Project when H assured S that it would take over the Project if the developer defaults on its obligations. The Project eventually went downhill, but H refused to assume the completion liability and take over the Project. S, unable to collect most of the money it injected into the Project, filed a lawsuit against H seeking damages, but lost the case in both the first instance and the appellate level. S retained Yulchon in the appeal to the Supreme Court, where the Court finally ruled in favor of S finding that H was in violation of its obligation to take over the Project. After the initial remand of the case, S prevailed in every instance. The fourth remand relates to the reference date from which default interest was to accrue at the interest rates stipulated under the Act on Special Cases Concerning Expedition, etc. of Legal Proceedings. With the latest Supreme Court decision, S was awarded a significant amount of additional default interest.