Claim for about KRW 430 million in construction fees fully defeated
By setting off defect damages and delay penalties, our client was found to owe no remaining fees, and the claims for payment and transfer of title were all rejected.
How the case unfolded
Background
Our client hired a builder to extend a building. The work finished well past the agreed completion date and left defects. The builder sued for about KRW 430 million in unpaid fees and transfer of part of the building under an in-kind payment arrangement, and the builder's creditors joined the suit.
Issues and ruling
The court recognised that our client held about KRW 828 million in damages in lieu of defect repair and about KRW 361 million in delay penalties. Set off against the remaining fees of about KRW 407 million, the builder's claim was fully extinguished, and the in-kind payment had no effect because title had not been registered.
Outcome
Part of the claim was dismissed as inadmissible and the rest, including the creditors' claims, was rejected. The opposing side was ordered to bear the costs.
This is the outcome of an individual case and does not guarantee the same result in similar matters. Some facts have been generalized to protect the parties involved.
Related practice and case
See the practice area and another success story from the same field.
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