[Ulsan Civil Litigation Attorney Assistance] Successful Provisional Attachment of an Ownership Transfer Registration Claim with the Assistance of an Ulsan Civil Litigation Attorney

The Ulsan civil litigation attorney was asked for assistance by the client, who was a corporate client.

The client had entered into a service contract with the debtor in this case, ____ Development Co., Ltd.

After the client had performed all obligations under the service contract and requested the service payment, the debtor paid only a portion and did not pay the remaining amount.

The client therefore decided to file a lawsuit for the service payment.

Even if the client prevailed in the lawsuit, however, enforcement could become difficult if the debtor disposed of the ownership transfer registration claim, which was the debtor's only asset, so the client wished to apply for a provisional attachment.

The client therefore asked the Ulsan civil litigation attorney for assistance with the application for provisional attachment of the ownership transfer registration claim.

• What is a provisional attachment?

A provisional attachment is a measure to preserve enforcement that, for the purpose of securing the enforcement of a monetary claim or a claim convertible into money (for example, a purchase price, a loan, a promissory note amount, a check amount, an assigned claim, a construction payment, wages, or a claim for damages), freezes the debtor's property in advance and temporarily deprives the debtor of the power to dispose of that property.

• Article 577 (Attachment of a Claim Relating to Real Estate)

(1) With respect to the attachment of a claim for delivery of real estate, the district court having jurisdiction over the location of the real estate shall, upon the application of the creditor or the third-party debtor, appoint a custodian and order the third-party debtor to deliver the real estate to the custodian.

(2) With respect to the attachment of a claim for transfer of a right relating to real estate, the district court having jurisdiction over the location of the real estate shall, upon the application of the creditor or the third-party debtor, appoint a custodian and order the third-party debtor to carry out, to the custodian, the procedure for registering the transfer of the right held in the debtor's name.

(3) In the case of paragraph (2), the custodian acts as the debtor's agent with respect to the application for registration of the transfer of the right held in the debtor's name.

(4) The creditor may apply to the court for a collection order against the third-party debtor in order to seek performance of the order under paragraph (1) or (2).

• Article 696 (Purpose of Provisional Attachment)

(1) A provisional attachment may be made with respect to a monetary claim or a claim convertible into money in order to preserve compulsory execution against movable or immovable property.

(2) A provisional attachment may also be made with respect to a claim for which the term has not yet arrived.

The creditor requested payment of the service amount, but the debtor paid only a portion and has not paid the remaining amount.

The attorney also argued that the debtor had acknowledged the entire service-payment debt in conversation with the creditor.

The debtor has no significant asset other than the ownership transfer registration claim at issue in this case.

Because the business had been at a standstill for a long period, there was a high likelihood that the debtor would transfer the business in this case to a third party and convert it into cash in order to minimize losses.

The attorney emphasized that, if this occurred, the creditor might later face difficulty enforcing the claim for the service payment, and argued the necessity of preservation.

The case above involved a client who contacted an Ulsan civil litigation attorney in order to place a provisional attachment on the ownership transfer registration claim, which was the debtor's only asset, so that the client could receive the service payment.

As in this case, a provisional attachment application may be necessary in order to prevent a debtor from disposing of property or transferring title.

At Daeryun Law Firm, attorneys who have handled numerous civil cases provide systematic assistance with clients' matters.

If you face a situation that calls for a provisional attachment or a provisional injunction, as in the case above, you may request assistance from the Ulsan civil litigation attorneys at Daeryun Law Firm at any time.