Pohang attorney defense case | Pohang attorney defends a franchise headquarters in a defamation lawsuit and obtains an acquittal

The client who came to the Pohang attorney was a sole proprietor operating a franchise headquarters.

The client was also responsible for franchisee sales management duties at the headquarters.

Among the several franchisees managed by the client, Branch C had received warnings on multiple occasions for matters such as dress code violations and unauthorized self-purchasing.

When Branch C's violations continued to be discovered despite the warnings given, the client filed a lawsuit for the stipulated sum arising from the violations.

After hearing about the above situation in a conversation the client had with another franchisee, Mr. W, the owner of Branch C asserted that his reputation had been damaged and filed a complaint.

The client then visited Daeryun's Pohang office to obtain the assistance of a Pohang attorney with extensive experience in franchise litigation.

Criminal Act (Penal Code) Article 307 (Defamation)
① A person who damages the reputation of another by publicly alleging facts shall be punished by imprisonment with labor or imprisonment without labor for not more than 2 years or by a fine not exceeding 5 million won.

② A person who damages the reputation of another by publicly alleging false facts shall be punished by imprisonment with labor for not more than 5 years, suspension of qualifications for not more than 10 years, or a fine not exceeding 10 million won.

The Pohang attorney explained that the owner of Branch C, who filed the defamation complaint against the client, and another franchisee, Mr. W, had violated the franchise agreement.

The owner of Branch C and Mr. W had been sued by the headquarters for engaging in unauthorized self-purchasing without the headquarters' permission.

They had also violated their obligations not to compete and to maintain confidentiality, and so were facing a claim for damages as well.

The Pohang attorney emphasized that the lawsuit had been filed in a situation where Mr. W and the owner of Branch C harbored ill feelings because of the headquarters' filing of the lawsuit.

The Pohang attorney argued that the client had never made any remark that would damage the reputation of the owner of Branch C.

The owner of Branch C, based on what he had heard from Mr. W, filed a defamation lawsuit claiming that the client had made remarks such as that he had 'the disposition of a thug and was a low-class person.'

However, the client had never made any such remarks, and the matter had been distorted by Mr. W, who held a grudge against the client.

Daeryun's Pohang attorney emphasized that there was no clear evidence to support the assertions of the owner of Branch C.

The client who visited Daeryun's Pohang office to obtain the assistance of the Pohang attorney was facing a defamation complaint filed by a franchisee.

In response, Daeryun assembled a case team of Pohang attorneys with extensive experience in franchise litigation and assisted throughout the entire litigation process.

As a result of the litigation, the court determined that the case was one in which the criminal facts had not been proved and rendered an acquittal of the client.

The client, who was acquitted, conveyed his thanks to the Pohang attorney who had done his utmost on his behalf.

As in the above case, if you need to defend against a lawsuit arising from a franchise dispute, please 🔗visit Daeryun Law Firm for a consultation.