CONTENTS
- 1. The Client's Situation
- - Case-Related Information Explained by the Gangneung Attorney
- 2. The Gangneung Attorney's Assistance
- - The Gangneung Attorney's Argument | Basis for the Premium Assessment
- - The Gangneung Attorney's Argument | The Process of the Store Transfer
- 3. The Result of the Gangneung Attorney's Assistance
1. The Client's Situation
This is the account of the client whom the attorney met.
The client, who currently runs a café as a self-employed business, originally operated two stores.
Then, hearing that a once-close acquaintance had been defrauded and had fallen on hard times, the client felt sympathy and transferred one of his stores to that acquaintance for only a low key-money premium.
However, the acquaintance, who was inexperienced in self-employment, was unable to sustain even the café business properly and closed it down before long.
After the closure, the acquaintance filed a damages lawsuit, claiming that the client had acted with intent to deceive in the transfer of the business.
Feeling that this was absurd, the client came to the Gangneung attorney to resolve the matter through legal assistance.
Case-Related Information Explained by the Gangneung Attorney
A tenant whose commercial lease has ended may recover a key-money premium from a new tenant by assessing the tangible and intangible value of the business, such as the shop fixtures, the goodwill of the business, and the location of the shop.
Because the premium assessment may also include the transfer of business know-how, if there was an intent to deceive the new tenant during the transfer of the business, civil liability such as damages can arise.
For example, if a person inflates or falsely reports figures such as sales records, foot traffic, or business clients and receives an excessive premium, damages arising from such an intent to deceive can be established.
As in the client's case, if a person honestly assessed the premium and recovered only that amount without any intent to deceive, the absence of any intent to deceive must be proven through a process of legal rebuttal.
This kind of premium litigation requires careful review of the complex legal grounds relating to the premium and calls for specialized knowledge in the relevant area, so the assistance of an attorney is important.
2. The Gangneung Attorney's Assistance
After closely examining the conversations, messages, and documents relating to the transfer agreement between the client and the acquaintance, the attorney compared them with the actual basis for the premium and argued as follows.
The Gangneung Attorney's Argument | Basis for the Premium Assessment
In preparing the café, the client had actually invested more in interior work, equipment, and the like than the amount of the premium, and records of all of this remained.
The attorney submitted the client's investment records, including interior work, as evidence and emphasized that the premium received by the client was neither false nor excessive.
The Gangneung Attorney's Argument | The Process of the Store Transfer
Even before taking over the store, the plaintiff had come to the client's café, shown interest in starting a café, and asked whether the client had any intention of handing it over, thus first signaling an intention to take it over.
The client, feeling sorry for the plaintiff, who had been defrauded, transferred it at a low price.
The attorney emphasized that the client had no intent to deceive and that nothing had been falsely inflated in the process of transferring this business.
3. The Result of the Gangneung Attorney's Assistance
As a result of the arguments advanced by the attorney, the client succeeded in reducing the damages claimed by the plaintiff by approximately 80%.
If You Are Caught in Litigation Over a Key-Money Premium
This was the account of a client who handed over a business to an acquaintance in difficult circumstances, only to be sued for damages in return.
Because the assessment of a key-money premium is driven more by individual judgment than by clear and objective grounds, the process of proof can be complex if litigation arises.
In particular, in a damages lawsuit arising from a premium, the issues can become even more varied, because the fact that loss occurred and whether one caused that loss must be proven or rebutted as a matter of law.
For this reason, in this kind of 🔗lease dispute, receiving help from an attorney with extensive case experience is more important than anything.
If you need a consultation, please seek advice through a 🔗legal consultation booking.
This content is based on actual case studies of Daeryun Law LLC with some adaptations, and the copyright belongs to our firm.
Unauthorized reproduction, duplication, or distribution and other copyright infringements may result in legal action under applicable laws.
