CONTENTS
- 1. The Client Who Requested Help With a Construction Payment Claim Lawsuit
- - What Is a Construction Payment Claim Lawsuit?
- 2. Assistance for a Construction Payment Claim Lawsuit
- - Assistance in the Construction Payment Claim Lawsuit: Asserting the Loss From Labor
- 3. The Result of the Assistance in the Construction Payment Claim Lawsuit: Successfully Obtaining a Decision to Pay the Excess Construction Payment
1. The Client Who Requested Help With a Construction Payment Claim Lawsuit
This is a client who requested help with a construction payment claim lawsuit.
The client is the representative of a company that manufactures automobile equipment, and the defendant was a customer who had commissioned construction work from the client.
The client set the price for all of the work with the defendant at 400 million won, and they contracted that the defendant would supply the materials and other items needed for the work.
However, during the work, an unexpected loss arose due to the defendant's fault, and the client ended up spending an amount exceeding the contract price.
The client therefore demanded that the defendant pay the additional construction payment, but the defendant had still not paid.
The client ultimately decided to file a lawsuit to obtain payment of the excess construction payment and requested help from Daeryun Law Firm.
What Is a Construction Payment Claim Lawsuit?
A 🔗construction payment lawsuit is, as the name suggests, a lawsuit filed with the court by a person who has performed construction work in order to receive the construction payment.
It arises when, even though the work has been completed in accordance with the contract, the party that ordered the work does not pay the amount specified in the contract on time or breaches the terms of the contract.
The principal causes of construction payment claim lawsuits include 🔗violation of the Fair Transactions in Subcontracting Act, nonperformance of the contract, delayed payment, contract changes, and quality problems.
To file a construction payment claim lawsuit, it is necessary to prove ▲that a contract for work was concluded, ▲that the parties agreed that compensation would be paid for the work, and ▲that the work specified in the contract was completed.
Construction work contracts, work agreements, specifications, material purchase statements, building design drawings, estimates, and building delivery documents may be used for this proof.
The Legal Procedure for Obtaining a Construction Payment
For a construction payment claim lawsuit, you may first send a certified content-proof letter.
A certified content-proof letter has no legal binding force or enforceability in itself, but it can place psychological pressure on the other party and induce payment of the amount or a settlement.
A certified content-proof letter can also interrupt the extinctive prescription of the construction payment claim under certain conditions, and it may later be submitted as supporting evidence in the construction payment claim lawsuit.
The next step is to obtain a provisional attachment or a provisional injunction.
Pursuing a construction payment claim lawsuit is ultimately for the purpose of obtaining the authority to enforce against the contractor's property and satisfying the claim.
However, even after pursuing a construction payment claim lawsuit over a long period and obtaining a title of execution, it may be of no use if the debtor's property, such as real estate, cannot be identified.
To prevent this situation, it is recommended to identify the debtor's property before filing the construction payment claim lawsuit and to set up a 🔗provisional attachment or provisional injunction, blocking the debtor from disposing of or concealing the property.
2. Assistance for a Construction Payment Claim Lawsuit
An attorney provided assistance for the construction payment claim lawsuit.
Assistance in the Construction Payment Claim Lawsuit: Asserting the Loss From Labor
For the construction payment claim lawsuit, the attorney asserted the portion of loss in the assigned labor caused by the delayed delivery of missing materials.
The defendant had agreed in the contract to supply the materials needed for manufacturing the equipment.
However, the materials the defendant was supposed to supply were not delivered for more than two weeks, so the work was delayed, and the client had to bear the resulting loss in labor.
The attorney handling the construction payment lawsuit emphasized that the work could not be carried out because of the defendant's delivery delay and that the client therefore suffered a loss in labor costs due to a cause attributable to the defendant.
The attorney handling the construction payment lawsuit asserted that, because of the defendant's fault, the client suffered a loss equal to the difference between the labor costs the client actually spent and the subcontract payment the client actually received, and that the defendant should compensate this.
3. The Result of the Assistance in the Construction Payment Claim Lawsuit: Successfully Obtaining a Decision to Pay the Excess Construction Payment
As a result of the assistance in the construction payment claim lawsuit, the court found that the client's assertion had merit and issued a judgment ordering payment of the excess construction payment for the amount of loss.
In a construction payment claim lawsuit, it is necessary to respond by analyzing in detail the terms of the construction contract, the payment schedule, the scope of work, the quality standards, and other matters.
In particular, because clearly understanding the legal meaning of the contract is important in this process, it is recommended to proceed with the help of an experienced attorney.
At Daeryun Law Firm, attorneys experienced in construction payment claim lawsuits form a task force of three to twenty members to provide response and assistance dedicated solely to the client's case.
If you are preparing a construction payment claim lawsuit in a situation such as the one above, you may receive an 🔗attorney referral from Daeryun Law Firm.
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.
