CONTENTS
- 1. The Story of the Client Who Sought Out the Gunsan Law Firm
- - The Construction Payment Lawsuit as Reviewed by the Gunsan Law Firm
- - What Is a Construction Payment Lawsuit?
- - Main Causes of a Construction Payment Lawsuit
- - Procedure of a Construction Payment Lawsuit
- - Examples of Evidence in a Construction Payment Lawsuit
- 2. Scope of the Gunsan Law Firm's Assistance
- - Promptly Reviewing the Extinctive Prescription of the Claim First
- - Asserting the Unfairness of the Defendant's Argument
- - Verification of Records in Collaboration With Daeryun Law Firm's Tax Accountant
- 3. What Was the Outcome of the Gunsan Law Firm's Construction Payment Lawsuit Assistance?
- - Construction Payment Lawsuit: Why a Lawyer's Assistance May Be Needed
1. The Story of the Client Who Sought Out the Gunsan Law Firm
This is the account of a client who requested help from a Gunsan law firm.
The client's grandfather, the representative of a small construction company in Gunsan, had entered into contracts with the defendant company.
Each time the client's grandfather entered into a contract, he completed the work diligently and meticulously without any delay, yet the defendant failed to pay part of the construction payment for the contracts that had been performed.
When payment of the unpaid construction payment was demanded from the defendant, the defendant took the brazen position that the company from which the client demanded payment had no connection whatsoever to its own company and that it had no obligation to pay the construction payment.
Feeling frustrated and wronged at the risk of not receiving the construction payment that was the reward for his grandfather's hard work, the client sought a specialized attorney with extensive experience in construction payment litigation in order to proceed with the lawsuit on behalf of his elderly grandfather.
The Construction Payment Lawsuit as Reviewed by the Gunsan Law Firm
The Gunsan law firm closely examined the matters related to the construction payment lawsuit on behalf of the client.
What Is a Construction Payment Lawsuit?
A construction payment lawsuit refers to a lawsuit claiming the return of construction payment.
It allows a party to recover the agreed construction payment through a construction payment lawsuit when the work has been completed in accordance with the terms of the contract, but the agreed payment is not made.
If the company that entered into the contract delays payment of the construction payment for various reasons, or delays payment due to an error in the contract, a construction payment lawsuit may be filed.
Main Causes of a Construction Payment Lawsuit
The main causes of construction payment litigation are as follows.
| - Non-payment of construction payment due to the ordering party's lack of funds - Refusal of payment and reduction of the amount by raising issues of construction defects and quality - Differences in interpretation of contract terms due to unclear contents in the contract - Disputes over additional construction costs for design changes and additional work arising during construction |
Procedure of a Construction Payment Lawsuit
A construction payment lawsuit proceeds through a more systematic procedure, and documents and other materials must be prepared carefully at each stage.
| 1. The plaintiff files the complaint |
| 2. Review after the court's examination |
| 3. After confirming the complaint, the complaint is served on the defendant |
| 4. The litigation proceedings formally commence |
| 5. If the defendant does not file an answer, or files an answer admitting the plaintiff's claim, judgment proceeds in accordance with the plaintiff's claim |
| 6. If the defendant files an answer refuting the plaintiff's assertions, oral argument by both sides commences |
| 7. The court proceeds to judgment based on objective evidence |
Examples of Evidence in a Construction Payment Lawsuit
The following are examples of evidentiary materials that may be used in the course of a 🔗construction payment lawsuit.
- Contract
- Construction log
- Site photographs
- Other materials supporting the construction payment claim (tax invoices, account transaction records, etc.)
2. Scope of the Gunsan Law Firm's Assistance
The Gunsan law firm provided assistance as follows so that the client's claim could be granted.
Promptly Reviewing the Extinctive Prescription of the Claim First
Under the Civil Act (Article 163), a construction payment lawsuit is subject to a 3-year short-term extinctive prescription.
If prompt action is not taken before the period within which the construction payment can be recovered expires, one may be left unable to recover the construction payment, so the construction law attorney of the Gunsan law firm promptly reviewed the extinctive prescription period for the client’s case.
Fortunately, the suit could be filed quickly, a few months before the expiration of the extinctive prescription for the claim.
After confirming the extinctive prescription period, the Gunsan law firm promptly drafted the complaint based on the contract, electronic tax invoices, and statement of claim under which the client’s grandfather had entered into the contract, in order to recover the client’s unsettled construction payment.
It also sought payment of the 75 million won that the client’s grandfather had not received, together with delay damages arising from the delayed payment.
Asserting the Unfairness of the Defendant's Argument
The Gunsan law firm collected evidence to refute the defendant's claim that the company with the obligation to pay the price had no connection with the defendant.
The firm argued that the defendant's claim of having no obligation to pay was improper, citing as evidence the fact that, when the client's grandfather performed subcontracted construction work for the defendant, he had also billed the construction payment under the pre-change trade name, as well as the history of the trade name change shown for the defendant's company.
Verification of Records in Collaboration With Daeryun Law Firm's Tax Accountant
In addition, in collaboration with a tax accountant at Law Firm Daeryun, we carefully reviewed five years of the client's grandfather's account-by-account transaction statements, tax invoices, and statements of claims for construction payment.
While examining these materials, we discovered that the client's grandfather had continued to claim construction payment under the name the defendant's company used before changing its trade name, and that the defendant had paid the construction payment to the client through an account under the changed trade name held in the defendant's name.
On this basis, the Gunsan law firm argued that the client's grandfather's claim for construction payment against the defendant was a debt connected to the defendant, and asserted the unfairness of the defendant's argument.
3. What Was the Outcome of the Gunsan Law Firm's Construction Payment Lawsuit Assistance?
🔗Gunsan law firm, and the court, accepting the arguments, upheld the plaintiff's claim and issued the following judgment.
1. The defendant shall pay the plaintiff the full amount of 75 million won.
2. The defendant shall bear the entire litigation costs.
In this way, along with a judgment fully upholding the claim, the defendant came to bear all costs incurred in the litigation.
Construction Payment Lawsuit: Why a Lawyer's Assistance May Be Needed
A construction payment lawsuit is one that should be handled with the assistance of an experienced corporate attorney or an attorney experienced in construction law, because of the complexity of the procedures and the difficulty of carefully examining the extinctive prescription of the claim.
In particular, thoroughly securing evidence and reviewing the relevant statutes when proceeding with the case can shape the direction of the outcome.
The 🔗real estate litigation practice at Daeryun Law Firm has experienced attorneys who handle clients' cases diligently and carefully across various fields, from construction payment lawsuits to return of the purchase price and partition of co-owned property lawsuits.
If you feel at a loss over a construction payment lawsuit, please come to the experienced attorneys of the Gunsan 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.
