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Deals & Cases

Confirmation of invalidity of the establishment of a redevelopment association

Construction Specialist Attorney Assistance | Dismissal of a Lawsuit to Void the Establishment of a Redevelopment Association, "Winning the Case"

With the assistance of a construction attorney, Redevelopment Association A faced a lawsuit seeking confirmation of the invalidity of its establishment, but was able to maintain the validity of the project implementation plan and prevent the suspension of the project’s progress.

CONTENTS
  • 1. How the Client Came to Request Assistance from the Construction Specialist Attorney
    • - The Client Subject to a Lawsuit to Void the Establishment of a Redevelopment Association
  • 2. The Issues in This Case as Seen by the Construction Specialist Attorney
    • - Conditions for Authorization to Establish an Association
  • 3. Scope of the Construction Specialist Attorney's Assistance
    • - Recognition of the Validity of the Establishment Consent Form
    • - Interpretation of the Failure to Meet the Statutory Consent Rate
    • - Standard for Calculating the Number of Landowners and Others
  • 4. Result of the Construction Specialist Attorney's Assistance, "Winning the Case"
    • - If a Dispute Related to Redevelopment or Reconstruction Has Arisen

1. How the Client Came to Request Assistance from the Construction Specialist Attorney

The client who came to the construction attorney requested legal assistance in order to respond to a lawsuit, filed against the client by a redevelopment association member, seeking confirmation of the invalidity of the establishment of the redevelopment association.

The Client Subject to a Lawsuit to Void the Establishment of a Redevelopment Association

The client who sought out the construction law attorney was the representative of a redevelopment association, and the association was carrying out a redevelopment project.

In the early stage of the project, after obtaining approval of the association's establishment, it had completed the selection of the contractor and the preparation of the management and disposal plan, and had begun the demolition and relocation procedures.

However, some landowners and others claimed that there were defects in some of the entries in the association establishment consent forms and that the legally required consent rate had not been met, and filed a lawsuit seeking confirmation that the establishment of the redevelopment association was void.

In some consent forms, required entries had been omitted or supplemented after the fact, and on that basis they challenged the legitimacy of the project.

As a result, the project encountered setbacks, and the client requested the assistance of the construction law attorney in order to respond legally.

Client sued for confirmation that the establishment of a redevelopment association was void

2. The Issues in This Case as Seen by the Construction Specialist Attorney

The main issues in this case were as follows.

① Validity of the association establishment consent form
Whether the validity of an association establishment consent form can be recognized where some required entries are omitted or where a third party completed some items.

This is a problem that often arises in practice, and in such cases the standard for judging the validity of the consent form was important.

② Number of landowners and others
Where special types of real estate such as state-owned land, publicly owned land, and land with surface rights established are included, how to reflect these in the number of landowners and others was the issue.

These problems require a comprehensive interpretation of the Act on the Maintenance and Improvement of Urban Areas and related precedents, and the work of accurately organizing and substantiating this was indispensable.

Conditions for Authorization to Establish an Association

Article 35 of the Act on the Maintenance and Improvement of Urban Areas sets out the legal requirements for establishing a redevelopment association.

To establish an association, the following conditions must be met.

1. Consent requirement

To establish an association, the consent of the landowners and others is required.

This consent must secure at least three-fourths of all landowners and others and at least one-half of the land area.

Through this, authorization for establishment of the association can be obtained.

2. Submission of required documents

The documents for establishing an association must include the articles of association, materials relating to maintenance project costs, and other documents prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, as well as documents required under municipal and provincial ordinances, and authorization from the mayor, the head of the county, or others must be obtained after the maintenance zone is designated and announced.

※ Requirements for changes after establishment

If a change to the association is needed after establishment, the consent of at least two-thirds of the association members must be obtained at the general meeting, and authorization from the mayor, the head of the county, or others must be obtained for the changed matters.

However, minor matters may be changed after reporting to the mayor, the head of the county, or others without a resolution of the general meeting.

If the legal requirements are not met, the establishment of the association itself may be invalid, and there is a risk that the project will be suspended as a result, so all procedures must be thoroughly observed.

3. Scope of the Construction Specialist Attorney's Assistance

Daeryun Construction Attorney's Assistance Case Study

The construction attorney focused on important issues such as recognition of the effect of the consent forms for establishment and interpretation of the failure to meet the statutory consent rate, providing assistance that secured legal stability and emphasized the legitimacy of the association.

Through this, the firm clarified the interpretation of the legal effect of the consent forms and the difference in the consent rate, and, focusing on minimizing the risk of the project being void, provided the following assistance.

Recognition of the Validity of the Establishment Consent Form

The construction specialist attorney emphasized that, even where some of the entries in the establishment consent form were left blank, the relevant parts were not mandatory entries or could be supplemented afterward.

The attorney argued that, although some items in the establishment consent form submitted to the court were blank, these were not legally important matters, so there was no problem with the validity of the consent form.

Interpretation of the Failure to Meet the Statutory Consent Rate

The construction specialist attorney argued that even if the statutory consent rate fell short by a narrow margin, the resulting defect was not clear.

The attorney explained that, legally, a shortfall in the consent rate does not render the entire project void, and that where the difference in the consent rate is minor, a legal procedure exists to resolve it.

Standard for Calculating the Number of Landowners and Others

The construction specialist attorney closely analyzed the relevant statutes and precedents to prove that the standard for the number of landowners and similar persons calculated by the association was valid.

In particular, based on the legal interpretation regarding state-owned land or land on which a superficies right was established, it was emphasized that each owner should be regarded as a single owner.

▶ Supreme Court Decision 2012Du23242, decided March 20, 2015

Considering comprehensively that where one person owns both the land and the building on the land, it accords with the purport of the above provision to count the landowner and similar person as one with respect to the land and the building on the land, regardless of whether a superficies right has been established over the land, it is reasonable, absent special circumstances, that even if a superficies right is established over the land among land and a building on the land owned by the same person, the superficies holder cannot be treated the same as a co-owner of the land when calculating the number of landowners and similar persons, and that one landowner and similar person is deemed to exist with respect to the land and the building on the land.

4. Result of the Construction Specialist Attorney's Assistance, "Winning the Case"

As a result of the construction specialist attorney's active assistance, the court's determination on whether the statutory consent rate related to the association establishment authorization had been met was in the client's favor.

Accordingly, the effect of the association establishment authorization and the project implementation plan was maintained, and a situation in which the progress of the project would be halted was prevented.

If a Dispute Related to Redevelopment or Reconstruction Has Arisen

Favorable judgment resulting from assistance by a Daeryun construction attorney

Legal disputes that may arise in large-scale projects such as redevelopment projects are complex, and a single mistake or difference in interpretation can render an entire project void.

For this reason, professional legal assistance from a construction attorney is crucial.

Based on a deep understanding of redevelopment, reconstruction, and urban renewal projects, this firm assists clients with strategies suited to the circumstances.

It also analyzes legal risks from the early stages of a project and anticipates and prepares responses to problems that may arise in matters such as drafting contracts and collecting consent forms.

If a legal dispute arises in connection with redevelopment or reconstruction, you may at any time 🔗consult a construction attorney and develop a response strategy together.

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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.

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