CONTENTS
- 1. The Client Who Came to Daeryun for the Defense of an Entrusted Management Lawsuit
- 2. Defense of the Entrusted Management Lawsuit, the Assistance of Daeryun Law Firm
- 3. The Client Who Defended the Entrusted Management Lawsuit With the Assistance of Daeryun Law Firm
1. The Client Who Came to Daeryun for the Defense of an Entrusted Management Lawsuit
The client who received the lawsuit for a provisional injunction prohibiting interference with the management duties was the representative of a management body, and had entrusted the management duties to a new management company, N.
A considerable amount of time had passed since sales began, and most of the units had been occupied. Reflecting the requests of the residents, the management company was changed from management company D, which the developer had designated, to the new management company N.
As a result, management company D, which had been handling the existing management duties, reportedly used a lawsuit for a provisional injunction prohibiting interference with the management duties to block the entrustment of the management duties to management company N.
The client therefore came to the Daeryun Law Firm Construction and Real Estate Group for the defense of the lawsuit for a provisional injunction prohibiting interference with the management duties.
2. Defense of the Entrusted Management Lawsuit, the Assistance of Daeryun Law Firm
The Daeryun Law Firm Construction and Real Estate Group closely examined the arguments raised by the opposing party in the entrusted management lawsuit and prepared a defense based on the following arguments.
▶ Because the developer has the authority to manage only until the management body begins its management, the management authority of the developer and of management company D, which the developer designated, is merely temporary.
▶ Management company D argues that the term of its management contract with the developer remains in effect. However, this is merely a management mandate contract that the developer concluded on behalf of the management body, so that mandate contract may be terminated at any time, and the management body terminated the mandate contract with management company D.
▶ Even if there is a clause in the sales contract between the developer and the purchasers (residents) providing that the developer may perform management duties until a certain proportion of units are occupied, recognizing that provision could result in the developer evading the Act on the Ownership and Management of Condominium Buildings through the sales contract, so the effect of that clause cannot be recognized.
Reviewing the Statutes Related to the Entrusted Management Lawsuit With Daeryun
- Act on the Ownership and Management of Condominium Buildings, Article 9-3 (Management Obligations of the Seller, etc.)
(1) The seller shall, until the manager appointed under Article 24 (3) begins to perform duties, manage the building, the site, and the appurtenant facilities with the care of a good manager.
(2) The seller shall, with reference to the standard rules under Article 28 (4) and the regional standard rules under the same Article paragraph (5), establish by notarial deed something equivalent to the rules and provide it to the prospective purchaser before concluding the sales contract.
(3) When one-half or more of the prospective purchasers have completed transfer registration, the seller shall notify the sectional owners, as prescribed by Presidential Decree, to convene a management body meeting (referring to a meeting of the management body under Article 23; the same shall apply hereinafter) for the establishment of rules and the appointment of a manager. In this case, the seller shall state that the management body meeting must be convened within three months from the date of receipt of the notice.
(4) Where the sectional owners do not convene a management body meeting within three months from the date of receipt of the notice under paragraph (3), the seller shall convene a management body meeting without delay.
- Civil Act, Article 689 (Freedom of Mutual Termination of Mandate)
(1) A mandate contract may be terminated by either party at any time.
(2) Where one party terminates the contract at a time unfavorable to the other party without an unavoidable reason, that party shall compensate for the resulting damage.
3. The Client Who Defended the Entrusted Management Lawsuit With the Assistance of Daeryun Law Firm
The court accepted all of the arguments of the Daeryun Law Firm Construction and Real Estate Group and dismissed the lawsuit filed by management company D with the following judgment.
“The management duties of management company D continue only temporarily, until the management body is actually organized and begins its self-governing management duties. Because the management body has begun its self-governing management duties, management company D no longer has any authority over the management duties.”
With the assistance of the Daeryun Law Firm Construction and Real Estate Group, the client was able to defend the entrusted management lawsuit.
Daeryun Law Firm commits to serving as a legal partner that works diligently to realize the client's full interests and protect the client's rights.
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