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Lease deposit
Lease depositWinning the case (favorable judgment)

Uijeongbu Legal Consultation | A Client Who Came to Daeryun Recovers a Deposit From a Landlord Who Disappeared Without Returning It

The client who requested an Uijeongbu legal consultation wished to file a lawsuit because the deposit had not been returned even though the lease had ended, and with the assistance of an attorney the client was able to win the case.

1. The Story of the Client Met Through the Uijeongbu Legal Consultation

The client who visited Daeryun Law Firm through an Uijeongbu legal consultation was an ordinary office worker.

Because the distance between the client's family home and workplace was far, the client needed to find a studio apartment to live in near the workplace.

After searching diligently, the client found a studio apartment in a good location, and without hesitation entered into a two-year lease.

The client paid a deposit of approximately 150 million won, moved in, and even obtained a fixed date.

A year and six months passed, and the client was assigned to another region.

Because the client had to move, the client informed the landlord of the plan to vacate without renewing the contract.

The landlord also responded by saying, "Understood."

However, a few months later, the landlord's position reversed completely.

The landlord began to assert that the deposit could not be returned until the next tenant was found.

A few days later, an even more astonishing development occurred.

The landlord notified the client to recover the deposit from a new landlord, stating that ownership of the real estate had been transferred to another person.

However, the new landlord also did not pay the deposit to the client.

Accordingly, the client visited Daeryun Law Firm through an Uijeongbu legal consultation and requested the assistance of the legal team.

2. Relevant Statutes and Precedents Examined Through the Uijeongbu Legal Consultation

■ Relevant Statutes

Housing Lease Protection Act, Article 3

If the deposit has not been returned after the lease has ended, the lessee may apply for an order to register the lease right to the district court, the branch of the district court, or the city or county court having jurisdiction over the location of the leased housing.

Housing Lease Protection Act, Article 4

Even after the lease term has ended, the lease relationship shall be deemed to continue until the lessee has been refunded the deposit.

Civil Act, Article 393 (2)

The obligor shall be liable to compensate for damage arising from special circumstances only where the obligor knew or could have known of such circumstances.

■ Relevant Precedent

In a housing lease with opposing power, even where the lease has terminated by expiration of the term or by agreement of the parties, the lessee is deemed under Article 4 (2) of the Housing Lease Protection Act to remain in the lease relationship until the deposit has been refunded. Therefore, where the leased real estate is transferred in such a state, the transferee, under Article 3 (2) of the same Act, naturally succeeds to the position of lessor in the state in which the lease has terminated. Where the transferee succeeds to the position of lessor, the obligation to return the lease deposit is also transferred as a whole in combination with the ownership of the real estate, so that the transferor's position as lessor and the obligation to return the deposit are extinguished. However, in light of the legislative purpose of the lease protection statute, which is to protect the lessee, where the lessee does not wish for the lessor's position to be succeeded, it is reasonable to find that the lessee may be released from the binding effect of the succeeded lease relationship by raising an objection within a reasonable period from the time the lessee becomes aware of the fact that the leased housing has been transferred. In such a case, the transferor's obligation to return the deposit to the lessee shall be found not to be extinguished (see Supreme Court Decision 2001Da64615, decided September 4, 2002, and others)

3. The Strategy for Winning the Case Established Through the Uijeongbu Legal Consultation

The attorneys of Daeryun Law Firm who conducted the Uijeongbu legal consultation formed a dedicated team and established a strategy for winning the case so that they could recover the deposit as quickly as possible.

Uijeongbu Legal Consultation Strategy 1: "The Termination of the Contract Was Notified With Ample Lead Time"

The client expressed the intention to terminate the contract approximately four months before the lease was to end.

The landlord had thus secured ample time to return the client's deposit.

However, although the landlord had given an affirmative answer of "Understood" when first informed of the intention to terminate the contract, the landlord did not return the deposit within the deadline.

Uijeongbu Legal Consultation Strategy 2: "The Landlord's Conduct Was Suspicious"

The landlord named as the defendant in this case also held other properties in the same building.

However, as confirmed through the Uijeongbu legal consultation, it was found that the landlord had likewise not returned the lease deposits for five other units.

In addition, it was revealed that for the other units in which no return dispute had yet arisen, the landlord had set up a mortgage to secure a maximum amount reaching 3.5 billion won.

This can be viewed as the landlord having devised a meticulous plan to avoid the obligation to return the lease deposits.

The attorneys of Daeryun Law Firm who conducted the Uijeongbu legal consultation referred to these circumstances and emphasized that this constituted an unlawful act of obtaining lease deposits by deception.

Uijeongbu Legal Consultation Strategy 3: "The New Landlord Also Became Unreachable, Raising Suspicion of Collusion"

The landlord, who failed to return the deposit within the set period, transferred the property to another landlord.

The problem was that the newly designated landlord also could not be reached by the client at all.

It was reasonable to view this as the new landlord having participated in the unlawful act by providing a name for the existing landlord's unlawful conduct, while having no responsible assets at all.

The attorneys of Daeryun Law Firm who completed the Uijeongbu legal consultation argued, on the basis of these points, that the two landlords should jointly return the deposit and compensate for the related damage.

4. As a Result of the Assistance Through the Uijeongbu Legal Consultation, a "Judgment for the Plaintiff"

As a result of the assistance provided to the client by the attorneys of Daeryun Law Firm through the Uijeongbu legal consultation, the court rendered a judgment for the plaintiff.

The court decided that the existing landlord and the new landlord should jointly return the deposit to the client.

If You Have Not Recovered Your Deposit Even After the Contract Term Has Ended?

There are not a few landlords who assert that they cannot return the deposit because no new tenant has been found, even though the real estate contract has expired.

For a tenant who must immediately find a new home, the situation of being unable to recover a deposit ranging from tens of millions to hundreds of millions of won can be very distressing.

Although the harm is considerable, many people do not know where or how to begin raising the issue in real estate matters.

At Daeryun Law Firm, attorneys with extensive experience in real estate-related litigation find a solution suited to the client's situation.

If you are troubled by a deposit return matter, you are welcome to contact Daeryun Law Firm, where an Uijeongbu legal consultation is available.

의정부법률상담 | 대륜 찾은 의뢰인, 보증금 안 주고 잠적한 임대인에게 보증금 돌려받아

This content is based on actual cases handled by Daeryun Law LLC and has been partially adapted. All copyrights belong to Daeryun Law LLC.
Unauthorized reproduction, copying or distribution may result in legal action under applicable laws.

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