[Cheonan Attorney Unjust Enrichment Favorable Judgment Case] With the Assistance of a Cheonan Attorney, the Client Recovers the Full Regional Housing Association Contribution

The client who requested the Cheonan attorney's assistance paid approximately 40 million won as a contribution at the time of joining the association.

At the time of entering into the membership agreement, the client received from the counterparty a guarantee letter stating that, if the project fell through, the entire amount paid by the member would be fully refunded.

However, there had been no progress to date, and the counterparty continued only to demand additional contributions, so the client believed that the prospects for the project were uncertain. In substance, the project had effectively fallen through.

For this reason, the client declined to pay any additional contribution and made a request for a refund of the contributions already paid.

The counterparty, however, refused, asserting that it was still continuing the association's project and therefore had no obligation under the contract to return the contributions paid, and the client consequently requested an attorney's assistance in order to file this lawsuit.

• Unjust enrichment refers to a gain obtained through an improper method that violates the law.

• Civil Act Article 741 (Substance of Unjust Enrichment)

A person who obtains a benefit from another person's property or services without a legal cause, and thereby causes loss to the other person, shall return that benefit.

In this case, the contribution that the counterparty received from the client constitutes ‘unjust enrichment’ and must be returned.

The Cheonan attorney argued that the counterparty had actively solicited membership by promoting phrases such as a guarantee program and a full refund of the amount paid, thereby inducing the client to join the association.

The attorney argued that the client, who trusted these statements, entered into the membership agreement and prepared and received a guarantee letter.

The attorney argued that the counterparty had, in fact, failed even to apply to the competent authority for approval of the establishment of the association at the regional housing association promotion committee stage, that the project continued to make poor progress, and that the counterparty had continued to demand additional contributions from the client.

The attorney further proved that, when the client expressed an intention to refuse, the counterparty went so far as to exclude the client from membership in the association.

The attorney argued that the counterparty had dissolved the association on grounds such as conflict among members and delays in the project, and that the client had accordingly entered into an agreement for the dissolution of the association and settlement, thereby reaching a settlement.

The court found that the client would not have entered into the membership agreement in this case without the return guarantee provision, and it therefore treated the membership agreement as wholly void, regarded the contribution as unjust enrichment, and held that the entire amount must be returned.

Through a complete favorable judgment for the client, the client, with the assistance of Daeryun, was able to recover the entire contribution from the association without difficulty.

In this case, even though the available materials were not sufficient, the written submissions prepared on the basis of citations to similar cases and a review of the relevant provisions served as a foundation that led to a favorable judgment.

If a counterparty has committed an unlawful act and obtained money through deception, that money may be recovered through litigation. The outcome of a civil case often depends on proving the causal relationship.

For careful identification of the facts through consultation and prompt handling of the case, you may visit the Daeryun Law Firm Cheonan office for a consultation.