Gangneung Attorney Assistance | Representing a Client Caught in a Premium Dispute and Reducing the Claimed Amount

A tenant whose commercial lease has ended may recover a key-money premium from a new tenant by assessing the tangible and intangible value of the business, such as the shop fixtures, the goodwill of the business, and the location of the shop.

Because the premium assessment may also include the transfer of business know-how, if there was an intent to deceive the new tenant during the transfer of the business, civil liability such as damages can arise.

For example, if a person inflates or falsely reports figures such as sales records, foot traffic, or business clients and receives an excessive premium, damages arising from such an intent to deceive can be established.

As in the client's case, if a person honestly assessed the premium and recovered only that amount without any intent to deceive, the absence of any intent to deceive must be proven through a process of legal rebuttal.

This kind of premium litigation requires careful review of the complex legal grounds relating to the premium and calls for specialized knowledge in the relevant area, so the assistance of an attorney is important.

In preparing the café, the client had actually invested more in interior work, equipment, and the like than the amount of the premium, and records of all of this remained.

The attorney submitted the client's investment records, including interior work, as evidence and emphasized that the premium received by the client was neither false nor excessive.

Even before taking over the store, the plaintiff had come to the client's café, shown interest in starting a café, and asked whether the client had any intention of handing it over, thus first signaling an intention to take it over.

The client, feeling sorry for the plaintiff, who had been defrauded, transferred it at a low price.

The attorney emphasized that the client had no intent to deceive and that nothing had been falsely inflated in the process of transferring this business.

This was the account of a client who handed over a business to an acquaintance in difficult circumstances, only to be sued for damages in return.

Because the assessment of a key-money premium is driven more by individual judgment than by clear and objective grounds, the process of proof can be complex if litigation arises.

In particular, in a damages lawsuit arising from a premium, the issues can become even more varied, because the fact that loss occurred and whether one caused that loss must be proven or rebutted as a matter of law.

For this reason, in this kind of 🔗lease dispute, receiving help from an attorney with extensive case experience is more important than anything.

If you need a consultation, please seek advice through a 🔗legal consultation booking.