Gunsan Law Firm | Assisting in a Construction Payment Lawsuit, 75 Million KRW Granted in Full

The Gunsan law firm closely examined the matters related to the construction payment lawsuit on behalf of the client.

A construction payment lawsuit refers to a lawsuit claiming the return of construction payment.

It allows a party to recover the agreed construction payment through a construction payment lawsuit when the work has been completed in accordance with the terms of the contract, but the agreed payment is not made.

If the company that entered into the contract delays payment of the construction payment for various reasons, or delays payment due to an error in the contract, a construction payment lawsuit may be filed.

The main causes of construction payment litigation are as follows.

A construction payment lawsuit proceeds through a more systematic procedure, and documents and other materials must be prepared carefully at each stage.

The following are examples of evidentiary materials that may be used in the course of a 🔗construction payment lawsuit.

Under the Civil Act (Article 163), a construction payment lawsuit is subject to a 3-year short-term extinctive prescription.

If prompt action is not taken before the period within which the construction payment can be recovered expires, one may be left unable to recover the construction payment, so the construction law attorney of the Gunsan law firm promptly reviewed the extinctive prescription period for the client’s case.

Fortunately, the suit could be filed quickly, a few months before the expiration of the extinctive prescription for the claim.

After confirming the extinctive prescription period, the Gunsan law firm promptly drafted the complaint based on the contract, electronic tax invoices, and statement of claim under which the client’s grandfather had entered into the contract, in order to recover the client’s unsettled construction payment.

It also sought payment of the 75 million won that the client’s grandfather had not received, together with delay damages arising from the delayed payment.

The Gunsan law firm collected evidence to refute the defendant's claim that the company with the obligation to pay the price had no connection with the defendant.

The firm argued that the defendant's claim of having no obligation to pay was improper, citing as evidence the fact that, when the client's grandfather performed subcontracted construction work for the defendant, he had also billed the construction payment under the pre-change trade name, as well as the history of the trade name change shown for the defendant's company.

In addition, in collaboration with a tax accountant at Law Firm Daeryun, we carefully reviewed five years of the client's grandfather's account-by-account transaction statements, tax invoices, and statements of claims for construction payment.

While examining these materials, we discovered that the client's grandfather had continued to claim construction payment under the name the defendant's company used before changing its trade name, and that the defendant had paid the construction payment to the client through an account under the changed trade name held in the defendant's name.

On this basis, the Gunsan law firm argued that the client's grandfather's claim for construction payment against the defendant was a debt connected to the defendant, and asserted the unfairness of the defendant's argument.

A construction payment lawsuit is one that should be handled with the assistance of an experienced corporate attorney or an attorney experienced in construction law, because of the complexity of the procedures and the difficulty of carefully examining the extinctive prescription of the claim.

In particular, thoroughly securing evidence and reviewing the relevant statutes when proceeding with the case can shape the direction of the outcome.

The 🔗real estate litigation practice at Daeryun Law Firm has experienced attorneys who handle clients' cases diligently and carefully across various fields, from construction payment lawsuits to return of the purchase price and partition of co-owned property lawsuits.

If you feel at a loss over a construction payment lawsuit, please come to the experienced attorneys of the Gunsan law firm.