Construction Dispute | Case Recovering the Full 200 Million Won in Construction Payment From a Contractor That Failed to Perform

This is the story of a client who requested help with a construction dispute.

The client was the owner of a building undergoing remodeling and concluded a contract with the defendant for the remodeling and extension work on the building.

At the time the contract was concluded, oral and written agreements were mixed, and the client successively remitted to the defendant a down payment of 100 million won before the work began and another 100 million won at the defendant’s request for additional material costs, for a total of 200 million won.

However, even after the agreed start date had passed, the defendant did not proceed with the work at all and did not commence any substantive construction other than simple demolition work.

The defendant kept only delaying the construction period, and because a large sum of 200 million won had been put in, the client continued to grant extensions of the deadline.

Then, upon learning that the paid amount could be recovered through a lawsuit for the return of the construction payment, the client sought out a specialized attorney with experience in numerous construction dispute cases and requested help from Daeryun LLC.

Specialized attorneys with experience in numerous construction dispute, construction payment, and real estate cases formed a TF for the client and undertook the response.

To resolve the construction dispute, a lawsuit for return of the construction payment was promptly filed.

Specialized attorneys with extensive experience in construction payment lawsuits structured the claim of the lawsuit on the basis of the following facts and legal principles.

As a result of the construction dispute, the court rendered a judgment ordering that the client recover the full 200 million won in construction payment that the client had claimed.

A construction payment lawsuit may appear to be a simple matter of payment, but in reality it involves multilayered legal issues, including the existence of the contract and the lawfulness of its rescission, proof of the facts regarding performance, analysis of the nature of the payment (down payment, interim payment, advance payment, and so on), and the method of calculating delay interest.

In particular, where the contract is a mix of oral and written terms, proving the contents of the contract can be difficult, and the assessment of the progress of the construction also requires legal evaluation together with technical fact-finding.

To accurately organize such complex procedures and legal principles and present them persuasively to the court, the legal advisory and litigation strategy of a specialist attorney are crucial.

In this case as well, even though the client had sufficient evidence, Daeryun's assistance played a decisive role in precisely constructing the legal reasoning and presenting it in a structure favorable to the client in the litigation.

At Daeryun Law Firm, specialist attorneys who have handled numerous construction payment lawsuits provide one-stop legal response services, from grasping the facts to conducting the firm's own evidence collection through collaboration with the Evidence Investigation Center.