1. Case summary
A redevelopment association formed to carry out a redevelopment project, which is the largest redevelopment project in the Korean history worth more than two trillion Korean won for the construction of 5,816 units, made a resolution of a management plan at a general meeting of 바카라 카지노.
The 바카라 카지노 of the redevelopment association, who have interest in commercial units, filed an application for an interim injunction to suspend the effect of the resolution and a suit to invalidate the resolution against the association, asserting that the resolution regarding the commercial units in the management plan had a material and manifest error.
2. Our role
Representing the members having interest in commercial units, attorneys of 바카라 카지노 (namely, Wonkeun Lee, Bongsun Lee, Yongwoo Kim and Hoseok Seo) made the case that the part of the management plan regarding commercial units had illegality because it was not sufficiently concrete and there was a significant difference between the price for retail facilities offered to the general public and the price for commercial facilities offered to the members. In particular, we emphasized that the significant difference in the prices would impose a significant infringement on the property right of the entire members of the association beyond the unfair level comparing to the members of the association having interest in residential units.
The association asserted that there was no problem with the price set for the commercial units since the assignment of incidental facilities, such as commercial units, and welfare facilities had special characteristics and the price was obtained by calculating an arithmetic mean of values assessed by appraisal firms.
3. Summary of the decision
On the basis of our arguments, the court expressed concerns that there was a significant difference between the prices for commercial facilities assigned to the 바카라 카지노 and retail facilities assigned to the general public, that the association failed to specifically clarify economic reasonableness or fairness of the significant difference or the significant increase in the estimated unit price, and that if a large number of specialized sophisticated businesses did business in the retail facilities, benefits would be generally given to people residing in residential units but the 바카라 카지노 who were assigned and purchased commercial or retail facilities would bear a burden caused from competition with specialized sophisticated businesses, and determined to suspend the effect of the resolution regarding the commercial units until the 30th day from the date on which a judgement of the case regarding the invalidation of the resolution would be rendered.
4. Implications
There have been many urban improvement projects in which the interests of 바카라 카지노 having interest in commercial units who are minorities comparing to 바카라 카지노 having interest in residential units are not properly reflected in the management plan, which have frequently caused significant conflicts among the 바카라 카지노. There were continued conflicts over the project to reconstruct commercial facilities even after construction was resumed in the Dunchon Jugong Reconstruction Complex (i.e., Olympic Park Foreon). In a project to reconstruct apartment units (i.e., Raemian One Bailey), the effect of a resolution made by an association to sell the entire commercial units was suspended, and the president’s authority to execute affairs was suspended.
This case is meaningful in that the court directly pointed out the issue of fairness which could be caused between residents in residential units and 바카라 카지노 having interest in commercial facilities when specialized sophisticated businesses did business in the commercial facilities. This case also suggests that failure to properly reflect the interests of 바카라 카지노 having interest in commercial facilities in a management plan would have a bad effect on profitability of the entire project.
The association filed an immediate appeal to the decision, and the proceeding to deal with the appeal to the interim injunction is pending. We will continue to faithfully respond to the appeal and a trial on the merits.
□ Attorneys in charge : Lee Won-Keun, Lee Bong-sun, Kim Yong-Woo, Seo Ho-Seok
