1. Case Overview
a. Party represented by Barun Law: Defendant (the project developer of a solar power generation business)
b. Background:
Following the execution of a construction contract between the project developer and the contractor in connection with a solar power generation project, the installed capacity of the completed power plant, the Renewable Energy Certificate (무료 바카라 게임) weighting factor, and the contractual unit price were all finalized at levels lower than those projected at the time of the loan agreement. Consequently, the construction price was paid in a reduced amount, and the contractor filed a claim seeking payment of the unpaid construction cost.
c. Details of the litigation:
The plaintiff (contractor) argued that it had entered into the construction contract without knowledge of the specific content and calculation method of the financial model underlying the loan agreement; therefore, no valid agreement existed regarding an adjustment of the construction price based on the financial model. The plaintiff also asserted that the contract price under the 무료 바카라 게임 sales agreement had been determined prior to the loan agreement and thus could not serve as a basis for adjusting the construction price. The defendant (project developer), on the other hand, contended that the construction contract expressly provided for an adjustment of the construction price based on the financial model in the event that the installed capacity, 무료 바카라 게임 weighting factor, or contract price was lower than projected under the financial model at the time of the loan agreement, and since such factors did indeed decline, the defendant had fully satisfied its payment obligations.
2. Judgment
- Seoul Central District Court, Decision 2023Gadan5141869, dated January 14, 2025
- Seoul High Court Decision 2025Na205609, dated August 14, 2025
3. Grounds for the Judgment
The courts held that the loan agreement and the construction contract were closely interrelated and that the parties had agreed to calculate and adjust the construction price based on the financial model. Given that the installed capacity, 무료 바카라 게임 weighting factor, and contract price confirmed after completion were all lower than projected, the courts found that the conditions for adjusting the construction price under the contract had been satisfied.
4. Our Arguments and Role
We emphasized that in solar power generation projects, the calculation of the construction price is typically adjusted and finalized based on the financial model, which reflects the project financing structure grounded in future power generation revenues (including 무료 바카라 게임 sales proceeds). We further argued that, since the actual installed capacity, 무료 바카라 게임 weighting factor, and contract price of the completed facility were lower than those anticipated in the financial model, the construction price should accordingly be reduced based on that model.
5. Significance of the Judgment
Ordinarily, adjustments to construction prices are determined based on objective market value through appraisal. However, this case is significant in that the court recognized a construction price adjustment based on the financial model, reflecting the distinctive nature of solar power projects and their project financing structures. This judgment is expected to serve as a meaningful precedent for future disputes involving renewable energy and project financing projects, particularly where coordination between construction contracts and loan agreements is at issue.
