So, I'm sure that even someone who's not a Cassie would be aware of the court case going between TVXQ members Jaejoong, Yoochun, Junsu and SM entertainment. Well the results are out and the court sides with TVXQ. Below are the files stating the reasons, please click to enlarge ^^ Summaries are provided under the pictures.
Summary of courts judgement and reasons.
This will be knowledge to everyone and you can read the reasons given by the court as why they side the 3 members.
Summary of the Judgment of JaeChunSu's Petition for Preliminary Injunction to Void Exclusive Contract
What JaeChunSu wants - their exclusive contract declared as null and void [i.e. ineffective]
Current stage of proceedings – Preliminary Stage, still needs to wait for actual trial
What was granted – temporary suspension of the exclusive contract + JaeChunSu can engage in independent activities + SM cannot compel JaeChunSu to participate in entertainment related activities (otherwise it has to pay $10,000,000 KRW per violation)
Why - “basic relationship of trust that is the foundation ...has already crumbled” (3B) and if the actual trial was prolonged, JaeChunSu would basically be receiving little or no income if they were not allowed to pursue independent activities
Why the rest of was not allowed – because possiblitiy that TVXQ may continue as a group + ratio of distribution of revenue are difficult to calculate (3C)
On the issue of 1,000,000,000 KRW – the reason why the Court needs JaeChunSu to pay a deposit (or a bond insurance) is because in the case where SM wins, the court has to ensure that they have enough money to compensate SM (it is a common practice to request the party with a weaker financial position to provide security)
VERY VERY Important points raised by the Court in its reasoning –
On negotiating powers when accepting the contract – ONE SIDED
o 2B1 – The Court rejected SM’s claim that JaeChunSu has equal or superior negotiating powers in accepting the contract.
o 2B5 – “an extremely one-sided contract”
On the 13 years contract period – EXCESSIVE
o 2B2 – the earliest date the contract ends is 13th January, 2017 excluding the conscription period. On the length of the contract, the court commented it is the longest amongst all provided examples (apart from Boa and Yoo Young Jin’s 15 years)
On the amount of damages JaeChunSu has to pay if they terminate the contract – SLAVE CONTRACT
o 2B3 – court hints that it is unfair as SM can terminate the contract without itself paying damages
o 2B4 – court concludes that the provisions on damages goes more than the original intention (of compensating the injured party i.e SM)
and instead “absolutely blocks the Petitioners [Jaechunsu] from exiting the Contract for the sole purpose of maximizing the profits of the Respondent [SM].”
“ By doing so the provisions act as a device to enslave the Petitioners to the Respondent for the abovementioned contractual period of 13 or more years and the court finds it difficult to sanction such them as they are” [seems like the court cannot help but agrees with the lay term ‘slave contract]
o 2B5 – court believes that such contracts does nothing but to solidify the monopoly of large entertainment companies in Korea
Conclusion –
o The contract is “contrary to the public morals and social policy, or otherwise void because it exceeds what is rational for the length of a contractual term”
o Unless SM modifies almost all of the important parts of the contract, including the contractual period and clause on damages in case of termination, this contract is likely to be void because it imposes on JaeChunsu an “unjust burden”
Afternote –
o After the entering of the original contract (you can find the dates under 1C as listed in the table), there were 5 subsequent supplementary agreements. The last agreement is dated 6th February, 2009. [note from writer – this is the point of time where JaeChunSu claims they have not been receiving income therafter. It is unknown what amendment have been made which brought forward such claim]
Credits: pinkwings @ OneTVXQ.com
Then we finally have a word from the company that seems to be tangled in this mess, the China beauty products company that TVXQ signed a contract with, CreBeau.
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When the TVXQ / DBSK / Tohoshinki controversy first began, the three members and their lawyers clearly stated that the three members’ investments in the CreBeau cosmetics line did not have any relevance to the court case. The core of the controversy was the legal issues of the slave contract. In SM Entertainment's opening statement, they stated that the lawsuit was because of the cosmetics issue.
To clear up the confusion, Kang Suk Won, the President of the Korean branch of CreBeau (Wishop Plus) was interviewed. Kang has already sued SME’s CEO Kim Young Min for slander to the Seoul Central Court on October 4th, 2009.
Kang said, “Although this case is obviously to fight the unfair profit splits and the conflict between the members and SME, SME is trying to push the blame onto CreBeau.”
Kang went on to reveal that the three members have only invested approximately 70,000 dollars, 60,000 dollars, and 40,000 dollars respectively. This amount, he said, was not enough to earn the three members rights to ownership of the business, let alone a big part of the profit.
Kang said, “In May 2009, some SME representatives visited the original branch of CreBeau Cosmetics in China twice. They determined that the members were not going against contract terms in any way, and now SME is distorting the true reason behind the case and putting out ridiculous claims... SME said that the whole lawsuit was due to the members’ wanting to continue a business that went against contract terms. This has no credibility in that SME has already approved of the investments previously. The members wouldn’t risk all the things that they gained as TVXQ by creating a conflict with their company over insignificant investments. It was a private investment, and the three have no ownership over the business in any way. They’re merely investors, nothing less, nothing more. What does this have to do with the lawsuit, and why is SME attempting to connect the two together?”
Kang went on to say that SME’s actions have brought about significant harm to the business not only in Korea, but all over Asia, including China, Japan, Hong Kong, Taiwan, Vietnam, and even the United States. For the employees and CEOs all over the world, CreBeau is their sole income. SME should have considered the impact its blames would bring to the business and the people involved in it.
“If SME’s company and its profits are so important that they are willing to harm others for it, then SME should recognize that it is the same for others.” Kang went on to say that “If SME does not stop distorting the truth and doesn’t apologize for the harms it brought upon CreBeau, I will not hesitate to reveal the details of SME’s absurd act to the public and to the court.”
Source: Daum Media
Credit: Allkpop
Shared by: DBSKnights
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