The group NewJeans and the entertainment agency Adore, which are in a dispute over exclusive contracts, clashed again in court.
On the morning of the 4th, at 11:10 AM, the 41st Civil Division of the Seoul Central District Court (Chief Judge Jeong Hoe-il) held the second hearing for the lawsuit filed by Adore to confirm the validity of the exclusive contracts with the members of NewJeans. The members of NewJeans did not attend.
On this day, the court stated, "The plaintiff (Adore) claimed in their preparatory document that they made every effort to ensure that the defendant (NewJeans) could continue their entertainment activities even after the change in management. They also argued that the reasons for the termination of the exclusive contract claimed by the defendant keep changing, suggesting that they are looking for reasons after having already terminated the contract."
It continued, "On the other hand, the defendant's side argues that the failure to implement protective measures for the defendant after the takeover of management by Hive's executives is a reason for termination. They believe that the management system collapsed when the plaintiff ousted Min Hee-jin, and since they did not respond to the defendant's requests for correction, the right to terminate the exclusive contract arose."
The court also mentioned the request for clarification from NewJeans. A request for clarification means asking the opposing party to disclose facts or submit evidence to prove their claims.
The court partially accepted NewJeans' request for clarification and asked Adore to clarify whether there were discussions about the impact of Min Hee-jin's dismissal on the activities of the defendants and whether the board of directors actively held meetings regarding protective measures before the defendants made their requests.
The two sides clashed over the request for document submission. Adore requested the submission of documents related to the ongoing case between Min Hee-jin and Source Music at the Western District Court.
NewJeans argued, "There are materials among the case documents that could be considered illegally collected evidence due to violations of the Information and Communications Network Act," while Adore countered, "It is a matter for the Western District Court to decide, but the materials were obtained through an audit process. The issue is with computer files, but since the provider agreed and the computer is company property, it cannot be deemed illegal."
The court pointed out, "Even if the records come from the Western District Court, they do not automatically become evidence. It is the plaintiff's responsibility to find and present the necessary evidence from them," and stated that it would grant the request for document submission.
On this day, the court asked both sides once again if there was a possibility of settlement and mediation, following the first hearing held in March.
The court said, "Do both sides have no intention of reaching a settlement? Last time, the defendant's side said they had no intention of settling, but I feel it's a pity, so I would like to encourage a settlement."
In response, the defendant's side said, "We will have to discuss it again with our client, but the trust relationship has already been irreparably broken. We believe we have crossed a river that cannot be crossed back." The plaintiff's side replied, "If the court reaches a conclusion, I believe a settlement can be easily reached."
The third hearing is scheduled for July 24th.
NewJeans and Adore have been in a dispute over exclusive contracts since November of last year. At that time, NewJeans held an emergency press conference to notify Adore of the termination of their exclusive contract and announced that they would begin independent activities under the new name NJZ.
In response, Adore stated, "Claiming that trust has been unilaterally broken does not constitute a reason for termination," and on December 3rd of last year, filed a lawsuit in court to confirm the validity of the exclusive contract with NewJeans. On January 6th, they also filed for a provisional injunction to maintain their status as an agency and to prohibit the signing of advertising contracts.
The court accepted Adore's request for a provisional injunction on March 21st, ruling that NewJeans should not engage in independent activities.
Despite this, the members performed on stage at a concert in Hong Kong under the name NJZ, and Adore retaliated with an indirect enforcement request.
Indirect enforcement is a method of civil execution that orders the debtor to pay a certain amount based on the delayed period if they do not comply with the court's decision. It is a way to psychologically compel the debtor to fulfill their obligations.
On May 29th, the court accepted the indirect enforcement request, ruling that NewJeans should not engage in entertainment activities without Adore's prior approval or consent until the first instance ruling on the exclusive contract is made. It also decided that if they violated this obligation and engaged in independent activities, each member would have to pay Adore 1 billion won for each violation.
[Lee Da-kyum, Star Today Reporter]
