ADOR’s Legal Action in Light of NewJeans’ Unique No-Lawsuit Approach

NewJeans’ Contract Termination: Legal Insights from Cho Myeon-sik

On October 30, Cho Myeon-sik, the leading counsel at Gate Law Firm, provided key insights on social media following NewJeans’ emergency press conference. The group announced their decision to terminate their contract with ADOR, alleging breaches of contract.

Understanding the Termination Process

According to Cho, NewJeans adhered to appropriate contractual protocols by requesting that ADOR rectify its violations within a stipulated grace period. After the deadline passed without compliance, NewJeans notified ADOR of the contract’s termination. Notably, Cho pointed out that they opted against pursuing legal actions such as injunctions immediately.

“A breach does not inherently lead to contract termination,” Cho explained. “A correction period is essential, and if the issues remain unresolved, legal grounds for termination are established.” This legal framework underlines the importance of following agreed-upon processes in contractual disputes.

Prospects for Legal Action

During his commentary, Cho emphasized that NewJeans exercised their legal right to terminate their contract. He suggested that the group potentially expects ADOR to respond by issuing its own termination notice while seeking damages. However, Cho cast doubt on the likelihood of heavy financial repercussions, stating, “Even if ADOR seeks exorbitant damages, it’s questionable that judges would grant such high amounts.”

Cho concluded, “This scenario places ADOR in a precarious position, compelling them to consider legal action. However, the outcome of such cases is not determined solely by legal arguments.”

Specific Demands from NewJeans

Prior to their October 28 press conference, NewJeans had formally approached ADOR on October 13 with several specific demands aimed at addressing their grievances:

A formal apology from a manager who allegedly instructed others to ignore member Hanni.
Disciplinary actions against HYBE’s PR director for downplaying NewJeans’ accomplishments.
Measures to prevent unauthorized releases of trainee photos and video content.
A thorough investigation and rectification of damages caused by allegedly manipulating music chart positions.
Resolution of an issue with music video director Shin Woo-seok of Dolphin Kidnappers and recovery of missing project materials.

Current Status of the Contract

On October 28, NewJeans convened an emergency press conference where they declared the termination of their exclusive contract with ADOR effective as of midnight on October 29, citing failures to address these issues within the 14-day correction period.

In response, ADOR maintained that the contract remains operational, asserting, “The artists communicated their demands on October 13, to which we replied with our best possible measures by the November 28 deadline through both email and certified mail.” They also expressed their willingness to engage in sincere discussions with NewJeans to resolve the ongoing issues.

Source: Daum