On October 30, the 41st Civil Court of the Seoul Central District Court issued an initial verdict in the lawsuit filed by ADOR against girl group NewJeans (Minji, Hanni, Danielle, Haerin, Hyein) to confirm the validity of the exclusive contract.
The court concluded: "The exclusive contract between ADOR and NewJeans signed on April 21, 2022 is still valid." The defendant, NewJeans, must pay all costs related to the lawsuit.
The court rejected NewJeans' argument that ADOR had seriously violated its contractual obligations and that the relationship of trust between ADOR and NewJeans had broken down, making the exclusive contract invalid.
Previously, the court proposed a settlement for both ADOR and NewJeans, but the two mediations were unsuccessful, due to deep disagreements on views between the two sides.
The court ruled: The dismissal of former CEO Min Hee Jin from ADOR has created a gap in management for NewJeans, but it is difficult to prove that ADOR lacks plans or ability to carry out its duties.
The exclusive contract does not include any clause stipulating that former CEO Min Hee Jin must take over ADOR. Even when Min Hee Jin was dismissed, she could still participate in production as an outside producer. Not only the CEO position can do this job.
The court also found that the origin of the conflict between Min Hee Jin and HYBE's parent company stemmed from Min Hee Jin. HYBE's dismissal of Min Hee Jin did not violate the exclusive contract with NewJeans.
According to the verdict, Min Hee Jin intentionally created negative public opinion about HYBE to separate ADOR and the NewJeans group from the group, and this caused HYBE to conduct an internal audit and then decide to remove Min Hee Jin from the position.
The court emphasized that Min Hee Jin's actions "not intended to protect NewJeans".
Regarding the accusation of violating the burden of handling related to HYBE, BELIFT LAB and Source Music, the court concluded: ADOR has fully implemented the necessary measures, such as deleting the trainee training video, requesting to stop posting and sending official dispatches, so it cannot be considered a violation of the artists protection obligations.
According to TenAsia, the exclusive contract between NewJeans and ADOR is valid until July 31, 2029. However, considering the time the group was suspended due to the lawsuit, it is likely that the contract will be extended by about 1 year.
After losing the lawsuit, NewJeans' legal representative said: "Although the members respect the court's decision, they still believe that their trust in ADOR has completely collapsed, so they cannot return to the company and continue normal entertainment activities.
The members plan to appeal immediately after the first instance judgment and hope that the appellate court will comprehensively review the events and legal principles related to the termination of the exclusive contract to make a wise decision.
Finally, the members would like to express our sincere gratitude to the fans who have waited patiently and supported the group for a long time.
