NewJeans Loses Lawsuit Against ADOR Over Exclusive Contract... "Immediate Appeal Planned"

[Financial News] The agency ADOR has once again prevailed in a lawsuit against the girl group NewJeans. After the court dismissed all claims for contract invalidation, NewJeans' side announced plans to seek a new judgment through an appeal.
On the 30th, the Civil Division 41 of the Seoul Central District Court (Presiding Judge Jeong Hoe-il) ruled in favor of the plaintiff in ADOR's lawsuit to confirm the validity of its exclusive contract with NewJeans. In civil cases, unlike criminal trials, the parties are not required to appear in court, so the NewJeans members did not attend the hearing.
The court did not recognize any of the grounds for termination of the exclusive contract raised by the NewJeans members, including claims of disadvantageous obligations. NewJeans argued that the dismissal of former CEO Min Hee-jin by ADOR constituted a breach of contract, but this was not accepted.
The court stated, "The mere fact that former CEO Min was dismissed from ADOR does not mean there was a management vacuum for NewJeans, nor does it indicate that ADOR lacks the ability or plans to carry out its duties." The court further pointed out, "There is no clause in the contract requiring that Min must remain in charge of ADOR." It added, "Even if the defendants (NewJeans) place great trust in Min, it is difficult to see her role as a core element that must be guaranteed by the exclusive contract."
The court also noted that Min Hee-jin could continue to work as an external director even after stepping down as CEO. "Even after her dismissal as CEO, Min can still participate as a producer in her capacity as an outside director, so it is not necessary for her to hold the CEO position to fulfill her production duties for the defendants," the court explained.
The court particularly found that during Min's dismissal process, she engaged in a public campaign against the agency. The court explained, "According to Min's KakaoTalk messages, she prepared for a public campaign and lawsuits with the intention of making ADOR, including NewJeans, independent from Hybe, and sought investors to acquire ADOR, while also creating public opinion that Hybe acted unfairly." The court concluded, "Such actions cannot be seen as protecting NewJeans from a breach of contractual obligations." The audit of Min by ADOR was therefore not deemed unjust, as it resulted from her actions.
Additionally, the court rejected all other grounds NewJeans cited for contract termination, including: the leak of trainee photos and videos; disparaging remarks about NewJeans' achievements by Hybe PR staff; attempts by BELIFT LAB's idol group Illit to undermine or replace NewJeans' uniqueness; preventing collaboration with the video production company Dolphiners; and Hybe's alleged album 'bulk buying' practices that allegedly diminished NewJeans' achievements. None were found to constitute a breach of the exclusive contract.
The court also did not accept NewJeans' argument that a breakdown in trust with ADOR made it impossible to maintain the exclusive contract. The court stated, "Circumstances after the notice of contract termination do not indicate that the relationship of trust between ADOR and NewJeans has broken down to the extent that the contract cannot be maintained."
The court continued, "Forcing an entertainer to perform exclusive activities against their will may excessively infringe on their personal rights." However, it added, "If an entertainer, after gaining full support and building a fandom through an exclusive contract, seeks to exercise management rights or creative control and is denied, this cannot be regarded as a violation of personal rights resulting from the contract."
As the court has ruled that the contract between ADOR and NewJeans remains valid, NewJeans will continue to be affiliated with ADOR.
Nevertheless, NewJeans maintains that returning to ADOR is impossible despite the court's decision. Their legal representative stated, "While we respect the court's judgment, it is impossible to resume normal entertainment activities with ADOR given the complete breakdown of trust," and announced plans to appeal.
Previously, the NewJeans members had requested the reinstatement of Min Hee-jin, who was dismissed following a conflict with Hybe, but this was not accepted. In November last year, they claimed that the contract had been terminated due to ADOR's breach and announced plans to pursue independent activities. ADOR responded by filing a lawsuit to confirm the contract's validity and sought an injunction to prohibit independent activities. The court granted the injunction, and NewJeans' objections and appeals were all dismissed. The court attempted mediation twice before the verdict but no agreement was reached.

theknight@fnnews.com Jung Kyung-soo, Choi Eun-sol Reporter