The law firm Cheongchul (Lead attorney: Park Jong-han, Bae Gi-hyung) represented a client who was a member of a local housing association and had entered into a withdrawal agreement with the association. The firm successfully brought a lawsuit for the return of the contributions (contract deposit and interim payment) already paid to the local housing association, resulting in mediation that awarded the client all claimed amounts and interest.

1. Background of the case

The client entered into a contract to join the local housing association and paid contributions (contract deposit and interim payment); however, the association's project did not proceed smoothly, and the client signed a withdrawal agreement with the association. Nevertheless, the association did not return the contributions to the client immediately and was refusing to return the contributions of the withdrawing members unless a new substitute member was recruited according to the termination process.

In response, the law firm Cheongchul filed a lawsuit on behalf of the client against the association for the return of the contributions.

2. Legal issues (Main arguments and issues of Cheongchul)
The law firm Cheongchul emphasized during the trial and mediation process that the recruitment of substitute members falls under an uncertain time frame, that the recruitment depends on the good faith and effort of the defendant association, that the client cannot influence that process, and according to the Housing Act Enforcement Ordinance, the local housing association cannot recruit additional members once an application for project plan approval is submitted, yet the defendant association did not apply for approval to recruit additional members and instead applied for project plan approval, and that the defendant association made no significant efforts to recruit additional members for a significant period of time. Furthermore, it was highlighted that a similar case previously handled by Cheongchul resulted in a complete victory for the return of contributions, and a similar judgment should be given in this case, ultimately succeeding in having the client recover all contributions paid.

3. Significance (Meaning of this case)

Originally, the success rate of local housing association apartment projects is only about 20%, and with the recent deterioration of the real estate market, the likelihood of success for these projects has fallen. As a result, clients who have diligently paid their contributions are now seeking to terminate their membership contracts and wish to have their contributions returned.

The problem is that with the project already halted, the association has very little funding, so even if one wins a lawsuit against the association, the practical possibility of recovering funds is very low.

To avoid such risks, Cheongchul not only targeted the local housing association but also the trust company managing the funds as defendants in the lawsuit, pressuring the association by citing past cases of contribution return claims handled by Cheongchul, and finally achieving a mediation result that retrieved all contributions and interest from the association.

If you need a solution for related disputes, please do not hesitate to contact Cheongchul Law Firm.