Law: "Joint burden with agency... Clause to fulfill legal obligations even if changing company"
Forced to leave drama due to 'sexual assault'... Production company sues for appearance fees and penalties
[Asia Economy Reporter Heo Kyung-jun] Actor Kang Ji-hwan (real name Jo Tae-gyu), who lost the first trial in an unjust enrichment lawsuit filed by the drama 'Joseon Survival' production company, appealed the verdict but also lost in the second trial.
According to the legal community on the 26th, the Seoul High Court Civil Division 19-2 (Presiding Judges Kim Dong-wan, Bae Yong-joon, Jeong Seung-gyu) ruled partially in favor of the plaintiff in the appeal trial of the unjust enrichment refund lawsuit filed by the drama production company Studio Santa Claus Entertainment against Kang and Jellyfish Entertainment the day before.
The court ordered Kang to pay Studio Santa Claus approximately 5.38 billion KRW, with the responsibility to be jointly borne by Jellyfish, which was under an exclusive contract at the start of the drama production.
Studio Santa Claus Entertainment (formerly Why Not Riders Korea), the production company of the drama 'Joseon Survival,' signed a contract with Kang in April 2019 through his then agency Jellyfish Entertainment. The appearance fee was 76.3 million KRW per episode, totaling 1.526 billion KRW.
The contract included a clause stating that "the party responsible for contract cancellation or termination must pay double the appearance fee already paid to the other party as a penalty." Studio Santa Claus Entertainment later signed an export contract worth 4.7 billion KRW with Japan's NBC Universal Entertainment Japan, conditional on Kang's appearance in 'Joseon Survival.'
However, Kang was arrested and indicted in July 2019 on charges of forced molestation and quasi-rape after completing filming for 12 out of 20 episodes of 'Joseon Survival.' The charges involved sexual assault against two female outsourced staff members who were sleeping after a company dinner with agency employees at his home in Opo-eup, Gwangju-si, Gyeonggi Province.
With the lead actor's arrest and indictment making drama production impossible, Studio Santa Claus Entertainment notified Kang of contract termination and subsequently filed a lawsuit demanding payment of the full appearance fee, penalty, and damages totaling approximately 6.3896 billion KRW.
Previously, the first trial court ruled that "Kang must pay Studio Santa Claus approximately 5.34 billion KRW plus delayed interest, and Jellyfish Entertainment must jointly bear 610 million KRW of this amount."
The appellate court, like the first trial, recognized Kang's responsibility to pay approximately 610 million KRW for eight episodes out of the total 1.5 billion KRW appearance fee received from the drama production company, a penalty of approximately 3.05 billion KRW according to the pre-production contract, and damages of approximately 1.68 billion KRW for losses incurred by the production company in selling drama rights due to Kang's withdrawal.
Additionally, the court increased the payment amount by about 40 million KRW, holding Kang responsible for part of the appearance fee paid to substitute actors hired due to his withdrawal. The appellate court also significantly increased the amount Jellyfish must jointly bear, ordering Jellyfish to share the entire 5.3 billion KRW with Kang.
The basis for this ruling was a clause stating that even if Kang changed agencies midway after signing the appearance contract, Jellyfish would continue to fulfill the legal obligations of that contract.
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