Two Failed Mediation Attempts... Court Sets Verdict for October 30
ADOR: "Contract Remains Valid" vs. NewJeans: "Trust Has Broken Down"
The exclusive contract dispute between the girl group NewJeans and their agency ADOR is now headed for a court ruling.
On the 14th of last month, NewJeans' Daniel (left) and Minji were entering the court for the first trial mediation of the exclusive contract validity confirmation lawsuit. Photo by Yonhap News Agency
The Civil Agreement Division 41 of the Seoul Central District Court (Presiding Judge Jeong Hoeil) announced on September 11 that both parties failed to reach an agreement during the second mediation session, which lasted about 20 minutes from 1:30 p.m. The first mediation session, held on August 14, also ended without a settlement, so the court has decided to deliver its verdict on October 30.
In November last year, NewJeans declared the termination of their contract, stating that ADOR had violated the exclusive agreement, and began pursuing independent activities. In response, ADOR argued that the contract remained valid and filed a lawsuit to confirm the validity of the exclusive contract. The agency also requested an injunction to prevent the members from carrying out independent activities before the main ruling. The court sided with ADOR and issued a decision restricting the members' activities.
The main issues in the lawsuit are the validity of the exclusive contract and whether there are legitimate grounds for termination. ADOR claims, "We invested 21 billion won to fully support NewJeans," and insists, "There are no grounds for termination; the trainees simply changed their minds after becoming successful." Regarding the alleged breakdown of trust, ADOR counters, "We provided opportunities for entertainment activities and there were no problems with financial settlements, so there is no situation in which trust has been broken."
On the other hand, NewJeans argues, "After former CEO Min Heejin was ousted and replaced by HYBE executives, the ADOR we trusted and relied on at the time of the exclusive contract essentially no longer exists," adding, "The company's changes and the lengthy legal process have completely destroyed our trust."
Ultimately, the sharp differences between the two sides could not be reconciled, and the verdict scheduled for October is expected to be a watershed moment for the future of NewJeans' activities.
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