Farmers charged 'double penalty' for delivery cancellations by NH Nonghyup... Court: "Excessive demand"
Published 2025년 10월 12일
Tridge summary
(Gwangju=Yonhap News) Reporter Jeong Hui-seong = The regional agricultural cooperative that filed a lawsuit against a farmer who secretly sought another supplier due to skyrocketing cabbage prices did not receive the full penalty amount they demanded.
The court ruled that while the farmer who canceled the contract bears primary responsibility, the agricultural cooperative also made excessive demands.
The Gwangju District Court's Civil Division 3-1 (Chief Judge Park Jong-hwan, Judge Park Hee-jung, and Judge Jung Yun-hyun) announced on the 12th that it dismissed the appeal filed by a regional agricultural cooperative in Jeonnam against Mr. A in a damages compensation (penalty claim) lawsuit.
Both the first instance and the appellate court ruled that the penalty amount Mr. A should pay is not the amount arbitrarily claimed by the agricultural cooperative, but the amount clearly stated in the documents.
Mr. A, who cultivates cabbage fields in Haenam County, the largest cabbage production area in the country, entered into a winter cabbage contract cultivation agreement with the plaintiff, the regional agricultural cooperative, in 2021.
Cabbage prices skyrocketed by 30 to 50% that winter, and Mr. A breached the agreement with the agricultural cooperative and sold all the cabbage to a third party.
The agricultural cooperative demanded compensation for damages from Mr. A due to the cabbage supply disruption, and as the two parties could not reach an agreement, the lawsuit went to the appellate court.
The amount demanded by the agricultural cooperative was twice the size of the usual expected contract fee when the contract was canceled.
However, the agreement between the agricultural cooperative and Mr. A specified that the penalty to be paid upon contract termination would be 40% of the contract amount.
The appellate court ruled in favor of Mr. A, stating, "The defendant, who failed to fulfill the contractual obligations, is liable for compensating the plaintiff for damages. However, this contract had predetermined the amount of compensation for breach of contract to prevent disputes in advance."
The court ruled that while the farmer who canceled the contract bears primary responsibility, the agricultural cooperative also made excessive demands.
The Gwangju District Court's Civil Division 3-1 (Chief Judge Park Jong-hwan, Judge Park Hee-jung, and Judge Jung Yun-hyun) announced on the 12th that it dismissed the appeal filed by a regional agricultural cooperative in Jeonnam against Mr. A in a damages compensation (penalty claim) lawsuit.
Both the first instance and the appellate court ruled that the penalty amount Mr. A should pay is not the amount arbitrarily claimed by the agricultural cooperative, but the amount clearly stated in the documents.
Mr. A, who cultivates cabbage fields in Haenam County, the largest cabbage production area in the country, entered into a winter cabbage contract cultivation agreement with the plaintiff, the regional agricultural cooperative, in 2021.
Cabbage prices skyrocketed by 30 to 50% that winter, and Mr. A breached the agreement with the agricultural cooperative and sold all the cabbage to a third party.
The agricultural cooperative demanded compensation for damages from Mr. A due to the cabbage supply disruption, and as the two parties could not reach an agreement, the lawsuit went to the appellate court.
The amount demanded by the agricultural cooperative was twice the size of the usual expected contract fee when the contract was canceled.
However, the agreement between the agricultural cooperative and Mr. A specified that the penalty to be paid upon contract termination would be 40% of the contract amount.
The appellate court ruled in favor of Mr. A, stating, "The defendant, who failed to fulfill the contractual obligations, is liable for compensating the plaintiff for damages. However, this contract had predetermined the amount of compensation for breach of contract to prevent disputes in advance."
Original content
(Gwangju=Yonhap News) Reporter Jeong Hui-seong = The regional agricultural cooperative that filed a lawsuit against a farmer who secretly sought another supplier due to skyrocketing cabbage prices did not receive the full penalty amount they demanded. The court ruled that while the farmer who canceled the contract bears the primary responsibility, the agricultural cooperative also made excessive demands. The Gwangju District Court's Civil Division 3-1 (Chief Judge Park Jong-hwan, Judge Park Hee-jung, and Judge Jung Yun-hyun) announced on the 12th that they dismissed the plaintiff's appeal in the damages (penalty claim) lawsuit filed by a regional agricultural cooperative in Jeonnam against Mr. A. Both the first instance and the appellate court ruled that the penalty Mr. A should pay is not the amount arbitrarily claimed by the agricultural cooperative side, but the amount clearly stated in the documents. Mr. A, who cultivates cabbage fields in Haenam County, the largest cabbage ...
Source: Yna
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