On September 4, 2015, Lee & Ko obtained an award for KRW 36 billion in damages on behalf of a client in an international trade dispute involving a breach of an exclusive distribution agreement.
The matter involved an international trade dispute whereby an oil mill manufacturer (seller) and the importer each alleged breach of exclusive distribution agreement against the other party. Representing the importer, Lee & Ko had already obtained an injunction prohibiting the manufacturer (seller) from refusing to accept orders, requested a dismissal of the manufacturer’s application for an injunction to prohibit trademark infringement that resulted in an award of KRW36 billion in damages following a complete victory after 3 years and 6 months of litigation.
In winning this dispute, Lee & Ko established an important precedent on the method of assessing damages for breach of contract (including loss of future profit the innocent party would have made but for the contractual breach). This decision marks a substantial legal achievement as it also set precedent on the issue of validity of penalty clauses, with the court rejecting the manufacturer’s claim that the penalty clause was invalid in whole or in part and awarding our client ten times the amount of actual damages.