SM Loses in Court Again, Injunction Requests Against JYJ Thrown Out

JYJ has won another victory in the courts in their epic fight against SM Entertainment, its former Korean management company. According to translated reports, Seoul District Court has thrown out two injunctions filed by SM against JYJ.

The Court has also further confirmed the unfairness of the exclusive contract, and upheld an earlier ruling making sure SM has no right to interfere with JYJ’s independent activities.

Initially, the Court ruled that SM could not interfere with whatever activities Junsu, Yoochun or Jaejoong decided to participate in while this lawsuit is ongoing. As a result, SM filed an injunction on Oct 27 2009 claiming that it was illegal for the Courts to keep them (SM) from interfering with JYJ activities.


In the ruling, the Court stated that JYJ was in an inferior or subordinate position to negotiate because SM had the unilateral right to make all of the decisions according to their contract.

The Court says the exclusive contract “cannot be justified under any circumstances such as overseas expansion or a decrease of investment risk,” and that the SM contract is “invalid not only on the account of exceptionally long term of the contract but other clauses such as interference in JYJ’s every action and excessive penalty of breach of the contract.”

So now we have a ruling from an independent 3rd party stating that the exclusivity of the contract – the main reason why JYJ filed a lawsuit against SM in the first place – forced JYJ to basically be at the mercy of SM without any power to decide anything.

The Court also said that SM can’t use the rather ridiculous excuse that JYJ should be under a 13 year contract in order to recoup all the money SM decided to spend on other kids who weren’t successful.

SM was also criticized by the Court for its “ability to supervise and direct every move made by JYJ”.

But that’s not all. SM filed a 2nd injunction against JYJ, and again the Court rejected it. The 2nd injunction was SM asking the Court to suspend the contract between CJeS and JYJ. Remember, the Court had already ruled that SM couldn’t interfere with JYJ’s individual activities. So the Court also threw out SM’s request to get in the way of CJeS and JYJ, thus confirming that SM doesn’t have any rights whatsoever to hinder JYJ’s activities.

According to translated reports, CJeS CEO Baek Chang Ju said:

“We consider it a victory of truth and hope that their activities are no longer hindered by forced accusations of double contracts. We will be working hard to show only the best side of JYJ to the public. I would like to thank the JYJ members and the staff for consistently battling a tiring fight against Goliath.”


The big ruling on the main case is expected sometime in March 2011.

Source Mat.:
E Daily
World Journal
Sports Chosun via Daum
trans credit: DCTVXQ_gall

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