1. The plaintiff's appeal is dismissed.

2. The costs of appeal shall be borne by the Plaintiff.

Purport of claim and appeal

The first instance court.

Basic Facts

On November 24, 2009, the Plaintiff entered into a trust contract and a business agreement with the Defendant (formerly: M Co., Ltd.), C Co., Ltd. (hereinafter “C”) and 10 financial institutions, including D Co., Ltd. (hereinafter collectively “loan financial institutions”), respectively, designated the Plaintiff as the truster and beneficiary, C Co., Ltd. as the first priority beneficiary, the Defendant as the second priority beneficiary, and H as the third priority beneficiary, respectively.

(hereinafter “instant trust contract”). The part relating to the instant trust contract relating to the instant case is as follows.

Article 9 (Beneficiary and Preferential Beneficiary) (3) The scope of preferential rights of preferential beneficiaries designated under paragraph (1) and the method of exercising preferential rights shall be as follows:

2. If the priority beneficiary has received the full repayment of the amount of claims, the rights and obligations of the priority beneficiary as provided for in this contract shall automatically be extinguished;

Where the claims of the priority beneficiary are extinguished, the priority order of the next priority beneficiary shall be promoted.

Article 13 (Contract for Construction Works) (1) A trustee shall enter into a contract for construction works with a contractor.

Provided, That if there is a contract for construction works already concluded between the truster and the contractor, such contract may be succeeded.

(3) Where a trustee fails to pay the construction price with trust property, the truster shall be responsible for the payment of the construction price to the contractor.

Article 15 (Methods of Sale, Management and Operation of Trust Real Estate) A trustee shall sell (including lease or disposal) and manage and operate trust real estate by the following methods:

1. A trustee may sell the trusted real estate in lots on the terms and conditions prescribed in a business plan;