The relocation work of the E Elementary School on November 10, 2016 between the Plaintiff (Counterclaim Defendant) and the Defendant (Counterclaim Plaintiff) is part of the relocation work of the E Elementary School.

A principal lawsuit and a counterclaim shall be deemed simultaneously.

Basic Facts

A. The Defendants are companies contracted by the Incheon Metropolitan Office of Education to rearrange the relocation of E elementary schools.

On November 10, 2016, the Plaintiff entered into a subcontract (hereinafter “instant subcontract”) with Defendant B, the representative company of the Defendants (hereinafter “Defendant B”) and E elementary school relocation projects, setting the construction amount of KRW 652,850,00 (including value-added tax) regarding machinery and equipment works, and the construction period from November 10, 2016 to October 3, 2017.

B. On October 27, 2017, Defendant B notified the Plaintiff that the subcontract will be terminated due to the Plaintiff’s fault.

C. On December 29, 2017, the Defendants claimed 65,285,000 won as a contract deposit due to the Plaintiff’s nonperformance of the instant subcontract to the FFFF Cooperative.

[Ground for Recognition: Unsatisfy Facts, Gap evidence 1 through 3, Eul evidence 2, the purport of whole pleadings]

2. The parties' assertion

A. Since the Plaintiff and the Defendants confirmed that they did not settle each other when the subcontract was terminated, the Plaintiff did not have any obligation to implement the subcontract and compensate the Defendants for damages.

Nevertheless, since the Defendants seek payment of the FFF deposit, they seek confirmation of non-existence of obligations arising from the instant subcontract.

B. The Plaintiff re-subcontracted the entire subcontract of this case to G in violation of the Framework Act on the Construction Industry and the special agreement prohibiting sub-subcontracts.

In addition, even if the Plaintiff received progress payment from the Defendants, the Defendants did not pay the material cost and labor cost, and the Defendants did not directly pay it, and the entire construction schedule was delayed and the contract was terminated.

After the termination of the contract with the Plaintiff, the Defendants spent the construction cost of KRW 305,070,514, and other expenses (miscellaneous materials and food expenses) of KRW 2,056,689 in order to complete the remaining process, adding the remaining progress payment of KRW 193,327,00 to KRW 193,327,00.