2017Da25017 Prices of goods

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Daejeon High Court Decision 2016Na705 Decided June 29, 2017

July 26, 2018

The judgment of the court below is reversed, and the case is remanded to Daejeon High Court.

The grounds of appeal are examined.

1. Pursuant to the former Act on Fostering and Supporting Agricultural and Fisheries Enterprises (amended by Act No. 12961, Jan. 6, 2015; hereinafter referred to as the “former Act on Agricultural and Fisheries Enterprises”);

Except as otherwise provided for in relevant Acts and subordinate statutes, the legal doctrine on partnership under the Civil Act applies to an incorporated agricultural partnership, except for those premised on a legal personality (Article 16(3) and (7) of the former Agricultural and Fisheries Business Entities Act). However, in cases where a creditor of an agricultural partnership exercises his/her rights to a member, the legal doctrine on partnership under the Civil Act is applicable since it is not specifically provided for in the former Agricultural and Fisheries Business Entities Act. Ultimately, a creditor of an agricultural partnership may claim for the performance of the relevant obligation to each member at the time of the occurrence of the claim pursuant to Article 712 of the Civil Act (see, e.g., Supreme Court Decision 2016Da39897, Apr. 12

2. According to the reasoning of the lower judgment and the record, B farming association corporation (hereinafter “instant corporation”) was established on December 20, 2010 pursuant to the former Agricultural and Fishery Enterprises Management Act. The Defendant is a member of the instant corporation, and the Plaintiff supplied the instant corporation with the goods totaling KRW 274,392,100, such as rice, barley, etc. from January 2, 2014 to April 13, 2015, and the Plaintiff was not paid the goods amounting to KRW 149,292,100 among them.

Examining these facts in light of the legal principles as seen earlier, in the instant case where it is clear that Article 17(3) (limited to the amount of investment paid by a member or an associate member of an agricultural partnership) amended on or before July 7, 2015 pursuant to Article 3 of the Addenda to the Act on Fostering and Supporting Agricultural and Fishery Enterprises (amended on or before January 6, 2015) does not apply, the Defendant, who is a member of the instant legal entity, is liable for the above goods-price obligation under the Civil Act. Nevertheless, the lower court rejected the Plaintiff’s claim on the ground that the Defendant was not liable as a member under the Civil Act solely on the grounds stated in its reasoning. In so determining, the lower court erred by misapprehending the legal principles as to Article 16 of the former Act and the liability of a member of an agricultural and fisheries association for the obligations of an agricultural and fisheries business entity

3. Therefore, the lower judgment is reversed, and the case is remanded to the lower court for further proceedings consistent with this Opinion. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Cho Jong-hee

Justices Kim Jae-tae

Justices Kim Jae-in

Justices Min Il-young in charge