In the event that a product that has completed import clearance is destroyed to the extent that it is impracticable to recover as a tort and has no remaining value, the standard for calculating damages (=domestic market

The exchange value of goods, which completed import clearance, shall be deemed as the market value in Korea, which is the exchange value of the same goods distributed in Korea. Thus, if the goods, which completed import clearance, were not only impossible to restore the goods to their original state due to the tort but also damaged to the extent that they do not have any remaining value, the damages therefrom shall be calculated on the basis of the domestic market

Articles 393 and 763 of the Civil Act

KON-Wood Co., Ltd. (Attorney Lee Chang-soo, Counsel for the plaintiff-appellant)

Incheon Container Terminal Co., Ltd. (Law Firm Sejong, Attorneys Kim Chang-joon et al., Counsel for the defendant-appellant)

Seoul High Court Decision 2006Na20155 decided Dec. 21, 2006

The appeal is dismissed. The costs of appeal are assessed against the defendant.

The grounds of appeal are examined.

In general, damages caused by illegal acts shall be deemed ordinary damages, in cases where the goods are destroyed, the market price at the time of their destruction, in cases where the goods are damaged, or in cases where the repair or restoration to their original state is possible, or in cases where the repair or restoration to their original state is impossible or the expenses are excessive (see Supreme Court Decisions 95Da38233, Jan. 23, 1996; 2005Da44626, Apr. 28, 2006; 2005Da4626, Apr. 28, 2006). Therefore, the exchange value of the goods that completed import clearance should be deemed domestic market price, which is the exchange value of the same goods distributed in Korea. Thus, if the goods that completed import clearance are damaged to the extent that they cannot be restored to their original state due to illegal acts and that the goods are damaged to the extent of remaining value, the damages therefrom shall be

In light of the above legal principles and records, the court below acknowledged the facts as stated in its judgment, and held that it is reasonable to calculate the exchange value of the product of this case by the price supplied to the customer in Korea by the plaintiff because the plaintiff had already completed customs clearance at the time of the accident of this case and the plaintiff had already supplied the same kind of goods to the customer at a price exceeding 95,000 won per transaction before the accident of this case occurred, and the product of this case is expected to be supplied to the customer as before the accident of this case. There is no error in the misapprehension of legal principles as to damages or in the violation of precedents as alleged in the grounds of appeal.

Therefore, the appeal is dismissed, and the costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices.

Justices Kim Hwang-sik (Presiding Justice)