In a case where a fisheries cooperative by district, which is a fishery license holder, concluded a contract on the exercise of fishery right with a fishing village fraternity composed of some of its members within the district and made the members of such fishing village fraternity exercise the fishery right, the subject of the right to claim compensation for losses due to the extinction of fishery right (=district fisheries cooperative by district) and the procedure that should be taken

Where a fisheries cooperative, a holder of a fishery license, concludes a contract on the exercise of fishery right with a fishing village fraternity comprised of some of its members and allows its members to exercise the fishery right, the right to claim compensation due to the extinguishment of the fishery right belongs to the district fisheries cooperative that is the holder of the fishery license and does not belong to the fishing village fraternity that has concluded a contract on the exercise of fishery right. Therefore, the distribution of compensation for losses or disposition should be subject to a resolution of a general meeting of the fisheries cooperative within the district, unless otherwise expressly provided in the articles of association. However, if the contents of the resolution of the general meeting of the fisheries cooperative within the district are remarkably unfair to the members of the fishing village cooperative that exercises the fishery right, the right to claim compensation for losses due to the extinguishment

Articles 9, 82, 2, 16-2, 43, and 44 of the Fisheries Act;

Plaintiff 1 and 19 others (Law Firm Dongdong General Law Office, Attorneys No. 50 others, Counsel for the plaintiff-appellant)

Chang Fisheries Cooperatives (Attorney Cho Chang-chul et al., Counsel for the defendant-appellant)

Busan High Court Decision 99Na7916 delivered on March 10, 2000

All appeals are dismissed. The costs of appeal are assessed against the plaintiffs.

We examine the grounds of appeal.

Where a fisheries cooperative, a holder of a fishery license, concludes a contract on the exercise of fishery right with a fishing village fraternity comprised of some of its members and allows its members to exercise the fishery right, the right to claim compensation due to the extinguishment of the fishery right belongs to the district fisheries cooperative that is the holder of the fishery license, and does not belong to the fishing village fraternity that has concluded a contract on the exercise of fishery right. Therefore, the distribution of compensation for losses or disposition should be subject to a resolution at a general meeting of the fisheries cooperative within the district, unless otherwise provided in the articles of association, and it does not require a resolution at a general meeting of the fishery cooperative within the district. However, if the resolution at a general meeting of the fisheries cooperative within the district is remarkably unfair for the members of the fishing village cooperative that exercises the fishery right,

In the same purport, the court below is just in holding that, in this case where the defendant union, which is the holder of fishery right, entered into a contract for the exercise of fishery right with the non-party who is part of its members, compensation for the extinguishment of the fishery right belongs to the defendant union, which is the holder of fishery right. Thus, in distributing and disposing of it, the defendant union shall make a resolution at the general meeting of the defendant union at the time of the conclusion of the above contract for the exercise of fishery right, and the defendant union shall pay 96.5% of the compensation to the above fishing village union, and the remaining 3.5% of the compensation shall be paid to the above fishing village union, and the remaining 3.5% of the compensation shall not be deemed to have accrued without any legal grounds, even if the defendant union accumulated it as its own fund for the promotion of common interests of the defendant union, and it shall not be deemed to have any different grounds for the law or the articles of

Therefore, all appeals are 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 on the bench.

Justices Lee Han-gu (Presiding Justice)