1. The plaintiffs' appeal is dismissed.

2. The costs of appeal are assessed against the Plaintiffs.

Purport of claim and appeal

The first instance court.

1. Basic facts

A. On March 29, 2012, the Defendant received the registration of the establishment of a neighboring mortgage (hereinafter “instant collateral security”) with respect to the building Nos. 101, 712, Dong-dong, 712 (hereinafter “instant real estate”) on the land, U.S., U.S. and six parcels, owned by T, with the maximum debt amount of KRW 100 million and the debtor W (T’s father).

B. On September 30, 2013, the procedure for the compulsory auction of real estate (hereinafter “instant auction procedure”) was commenced with respect to the instant real estate via the Daegu District Court Kimcheon-si Branch of the Daegu District Court. At the said auction procedure, the executing court opened a date of distribution on February 24, 2014 and completed a distribution schedule (hereinafter “instant distribution schedule”) with the content of allocating KRW 73,070,69,562 to the Defendant, a mortgagee, who is the right to collateral security, by deducting KRW 2,385,70 from the amount to be distributed by opening the date of distribution on February 24, 2014.

C. The Plaintiffs appeared on the aforementioned date of distribution, and stated an objection against the amount of distribution to the Defendant, and filed the instant lawsuit on February 27, 2014.

[Ground of recognition] Facts without dispute, Gap evidence Nos. 1, Eul evidence Nos. 1 to 3, the purport of the whole pleadings

2. The parties' assertion

A. The plaintiffs are the workers of X-X whose representative is registered in T, and have preferential rights to payment under the Labor Standards Act as to each claim stated in the purport of the claim corresponding to the wages of the last three months.

Nevertheless, in the above distribution procedure conducted in the auction on the instant real estate owned by the employer, the instant distribution schedule was prepared with the content that did not distribute each of the above money to the plaintiffs, but distributes the sales price to the defendant who is the subordinate mortgagee, and thus, the plaintiffs shall seek against the defendant to correct the instant distribution schedule as stated in the purport of the claim.

B. It was true that the Defendant’s assertion T was registered as the representative X, but the actual business owner of X is W, the father of T, and W is only the name of T, the ASEAN.