Whether the members are jointly and severally liable for the debt incurred by a joint supply and demand organization which is engaged in a commercial activity for all the members (affirmative in principle), and whether the joint supply and demand organization may enter into a subcontract with each member to pay the debt to the subcontractor directly in accordance with the ratio of shares in the subcontract (affirmative)

Articles 703 and 712 of the Civil Act, Article 57(1) of the Commercial Act

Suwon District Court Decision 200Na1447 delivered on August 1, 200

Young-jin Construction Co., Ltd. (Law Firm Chungcheong, Attorneys Song Hong-chul et al., Counsel for the plaintiff-appellant)

Gwangju High Court Decision 2011Na1902 decided October 27, 2011

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

The grounds of appeal are examined.

1. The joint venture in the way of a joint venture basically has the nature of a partnership under the Civil Act and, in the event that the liabilities of the partnership have been borne by all the partners as a conduct of commercial activities for all the partners, the joint venture shall be held jointly and severally liable pursuant to Article 57(1) of the Commercial Act. However, the joint venture shall be held jointly and severally liable for the damages incurred by each member, other than the joint venture, in the case where the joint venture agrees to have the subcontractor bear the obligations directly to the subcontractor according to its ratio of shares, as the joint venture makes a contract for the subcontract

2. Examining the reasoning of the judgment below in light of the records, the court below acknowledged the facts as stated in its reasoning after compiling the adopted evidence, and concluded a subcontract with the defendant and the non-party Hanyang Construction Co., Ltd., a joint contractor of this case, and agreed to divide the subcontract price in accordance with the ratio of shares between the defendant and the non-party company to bear the obligation to pay the subcontract price for each member by clearly specifying the subcontract price. It is just to dismiss the plaintiff's claim. It is not erroneous in the misapprehension of legal principles as to the scope of application of Article 57 (1) of the Commercial Act, joint and several liability arising from several commercial activities

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 on the bench.

Justices Park Poe-young (Presiding Justice)