On April 3, 2025, the Seoul Central District Court’s Civil Division 41 (presided over by Judge Jeong Hoe Il) held its first hearing regarding ADOR’s lawsuit against NJZ (NewJeans) over the validity of their exclusive contract. None of the group’s members attended the session.
The key points of contention in the case revolve around three main issues: the producer change, the alleged breakdown of trust, and the legitimacy of the contract termination. The resignation of former ADOR CEO Min Hee Jin, a crucial aspect of the case, has become a focal point for intense disagreement.
ADOR’s Position:
ADOR acknowledged Min Hee Jin’s significant contribution to the success of NewJeans, but maintained that as a subsidiary of HYBE, the industry leader, the company has the capacity to introduce a new producer to support the group’s development. ADOR argued that if they had planned to remove Min Hee Jin, they should have arranged for a suitable producer replacement beforehand.
NewJeans’ Response:
NewJeans contested the producer change process, stating that ADOR should have made provisions for a replacement producer if Min Hee Jin’s departure was imminent. NewJeans expressed concerns over the lack of communication regarding these changes, claiming that they were not properly consulted or informed.
ADOR’s Rebuttal:
ADOR countered by asserting that Min Hee Jin voluntarily resigned. They emphasized that while the opinions of the artists are important in producer decisions, NewJeans had refused to communicate their views, thus complicating the process.
NewJeans’ Trust Breakdown Claim:
NewJeans argued that the company’s internal changes and the leadership shift had led to a breakdown of trust, rendering the exclusive contract termination valid. They emphasized that the company’s new management team, with differing values, made it impossible to continue a working relationship based on trust.
ADOR’s Response on Trust:
ADOR responded by pointing out that NewJeans successfully completed their performance at ‘ComplexCon Hong Kong’ on March 23 without Min Hee Jin’s presence. ADOR pointed out the inconsistency between NewJeans’ statements about needing Min Hee Jin for their activities and their successful event without her involvement.
Court’s View:
The court acknowledged that the trust issue would require further discussion. Typically, such issues arise when no payments are received, and the artist requests a contract termination. However, given NewJeans’ established success, the court noted that the situation might require different consideration. Judge Jeong stated that if the breakdown of trust was solely due to Min Hee Jin’s absence, it would not align with traditional cases of trust violations and needed deeper examination.
Termination of the Contract:
NewJeans also cited their request for eight corrective actions in November 2023, which ADOR had allegedly failed to address. They argued that under Article 15 of the exclusive contract, this lack of response justified their request for contract termination.
ADOR’s Rebuttal on Termination:
ADOR rejected NewJeans’ claims, asserting that the group’s arguments lacked solid procedural and substantive evidence. They emphasized that NewJeans had not followed the proper procedures for contract termination and that their reasons for cancellation were insufficient.
Final Disagreement:
As the hearing came to a close, ADOR expressed their willingness to reach a settlement with NewJeans, but NewJeans rejected the offer, citing the members’ emotional concerns.
The next hearing is scheduled for June 5, 2025, at 11:10 AM. At that time, ADOR will be required to clearly outline their plans for producer support, while NewJeans will need to present additional evidence to support their termination claim.
Injunction Decision:
Additionally, on March 21, 2025, the court granted ADOR’s injunction to prevent NewJeans from engaging in advertising contracts or other related activities. As a result, NewJeans ceased all activities after their performance at ‘ComplexCon Hong Kong’ on March 23, 2025.
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