đá bóng trực tiếpSupreme Court Decision 2011Da110685 Decided October 24, 2013 about Confirmation of Membership Qualification

Main Issues and Holdings

[1] Legal nature of a dong/ri Office organized inside đá bóng trực tiếp dong/ri administrative division and conditions to regard a dong/ri office as an association accepting only specific residents as its members

[2] As for đá bóng trực tiếp question whether “Myeongchon-ri Sang-ri Saemaeul Club” is an organization made of specific residents, đá bóng trực tiếp Court held that this organization is a traditional residential community organized by village residents, in light of surrounding circumstances

Summary of Decision

[1] Dong and ri offices are permanent associations organized inside đá bóng trực tiếp dong and ri administrative divisions. Except under unusual circumstances, all residents of đá bóng trực tiếp relevant area are members, and a person who moves into đá bóng trực tiếp division becomes a resident and member of đá bóng trực tiếp dongㆍri office automatically, and a resident loses đá bóng trực tiếp qualifications to be a member once he/she moves to another area. In order to find otherwise that a dongㆍri office is an organization for specific members, đá bóng trực tiếp following must to proven: that at đá bóng trực tiếp time đá bóng trực tiếp office acquired its property, it had a certain organic structure to exist as an association without legal personality together with đá bóng trực tiếp process or details behind đá bóng trực tiếp ownership of property in đá bóng trực tiếp office’s name.

[2] In a case where đá bóng trực tiếp issue was whether “Myeongchon-ri Sang-ri Saemaeul Club” is an organization made of specific residents, đá bóng trực tiếp court held that in light of surrounding circumstances such as đá bóng trực tiếp forestland’s previous ownership and use, đá bóng trực tiếp above association is a traditional residential community organized by village residents, and đá bóng trực tiếp judgment below was erroneous for misapprehending đá bóng trực tiếp legal principles on residential communities and unincorporated associations.

Reference Provision [1] Article 31 of đá bóng trực tiếp Civil Act / [2] Article 31 of đá bóng trực tiếp Civil Act

Article 31 of đá bóng trực tiếp Civil Act (Rule to Formation of Juristic Person) No juristic person can come into existence other than in accordance with đá bóng trực tiếp provisions of đá bóng trực tiếp Acts.

Reference Cases [1] Supreme Court Decision 2010Da75723, Oct. 25, 2012 (Gong2012Ha, 1907), Supreme Court Decision 2008Da71469, Jan. 30, 2009

Plaintiff-Appellant Plaintiff 1 and 5 others (Law Firm Taehwa, Counsel for plaintiff-appellant)

Defendant-Appellee Myeongchon-ri Sang-ri Saemaeul Club (Law Firm Cheong-ryul, Attorneys Chang Hee-seok, et al., Counsel for defendant-appellee)

Judgment of đá bóng trực tiếp court below Busan High Court Decision 2010Na12739 decided November 29, 2011

Disposition đá bóng trực tiếp judgment below is reversed, and đá bóng trực tiếp case is remanded to Busan High Court.

Reasoning đá bóng trực tiếp grounds of appeal are examined.

1. Dong (neighborhood) and ri (village) offices are permanent associations organized inside đá bóng trực tiếp administrative divisions dong and ri. All residents of đá bóng trực tiếp relevant districts are members, and a person who moves into đá bóng trực tiếp district automatically becomes a resident and member of đá bóng trực tiếp dongㆍri office, and a resident loses đá bóng trực tiếp qualifications to be a member once he/she moves to another area. In order to find that a dongㆍri office is an organization for specific members, đá bóng trực tiếp following must to proven:

that đá bóng trực tiếp office existed as an association which is not a juristic person, and đá bóng trực tiếp process or details behind đá bóng trực tiếp ownership of property in đá bóng trực tiếp office’s name (see Supreme Court Decisions 2008Da71469, Jan. 30, 2009; 2010Da75723, Oct. 25, 2012, etc.).

Meanwhile, đá bóng trực tiếp existence of de facto custom must be alleged and proven by đá bóng trực tiếp relevant party (see Supreme Court Decision 80Da3231, Jun. 14, 1993, etc.).

2. According to đá bóng trực tiếp reasoning and records of đá bóng trực tiếp judgment below, đá bóng trực tiếp following facts can be acknowledged.

A. Myeongchon-ri at Sangbuk-myeon, Ulju-gun, Ulsan has 1 village chief, but is made of two naturally occurring communities named Myeongchon village (Sang-ri) and Sagwang (Ha-ri) village.

On Jun 17, 1985, Defendant completed ownership transfer registration for đá bóng trực tiếp forest of this case, in accordance with đá bóng trực tiếp Act on Special Measures for Registration, etc. of Transfer of Real Estates Ownership. On Jun 13, 1994, đá bóng trực tiếp “Myeongchon-ri Saemaeul Club” completed đá bóng trực tiếp aforementioned registration for đá bóng trực tiếp 56㎡ etc. land at đá bóng trực tiếp village hall in Myeongchon-ri Sangbuk-myeon, Ulju-gun, Ulsan (lot No. 1 omitted). On Jul. 12, 1994, đá bóng trực tiếp “Sagwang Community Saemaeul Club,” organized of Sagwang village residents, completed đá bóng trực tiếp same registration for đá bóng trực tiếp 41,554㎡ forest land at Dungeok-ri, Sangbuk-myeon, Ulju-gun, Ulsan (lot No. 2 omitted).

B. On Feb. 30, 1918, đá bóng trực tiếp Forest Survey Project adjudicated Myeongchon village resident Nonparty 1 et al. as đá bóng trực tiếp owner of đá bóng trực tiếp forestland of this case, then later, ownership preservation and ownership transfer registration occurred under đá bóng trực tiếp name of Nonparty 2, another local resident. Yet during this process, none of đá bóng trực tiếp named owners claimed personal ownership, and đá bóng trực tiếp forest was used by all residents for collecting firewood and as gravesites.

C. At its general assembly meeting on Aug. 10, 1984, Defendant unanimously agreed to register đá bóng trực tiếp forest of this land under đá bóng trực tiếp Samaeul Club whose representative is village resident Nonparty 3, in order to prevent potential disputes caused by registering đá bóng trực tiếp forest under an individual. According to đá bóng trực tiếp minutes written at đá bóng trực tiếp meeting (hereinafter “minutes of this case”), “26 out of 35 community residents attended đá bóng trực tiếp meeting,” and included đá bóng trực tiếp name of đá bóng trực tiếp 26 attendees at đá bóng trực tiếp end.

D. On 2004, Ulju-gun announced đá bóng trực tiếp plan to construct a tourism complex on đá bóng trực tiếp forest of this case. On Defendant’s Jul. 23, 2005 general meeting, Defendant began đá bóng trực tiếp project of selling đá bóng trực tiếp forest of this case by taking measures such as selecting 7 “Steering Committee for đá bóng trực tiếp Selling of đá bóng trực tiếp Hill”including Plaintiff 6, Nonparty 4, and Nonparty 5. Accordingly, disputes over membership qualifications occurred between Myeongchon village residents due to đá bóng trực tiếp issue of dividing đá bóng trực tiếp sale proceeds.

E. To solve this problem, Defendant acquired “Articles of đá bóng trực tiếp Myeongchon-ri Samaeul Club”which used đá bóng trực tiếp same organization name with Defendants (Defendant changed its name to đá bóng trực tiếp present name on Jan. 21, 2006 in order to avoid confusion with “Myeongchon-ri Samaeul Club”). According to đá bóng trực tiếp Articles, members are those who have registered as Myeongchon-ri residents and presently live in đá bóng trực tiếp community (Articles 4 and 5), and one loses membership qualifications when he/she moves to another area or transfers their residency registration to another area (Article 6).

F. Based on đá bóng trực tiếp premise that đá bóng trực tiếp above Articles are Defendant’s own Articles, Defendant held a general meeting on Aug. 24, 2005 while excluding Plaintiff 6, Nonparty 4, and Nonparty 5, who were chosen as Steering Committee members but who reported address transference to another area at đá bóng trực tiếp time. At đá bóng trực tiếp meeting, Defendant agreed to amend đá bóng trực tiếp aforementioned Article 5 to include “a person who moved from another area has no rights over any property that belongs to đá bóng trực tiếp Saemaeul Club.”

G. Afterwards, Defendant held general meetings attended only by specific residents whom it considers to qualify as members. At đá bóng trực tiếp Jan. 21, 2006 meeting, Defendant amended đá bóng trực tiếp Article to include đá bóng trực tiếp following: full membership is limited to “a householder residing in Myeongchon village whose household lived in Myeongchon village for over 30 years including their lineal ascendant (Article 6),” remaining local householders who satisfy certain conditions such as registration for address transference are associate members (Article 7), only full members have đá bóng trực tiếp right to vote for an election, eligibility to run for election, and right to vote at meetings (Article 9), and associate members may have a maximum of 70% right of share over Defendant’s property (Article 19). On đá bóng trực tiếp Jun 18, 2009 general meeting, đá bóng trực tiếp following articles were enacted: “qualification for membership is acknowledged to householders residing in Myeongchon village who is recorded in đá bóng trực tiếp minutes of this case, and who have continuously lived in đá bóng trực tiếp village; đá bóng trực tiếp member automatically loses membership qualification upon death or transference to another area, but membership is acknowledged if his/her spouse or direct descendant moves in to Myeongchon village within 6 months following đá bóng trực tiếp death or transference (Articles 5 and 6).”

H. Meanwhile, Plaintiffs have moved to and lived in Myeongchon village at least before Nov. 25, 2005, but are denied membership status by Defendant.

3. đá bóng trực tiếp aforementioned facts are examined in light of đá bóng trực tiếp above legal principles.

It is sufficient to perceive that Defendant is a traditional community organized of Myeongchon village residents, in light of đá bóng trực tiếp following: đá bóng trực tiếp previous ownership and utilization of đá bóng trực tiếp forest of this case; đá bóng trực tiếp contents of đá bóng trực tiếp minutes of this case; in particular, when đá bóng trực tiếp minutes of this case was written, đá bóng trực tiếp number of householders who are registered residents in Myeonchon village and actually live in đá bóng trực tiếp village seems to be no more than 35, while Defendant alleged that Defendant is not a simple naturally occurring community, but a specific community made of householders whose membership was acknowledged in accordance with Defendant’s alleged custom (Previously, when a Myeonchon village native moves out of his/her household, he/she can acquire membership only by inviting Defendant’s members to a party and under all members’ unanimous decision. đá bóng trực tiếp person loses membership upon leaving đá bóng trực tiếp village.), yet is unable to clarify đá bóng trực tiếp remaining 9 members aside from đá bóng trực tiếp 26 members who attended đá bóng trực tiếp meeting; it is difficult to perceive that Defendant’s alleged custom was reflected in đá bóng trực tiếp association’s Article; considerable differences exist within đá bóng trực tiếp association articles as well; it appears another resident other than đá bóng trực tiếp village chief was chosen to represent Defendant, as đá bóng trực tiếp Myeongchon-ri village chief represents Myeongchon village and Sagwang village, while Defendant is only organized of Myeongchon village residents, and etc.

Yet đá bóng trực tiếp court below determined differently. Citing đá bóng trực tiếp circumstances in its ruling, đá bóng trực tiếp court below determined that Defendant is not a naturally occurring village community in which any Myeongchon village resident may be a members and whose members change due to transference, etc. of residents, but an association which existed according to đá bóng trực tiếp above custom, then became a specific community organized of householders from 35 households who qualify as members at đá bóng trực tiếp time Defendant’s ownership transfer registration of its real estate was completed. This judgment below was erroneous for affecting đá bóng trực tiếp judgment by misapprehending đá bóng trực tiếp legal principles on residential communities and unincorporated associations, and đá bóng trực tiếp allegation in đá bóng trực tiếp grounds of appeal which identify this error is with merit.

4. Conclusion

Therefore, đá bóng trực tiếp judgment below is reversed, and đá bóng trực tiếp case is remanded to đá bóng trực tiếp court below for further proceedings consistent with this opinion. It is decided as per Disposition at đá bóng trực tiếp assent of all participating Justices.

Justices  Park Byoung-dae (Presiding Justice)

Yang Chang-soo

Ko Young-han

Kim Chang-suk (Justice in charge)