bhc Wins Lawsuit Against BBQ for Damages Including Trade Secret Infringement
Supreme Court Rules 'Loss' for bhc Chicken in Trade Secret Infringement Suit
BBQ "Successful Defense on Unfair Termination of Logistics Service Contract"
Three civil lawsuits, including a damages claim related to trade secret infringement between chicken franchises bhc and Genesis BBQ, were ruled in favor of bhc.
According to the chicken industry on the 18th, bhc announced that on the 13th, the Supreme Court's 3rd Division (Presiding Justice Ahn Cheol-sang) dismissed all appeals in the final appeal trial of the damages claim lawsuit related to trade secret infringement, confirming the original ruling that BBQ's claims of trade secret infringement against bhc were unfounded.
According to bhc, on the same day, the Supreme Court's 3rd Division (Presiding Justice Oh Seok-jun) also confirmed the original ruling recognizing BBQ's liability for damages in the appeal trial of the damages claim lawsuit related to the product supply contract and logistics service contract.
The Supreme Court stated in its judgment that after reviewing the case records and the original ruling, the grounds for appeal did not include reasons stipulated in Article 4, Paragraph 1 of the Special Act on Appeal Procedures or were deemed unacceptable, thus dismissing all appeals.
On the same day, the court recognized that BBQ's unilateral termination of the product supply contract and logistics service contract with bhc was an unfair breach of contract, confirming damages liabilities of approximately 12 billion KRW and 8.5 billion KRW, respectively.
bhc stated, "In the appeal trials of three damages claims including trade secret infringement, product supply contract, and logistics service contract last November, we won all cases following the first trial," adding, "We have finally put an end to the long legal battle with BBQ."
BBQ immediately released a statement titled "The 7-year lawsuit concluded with BBQ holding the initiative, Supreme Court confirms the appellate ruling recognizing bhc's fault." They claim that although bhc won, BBQ performed well during the process.
A BBQ official said, "Over more than six years of repeated legal battles, it was revealed that bhc's claims were malicious lawsuits aimed at killing a competitor rather than actual damage relief," adding, "Following the June last year sentencing of Chairman Park Hyun-jong to six months imprisonment with two years probation for unauthorized network intrusion, and the November 3rd loss in the unjust enrichment claim lawsuit requiring BBQ to pay about 7.5 billion KRW, the Supreme Court's dismissal of the appeal in the same context has brought the case to a close."
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In response, a bhc representative said, "We respect the Supreme Court's clear judgment that BBQ's unilateral unfair termination of the product supply and logistics service contracts established BBQ's liability for damages, and that BBQ's claims regarding trade secret infringement were unfounded and factually unsubstantiated," adding, "We hope this ruling will end any further controversy and disputes related to this matter. bhc will continue to focus on strengthening compliance management, transparent management, win-win management, and sharing management as before, growing as a comprehensive food service company leading the domestic food service industry."
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