The Seoul High Court ruled in favor of Ewha on May 3 in its legal battle against Paju which has filed a damages suit against Ewha over its withdrawal of plans to build a campus in the region. This was the second trial after Paju lost the first trial in June 2012 and appealed the ruling to the higher court.
The Court decided that Ewha’s cancellation of its previous plans can be regarded as a rational decision as the school had to efficiently manage its limited budget.
Furthermore, the Court concluded that the actual damage Ewha posed on Paju is estimated to be less than the amount that Paju had alleged.
Moreover, the Court said the Memorandum of Understanding (MOU) between Ewha and Paju does not hold the same legal effect as that of a contract.
Ewha signed an MOU with Paju in October 2006 for constructing Paju Education and Research Complex at the former Camp Edward site. However, Ewha aborted the Paju campus plan in August 2011 after sensing the plan would not be feasible due to the excessively high price of land set by the Ministry of National Defense who is the current owner of the site.
After the withdrawal of Ewha from this plan, Paju sued against Ewha, asking Ewha’s school foundation, Ewha Hakdang to pay 1.4 billion won in compensation of its investment in soil remediation and holding a concert in celebration of constructing the Paju Campus.
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