On November 28th, New Jeans held an emergency press conference to discuss early termination of the contract. Since November 29th the group is no longer under the old label, I LOVE IT.
At the press conference, Haerin stated that NewJeans has no intention of paying compensation for the early termination of its contracts because NewJeans is not at fault. Rather, ADOR and HYBE should be responsible for covering the costs.
I have read several articles about sanctions, but we have not violated our exclusive contract. We have worked hard and done our best so far, so we believe there is no reason for us to pay any penalty.
—Haerin
NewJeans reiterated this in a statement released by members on November 29. Among other things, NewJeans said that ADOR “violated the obligations under the contract”, that NewJeans can freely continue with its activities because it exists “no reason to file an injunction to terminate the contract”, and those NewJeans “they are not obliged to pay a penalty”.
The five members inform ADOR of the termination of our exclusive contracts since ADOR has violated contractual obligations and has not corrected them within the required period. The termination notice is in the contract and we have all signed the termination document. The notification will take effect immediately upon reaching ADOR on November 29, 2024. Therefore, from that point on the exclusivity agreement will no longer be valid. There is therefore no reason to file an injunction to terminate the contract and we will be able to freely continue operations from 29 November 2024.
Furthermore, the five of us have faithfully fulfilled our obligations under the contract. Since the termination of our contracts is due to ADOR’s breach of contract, we are not obligated to pay any penalties.
—NewJeans
NewJeans’ claims that it does not need to file an injunction or pay penalties have sparked online debates over whether or not NewJeans is legally correct. According to some South Korean legal experts, including the former judge Lee Hyung GonNewJeans can terminate the contract without dispute and their strategy is to “shrewd” a.
Normally, celebrities apply for temporary injunctions if they want to terminate their exclusive contracts. But if that is the case, all their activities will be restricted until the court reaches a conclusion. NewJeans announced the termination without cause, making it a situation where ADOR must file a lawsuit instead. This is a smart strategy. The assertion that termination of the contract without litigation is also invalid is also unfounded. They have sufficient reasons for terminating the contract, unlike HYBE’s unilateral termination of their shareholder contract with Min Hee Jin.
—NewJeans
However, NewJeans’ approach has received mixed reactions from the public. Some netizens say that the group “impulsive” the choice was not thought through and that the members are “titled.”
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Others said NewJeans would have to prove in court that ADOR violated the terms of their exclusive contract to avoid paying the penalties. Likewise, ADOR would have to prove that the company did not breach the contract and/or that NewJeans breached the terms.
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it was clearly stated in their contract that if Ador violates the contract, then NewJeans is free to terminate it without paying any legal fees (and vice versa). since ador failed to correct all violations (paragraph 2) within the 14 day period, newjeans is free to correct it. pic.twitter.com/PLOUm5B3ur
— ☘︎ (@nwjnsbts) November 28, 2024
However, other netizens are expressing their sincere support for NewJeans’ choices and have argued that NewJeans’ decision was not impulsive but rather a decision that they believe was supported by a legal team.
why are these weirdos acting like New Jeans hasn’t had lawyers since all this started? the reason they are confident is because they know Hybe broke the contract first 😭 like? pic.twitter.com/7JHrawUUUV
— ✿ (@haerin1st) November 28, 2024
anyone among these three fandoms who claims to know more about newjeans, exclusive contracts and termination clauses – I guarantee you they DON’T KNOW SHIT about newjeans, exclusive contracts and termination clauses. pic.twitter.com/X6x0izAAPr
— PoppyKPoppie (@PoppyKPoppie) November 28, 2024
The court has already specified that if third parties (e.g., the parent company, other labels) interfere with NewJeans’ entertainment activities and ADOR does not take adequate measures, NewJeans can terminate their exclusivity contract.
(Translation of the Court’s ruling from @juantokki) https://t.co/XrHqK1Oyt7 pic.twitter.com/WG6aY8z2t0— . (@NJBUBBLEGUM) November 24, 2024
What are your thoughts?
NewJeans emergency press conference in brief: 4 key takeaways
