Successfully Defended the Largest Security Solutions Provider in Korea, S-1 Corporation, in a KRW 68.4 Billion Claim Involving a Fire Accident at a Major Data Center Operated by a Samsung Affiliate
2022.08.06.
A fire broke out in Samsung SDS’s Gwacheon Internet Data Center building, which housed and operated server computers of major Samsung Group affiliates and telecommunications service providers like KT and LG Uplus. Plaintiff Samsung SDS alleged a financial loss of KRW 68.4 billion and claimed that amount against the construction and maintenance companies of the building as damages. Yulchon represented Defendant S-1, the maintenance company, and obtained a favorable judgment from the trial court.
Yulchon's strategy focused on (i) effectively demonstrating that S-1 fulfilled all obligations under the building maintenance contract, including building management, accident prevention, and notification, by analyzing the factual background before and after the fire in minute intervals; and (ii) asserting that the outbreak and spread of the fire could not be attributed to S-1, supported by a thorough analysis of the fire's cause and burn patterns.
As a result, the court accepted almost all of Yulchon's arguments and dismissed Samsung SDS’s claims against S-1 entirely.
This case is significant because its outcome could have significantly impacted S-1's reputation and trustworthiness, currently ranked number one in the provider of total solutions in the facility and building managements market. Additionally, had the court accepted Samsung SDS’s claims, even partially, it could have led to additional lawsuits regarding contribution claims among the defendants, resulting in further litigations with stakes as high as tens of billions of Korean won. Thanks to Yulchon’s professional and efficient representation, S-1 was absolved of any liability, avoiding subsequent legal disputes involving damages and contribution claims among the defendants.