The Supreme Court has decided to lose a damages suit filed by Shin Dong-joo, former vice chairman of Lotte Holdings in Japan, against the company in connection with the dismissal of his board of directors at Hotel Lotte.
The Supreme Court rejected the appeal on May 30, saying that Hotel Lotte and Busan Lotte Hotel had no obligation to compensate Shin for 880 million won in compensation.
Shin was notified of the decision to dismiss him from the board of directors at a meeting of temporary shareholders of Hotel Lotte and Busan Lotte Hotel in September 2015.
According to a notice to convene a shareholders' meeting, Director Shin violated his duty of loyalty and principle (caution as a good manager) to the company, spread false information, obstructing the company's business and damaging the company's credibility.
In response to the decision by Hotel Lotte and other company, Shin filed a compensation suit worth 880 million won against the company, claiming that the company incurred damages by dismissing him before its board member's term expired without proper reason.
However, the court rejected Shin's lawsuit one after another and ruled in favor of Hotel Lotte and Busan Lotte Hotel. The court explained that the reason for the company's dismissal is justifiable because Shin did not faithfully carry out his duties.
Judging that the original ruling was right, the Supreme Court upheld Shin's defeat without further deliberation.