IGNOS Successfully Defends Korean Direct Investment Company in Construction Dispute over Manufacturing Facility at Surabaya High Court

Jakarta, 30 October 2024 – IGNOS successfully defended its client, a Korean direct investment company, in a construction dispute over a manufacturing facility at the Surabaya High Court.

The case involved a construction dispute concerning a manufacturing facility in Probolinggo, East Java. The contractor alleged that the client, as the project owner, had breached the contract by unilaterally terminating the agreement and failing to make the necessary payments. The Mojokerto District Court ruled in favor of the contractor as the plaintiff, ordering the project owner to pay compensation and rejecting the counterclaim submitted by the project owner.

In response, the project owner appointed IGNOS to represent them in filing an appeal against the decision of the Mojokerto District Court. The Surabaya High Court accepted the appeal petition submitted by the project owner and overturned the Mojokerto District Court's decision. In its legal considerations, the Surabaya High Court found that the construction agreement for the manufacturing facility had been terminated by mutual consent, and the subsequent termination letter issued by the project owner was legally justified, as the contractor had failed to perform the work as required.

Furthermore, the Surabaya High Court accepted the counterclaim filed by the project owner, citing breaches by the contractor related to the construction of the manufacturing facility and the fence. Consequently, the contractor was ordered to pay compensation to the project owner.

This successful outcome marks a significant achievement for IGNOS, reaffirming its commitment to providing professional, high-quality, and integrity-driven legal services to its clients.