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Business partnership turns sour
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Posted on Jul 13 2004
The joint owners of a company that deals with garment waste have fallen out of each other’s favor, with one suing the other for allegedly using company assets to start a rival company.
Yung Ka Wah, a 50-percent shareholder in YCL Co., filed a suit against partner Hyun Joon Chung with the U.S. District Court on Friday, charging Hyun with usurpation of corporate opportunity, breach of fiduciary duty, breach of contract, failure to provide accounting, and conversion.
According to Yung, YCL maintained a contract with the CNMI government for the handling of garment factory waste, and although the contract had expired, the company was still operating under the conditions.
Yung currently resides in Hong Kong while Hyun is living on Saipan. Yung issued Hyun full power of attorney for the handling of YCL’s interests. Hyun allegedly used company resources in founding his new company, R&C, which directly competes with YCL.
When the government issued a Request For Proposal for the contract that YCL was operating under, Hyun failed to submit a proposal before the May 26, 2004 deadline. Hyun did, however submit a proposal for his new company and sent Yung a letter on May 21,2004, of his termination notice.
Yung is asking the court for the payment of compensatory damages and full disclosure of the financial dealings of YCL under Hyun.
