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The Honolulu Advertiser
Posted on: Friday, March 20, 2009

Rain loses $8.1M Hawaii verdict, owes damages for cancellation

By Jim Dooley
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

Rain

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A federal court jury yesterday slammed South Korean pop icon Rain and his former management company with an $8.1 million judgment, finding that they committed fraud and breach of contract when they abruptly canceled an Aloha Stadium concert in 2007.

More than half of the money, $4.8 million, is in punitive damages to be paid to the promoter of the Hawai'i show, Click Entertainment Inc. Rain was found personally liable for half of that amount and his former management company, JYP Entertainment Co. Ltd., is liable for the other half.

The judgment also includes $2.3 million in general damages, of which Rain and JYP must pay $1.7 million. Two other promotion companies, StarM Entertainment and Revolution Entertainment, are liable for the remaining $571,000.

The jury also said Rain and JYP must pay $1 million in civil fraud damages.

Attorney Eric Seitz, who represented plaintiff Click Entertainment and its owner, Seong Su Lee, said outside court that he will move to collect the judgment as soon as possible.

"He's a very talented young man and I'm sorry he got caught up in this," Seitz said of Rain, whose real name is Ji-Hoon Jung.

But the jury found that "there was a fraud perpetrated for a long time and continued to be perpetrated right up to the trial," Seitz said. If the entertainer resists paying the judgment, he risks "losing his career because nobody will touch him," Seitz said.

Attorneys for Rain and JYP left the courthouse in silence and did not comment on the verdict.

Seitz said Rain has been developing a career in films and that failure to make good on the jury verdict could blight his career in this country.

"He has an agent in Los Angeles," Seitz said.

JYP Entertainment also "owns a building in New York City" and Seitz he could seek to recover the jury verdict through litigation there.

Seitz said portions of the damages owed could possibly be repaid through concert appearances by Rain here.

But Click Entertainment owner Lee did not sound enthusiastic about that prospect.

"I do not have such a good impression of him," Lee said through an interpreter outside the courthouse.

"In two years, he has not made any apology" to his fans or former business associates here, Lee said.

Lee noted that Rain is very popular in South Korea and has an international following of fans.

As for the verdict, Lee called it "a very fine decision" and thanked the jury as well as U.S. Senior District Judge Alan Kay, who presided over the trial.

Rain flew to Hawai'i last weekend and testified at the trial Monday, telling the jury he did not know why the concert here was canceled and only learned about the decision after it had been made.

He said he was told the cancellation was caused by safety and security problems with a special stage manufactured in San Diego and shipped to the Islands for the event.

"My part is on the stage performance," Rain testified through an interpreter. "Everything else is arranged by the management team."

Rain and his legal team also blamed the cancellation on StarM Entertainment and Revolution Entertainment, companies that were involved in promoting the concert here and other planned performances on the Mainland.

Those firms were defendants in the suit but did not defend themselves.

The four-man, two-woman federal court jury found StarM and Revolution responsible for $571,000 of the total verdict.

Seitz noted that Rain is also being sued by Mainland promoters of canceled concerts.

Reach Jim Dooley at jdooley@honoluluadvertiser.com.