The hearing for SM Entertainment's lawsuit against TVXQ / DBSK / Tohoshinki members Jaejoong, Micky Yoochun and Xiah Junsu (Jaechunsu) took place earlier today. SM Entertainment representatives opened up by stating that the treatment of TVXQ isn't bad, their contracts are fair if you compare them to other agencies in Korea. They also reiterated the fact that the main issue here isn't about TVXQ's division of income. SM representatives also pondered on why the trio signed a separate contract with Japan's AVEX Entertainment. Representatives of JaeChunSu countered by arguing that both the division of income and length of the contract is unjust. Judge Choi Sung Jun presiding over the case questioned both parties on the possibility of a settlement if adjustments were made to the contract (Income Division would be more equal and Contract terms would be shortened). SM Entertainment responded that a settlement could be possible. However, the representatives of JaeSunChu were a bit more skeptical stating, "The 3 TVXQ members no longer trust SM Entertainment and they don't want to work with SM Entertainment in the future." They did leave a door open however stating, "If SM Entertainment's intentions are truly for a settlement then we will relay this information back to the TVXQ trio and report back." The courts will review all evidence presented and reach a verdict soon. Another trial date is set for the end of the month. Thanks to pabo_sarang for the tip.