Apartment association Puškini 11 v OÜ Tellmin: costs left to the defendant after payment and waiver of the claim

The court considered OÜ Tellmin’s appeal against the Viru Maakohus ruling of 08.08.2012. After payment of the debt, the apartment association Puškini 11 waived its claim and the proceedings were terminated; the defendant challenged the award of 417,60 euros in representation costs.

The apartment association Puškini 11 brought a debt recovery claim against OÜ Tellmin. After the amount claimed was paid, the association waived its claim and requested termination of the proceedings, a refund of half the state fee and reimbursement of costs. On 8 August 2012, Viru Maakohus accepted the waiver, terminated the case and ordered the defendant to bear the costs. It awarded 577,37 euros, including 417,60 euros in representation costs and the non-refunded 159,77-euro portion of the state fee. A further 159,78 euros of the fee was to be refunded to the association by the state. OÜ Tellmin appealed against the ruling, seeking removal of the 417,60 euros in representation costs. It considered the dispute straightforward and the costs unnecessary, and referred to its own settlement proposal. The association replied that payment had been made during the proceedings and that preparing submissions and using a representative had been necessary because disagreements continued. The circuit court upheld the ruling. Under the rule it applied, the defendant bears the costs if the claimant waives the claim because it was satisfied after proceedings were brought. The rule on costs where a claim is partly granted within the scope of a proposed settlement did not apply: the proceedings ended through waiver following full payment, rather than a partial determination of the claim. The court found reviewing the file, preparing submissions, analysing objections and the representative’s attendance at the hearing necessary and justified. The appeal against the ruling was dismissed; the costs of that appeal were not reimbursable. The ruling reviews termination and costs; it does not award the debt again.

Uphold the Viru Maakohus ruling of 08.08.2012. Dismiss OÜ Tellmin’s appeal against the ruling. Termination of the proceedings and the first-instance award of 577,37 euros in costs therefore remain in place. The reasons separately state that the costs of this appeal are not reimbursable.