Construction payments: settlement with reciprocal obligations
Editorial summary
The contractor sought money from the association while some joint-sealing work remained unfinished. The court approved an agreement on payment and completion of the works and terminated proceedings.
OÜ Sirenadi · 11387640
Narva linn, Kangelaste prospekt 11 korteriühistu · 80170749
Participants and roles
- Claimant and contractor — OÜ Sirenadi
- Defendant and client — Narva linn, Kangelaste prospekt 11 korteriühistu
The dispute and the court’s decision
OÜ Sirenadi brought a claim for restitution of unjust enrichment against Narva linn, Kangelaste prospekt 11 korteriühistu, named in the order as KÜ Kangelaste 11. The dispute ended in a settlement concerning payment for and completion of works under a contract of 28 July 2010: sealing the building’s joints between panels remained unfinished.
The association undertook to pay 5752.04 euros in equal monthly instalments of 958.67 euros, with the first due on 15 November 2012 and an overall deadline of 1 May 2013. OÜ Sirenadi undertook to finish the remaining work between 1 and 31 May 2013; the association would pay a further 3195.58 euros for that work within 15 days after signing the acceptance record.
The contractor waived the late-payment interest claimed in the action. Late instalments would attract interest of 0.1% per day on the overdue amount; late completion would require the contractor to pay a contractual penalty of 0.1% per day on 3195.58 euros. The association also undertook to reimburse a 159.77-euro court fee by 15 November 2012; each side bears its other costs.
The court found the settlement lawful and capable of performance, approved it and terminated proceedings without deciding the original dispute on its merits. The parties shortened the deadline for appealing the order to three days from service. Actual performance and entry into force have not been reverified.
Outcome of this decision
The court approved reciprocal obligations to pay 5752.04 euros by instalments, complete the works and pay 3195.58 euros after acceptance, with agreed consequences for delay and reimbursement of a 159.77-euro fee. Proceedings were terminated.