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Financial plan decision invalidated for missing annual report; remaining claims dismissed

Editorial summary

The claimant challenged general meeting decisions on the board and financial plan. The circuit court reversed the finding that all decisions were void, but invalidated approval of the plan: members had not received the required previous year’s report and balance sheet.

Judgment · Tartu Ringkonnakohus · Appeal

Narva linn, Kangelaste prospekt 3 korteriühistu · 80162521

Apartment association meetings and decisionsConvening meetings and advance noticeVoting and representationBudget, management plan and ratesDocuments and informationReporting and review of expenditure
Participants and roles
  • Claimant and appellant — XX
  • Defendant and cross-appellant — Narva linn, Kangelaste prospekt 3 korteriühistu

The dispute and the court’s decision

The claimant XX challenged three decisions of KÜ Kangelaste 3, now Narva linn, Kangelaste prospekt 3 korteriühistu, of 2 July 2010: recalling the board, electing a new board and approving the 2010 financial plan. The first-instance court declared the decisions void. The claimant appealed costs, while the association cross-appealed the finding of voidness. The circuit court found no proof of defective convening. Several days could not automatically be added to delivery of an invitation to a mailbox, and the claimant’s later explanation of receiving only oral notice contradicted the earlier position. The number of signatures on the registration sheet likewise did not prove extra votes for one participant. There was no basis to treat the decisions as void, without legal effect from the outset. Nevertheless, approval of the financial plan was invalidated on a different ground. Members had not received the 2009 report and balance sheet at least two weeks before discussing the new plan. A change of board and its lack of documents did not excuse that failure. The remaining claims were dismissed. The judgment of 11 December 2012 was set aside and replaced with partial success on the claim. The first-instance claim fee was allocated 33% to the association and 67% to the claimant; each side bears its own other first-instance and appeal costs.

Outcome of this decision

The decisions were not all declared void; only approval of the 2010 financial plan was invalidated. The first-instance claim fee was apportioned 33% to the association and 67% to the claimant; each side bears its own other costs in both instances.

Entry into force has not been reverified

Case history