Kangelaste 47b: appeal court rejected association’s repair correction costs and awarded payment to contractor

The appeal court rejected the association’s repair reimbursement claim and retained its obligation to pay the contractor, adding late-payment interest. Evidence of defects at the alleged time and notification was insufficient.

The circuit court allowed Mirstart OÜ’s appeal and dismissed the apartment association Kangelaste 47b’s appeal. After review, the association was ordered to pay the contractor 3 039,27* euros in outstanding fees, 1 017,61 euros in accrued late-payment interest and continuing statutory late-payment interest. The association’s claim for the cost of correcting works was dismissed. The contractor repaired the plinth and lintel and installed two canopies. The association alleged that facing panels began detaching and that the contractor had been notified but did not remedy the defects. It hired another company and sought reimbursement, taking account of the unpaid part of the original work. The contractor disputed the defects at the stated time and proper notification. The first-instance court granted the contractor’s monetary claim without interest, recognised the association’s claim and set them off. The association appealed only the allocation of costs; the contractor appealed the award to the association and refusal of interest. The circuit court assessed the evidence differently. Photographs from September 2016 did not establish the state of works in summer 2015: by the time of photography, the new contractor could already have started dismantling. A copy of a letter did not prove receipt. Board minutes without the contractor representative’s signature proved neither participation nor notification of defects. A new paid contract for filling joints also did not prove an agreement to remedy defects in the former work. It contained no such reference. The association had not proved defects at the alleged time, notification or a deadline for remedy; the contractual procedure for engaging an expert had also not been followed. The set-off and earlier award in favour of the association were therefore set aside. Costs at both levels were imposed on the association, to be quantified separately by the county court. Dismissal of the association’s claim concerns proof of the conditions for liability, rather than an established absence of any defects in the repairs.

Grant Mirstart OÜ’s claim and dismiss the association’s claim. Award 3 039,27* euros in principal, 1 017,61 euros in accrued late-payment interest and statutory late-payment interest on principal from the judgment date until payment against the association. Allow the contractor’s appeal and dismiss the association’s. The association bears costs at both levels, to be quantified separately.