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Principal upheld, earlier interest refused because of the association’s conduct

Editorial summary

OÜ Rosehill challenged charges for non-residential premises and late-payment interest. The court upheld the principal but found the earlier interest claim contrary to good faith: the association itself had created the impression that special contractual terms applied.

Judgment · Tartu Ringkonnakohus · Appeal

Narva linn, Kangelaste prospekt 3 korteriühistu · 80162521

OÜ Rosehill · 10972543

Apartment association bills, payments and debtsDebt claimsLate-payment interest and consequences of delayBills and justification of chargesApartment association meetings and decisionsConvening meetings and advance noticeApartment association board and managementAuthority and representation
Participants and roles
  • Defendant and appellant — OÜ Rosehill
  • Claimant — Narva linn, Kangelaste prospekt 3 korteriühistu

The dispute and the court’s decision

KÜ Kangelaste 3, now Narva linn, Kangelaste prospekt 3 korteriühistu, sought management charges from OÜ Rosehill for January 2010 to November 2012. The company relied on an agreement providing a special tariff for non-residential premises and challenged the meeting decisions and interest. The first-instance court awarded principal and interest; the company appealed. The circuit court upheld the principal of 15,896.65 euros. Charges were for the general meeting to determine; the chair’s authority to represent the association did not confer power to change one member’s tariff. The agreement was void in that respect. The court separately explained that the three-month period for challenging meeting decisions did not bar a defence of voidness, but the company had not explained or proved a specific defect in convening the meeting. The tariff was based on floor area, not actual consumption of services. The conclusion on interest was different. Its absence from earlier invoices did not by itself make the claim contrary to good faith. However, the association had itself made a special agreement and, through inconsistent conduct, reinforced the company’s understanding that the general tariffs did not apply to it. Previously accrued interest was therefore refused. For further delay, the court awarded 0.07% per day on the unpaid principal only from the judgment’s entry into force until full payment. The appeal succeeded in part: interest and costs were varied, with 62.3% of costs in both instances allocated to the company and 37.7% to the association. Actual payment and entry into force have not been reverified.

Outcome of this decision

OÜ Rosehill’s principal debt of 15,896.65 euros was upheld and previously accrued interest was refused. Interest of 0.07% per day was awarded only from entry into force on unpaid principal until full payment; costs in both instances were apportioned 62.3% to the company and 37.7% to the association.

Entry into force has not been reverified

Case history