Narva apartment associations Court decisions

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Apartment association / building

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Case 2-16-13377Source: Riigi Teataja ↗

Narva linn, Kangelaste prospekt 44 korteriühistu · 80146002

Contracts and servicesWorks contracts and designQuality and acceptance of worksRepairs and shared propertyRoof and atticDamage and insuranceLeaks and floodingDamage caused during repairsAmount of compensation

How it started · editorial summary

After the contractor’s failed repair, the association engaged another contractor and sought reimbursement.

11.03.2019 · JudgmentViru Maakohus · First instance · № 2-16-13377/118Read act

Separate act page

Defective roof works: recovery of rectification costs

Judgment · Viru Maakohus · First instance

Narva linn, Kangelaste prospekt 44 korteriühistu · OÜ IMHOTEPKOMP · OÜ Alakki · 80146002 · 11482887 ·

Entry into force has not been reverified

Participants and roles: Claimant and customer — Narva linn, Kangelaste prospekt 44 korteriühistu; Defendant and contractor — OÜ IMHOTEPKOMP

How it started · editorial summary

The association sought 1500 euros from a contractor for defective replacement of roof pipes. The court found defects in both the original and warranty works and awarded the full amount claimed.

The dispute and the court’s decision

Narva linn, Kangelaste prospekt 44 korteriühistu, additionally named Korteriühistu KANGELASTE 44, sought 1500 euros from OÜ IMHOTEPKOMP for rectifying defective work. The contractor replaced 17 roof pipes; the work was accepted and paid for. Leaks later appeared. The association notified the defects and the contractor began warranty repairs, but the association stopped them as technically unsuitable and engaged OÜ Alakki. The court assessed an audit, court-appointed expert evidence, testimony and photographs. It found unsuitable components and inadequate sealing that allowed moisture beneath the roof covering. Video of proper technique on another site did not prove it had been used on this building. Both the original work and attempted repair were found deficient. The contractor had been given an opportunity to remedy defects. Absence of the formal record required by the contract did not negate written notices and repairs begun. However, the court excluded the part repaired by another firm before the contractor was notified. Later rectification and audit costs supported compensation. The claim was granted within the 1500 euros requested. Procedural costs were imposed on the contractor, with their amount to be fixed separately.

Outcome of this decision

OÜ IMHOTEPKOMP must pay the association 1500 euros within the amount claimed. It bears its own and the association’s procedural costs, the latter to be fixed separately. Permission to appeal was granted.

Translation of an anonymised, abridged excerpt from Estonian

Grant the claim in full. […] The court grants permission to appeal.

18.10.2019 · JudgmentTartu Ringkonnakohus · Appeal · № 2-16-13377/130Read actAppeal18.10.2019

Separate act page

Kangelaste 44: contractor must reimburse correction of roof defects

Judgment · Tartu Ringkonnakohus · Appeal

Korteriühistu KANGELASTE 44; Narva linn, Kangelaste prospekt 44 korteriühistu · Osaühing IMHOTEPKOMP · 80146002 · 11482887

Entry into force has not been reverified

Participants and roles: Claimant – Korteriühistu KANGELASTE 44; Defendant and appellant – Osaühing IMHOTEPKOMP

How it started · editorial summary

After the contractor’s failed repair, the association engaged another contractor and sought reimbursement.

The dispute and the court’s decision

The circuit court upheld the award of 1 500 euros against Osaühing IMHOTEPKOMP in favour of the apartment association KANGELASTE 44 for remedying roof defects, changing the reasons in part. Korteriühistu KANGELASTE 44 sought 1 500 euros in damages from Osaühing IMHOTEPKOMP after replacement of 17 roof ventilation pipes. The association alleged that the contractor damaged roofing around the pipes, causing leaks, and attempted repairs with bitumen mastic did not cure the defects. Another company was engaged for repairs and a building audit commissioned. The contractor argued that it was not given sufficient time or opportunity to remedy the work and that the expenses were excessive. The county court granted the claim. Tartu Ringkonnakohus upheld the 1 500-euro award, clarifying its legal reasoning and assessment of the amount. Expert materials and witness testimony supported defects in both the original work and attempted repair. Failed remedial work was a fundamental breach of contract. The association therefore did not have to give the contractor yet another additional deadline and could engage another contractor to remedy the defects. The circuit court found 1 143,84 euros for remedial work and 360 euros for the audit justified. The total established was 1 503,84 euros, but the association sought only 1 500 euros and that was awarded. Another company’s later, cheaper estimate did not prove the actual cost of the relevant repairs. Appeal costs were imposed on IMHOTEPKOMP; the county court will quantify them after the judgment becomes final. The judgment confirms the contractor’s compensation obligation, rather than an actual payment to the association.

Outcome of this decision

Dismiss IMHOTEPKOMP’s appeal and uphold the association’s 1 500-euro award. Amend the reasoning in part. The contractor bears appeal costs, to be quantified separately.

Translation of an anonymised, abridged excerpt from Estonian

1. Dismiss the appeal and leave the Viru Maakohus judgment of 11 March 2019 unchanged. Amend the county court judgment’s reasoning in part.

Case 2-18-130679Source: Riigi Teataja ↗

Narva linn, Kivilinna tn 9 korteriühistu · 80021803

Contracts and servicesWorks contracts and designQuality and acceptance of worksPayment, advance payments and refundsRepairs and shared propertyFaçade, windows and balconies

How it started · editorial summary

The design fee dispute depended on the agreed window count, fire safety and the client’s acceptance of the result.

12.07.2019 · JudgmentViru Maakohus · First instance · № 2-18-130679/23Read actFirst instance12.07.2019

Separate act page

A. Daumani 9: designer’s claim for remaining payment dismissed

Judgment · Viru Maakohus · First instance

OÜ NARVA EHITUSPROJEKT · Narva linn, A. Daumani tn 9 korteriühistu · 11002901 · 80021803

Entry into force has not been reverified

Participants and roles: Claimant, designer — OÜ NARVA EHITUSPROJEKT; Defendant, client — Narva linn, A. Daumani tn 9 korteriühistu

How it started · editorial summary

The design fee dispute depended on the agreed window count, fire safety and the client’s acceptance of the result.

The dispute and the court’s decision

The court dismissed OÜ NARVA EHITUSPROJEKT’s claim for the remaining facade design payment from the apartment association A. Daumani tn 9 because the work did not meet agreed terms. OÜ NARVA EHITUSPROJEKT sought 2 016 euros outstanding for a facade reconstruction design, late-payment interest and 40 euros in recovery costs from Narva linn, A. Daumani tn 9 korteriühistu. The association had paid a 504 euro advance but refused the final design and ended the contract. The disputed term was the number of basement windows: the client insisted on 15, while the designer invoked fire safety requirements and supplied a version with more. The court found 15 windows an agreed essential term despite the number not being separately stated in the signed contract. This followed from the initial design, correspondence and explanations. The design also had to meet mandatory safety requirements. The first version lacked the necessary smoke extraction analysis. The later version took fire safety requirements into account but departed from the agreed window count without client consent. Neither version therefore complied with the contract. Administrative approval alone did not replace compliance with contractual terms. The association objected in time and refused acceptance. The court treated its termination notice as lawful withdrawal from the contract for breach. The designer also withheld permission to use the work until full acceptance, so there was no basis to pay for a separately delivered part. The claim was dismissed in full, with costs allocated to the designer and the amount set later. The court did not assess another provider’s design or the lawfulness of its approvals.

Outcome of this decision

Dismiss OÜ NARVA EHITUSPROJEKT’s claim in full. The claimant bears all court costs, with the amount determined after entry into force.

Translation of an anonymised, abridged excerpt from Estonian

1. Dismiss OÜ NARVA EHITUSPROJEKT’s debt claim against Narva linn, A. Daumani tn 9 korteriühistu.

Case 2-16-129462Source: Riigi Teataja ↗

Narva linn, Kangelaste prospekt 47b korteriühistu · 80145356

Contracts and servicesWorks contracts and designQuality and acceptance of worksPayment, advance payments and refundsRepairs and shared propertyFaçade, windows and balconiesApartment association bills, payments and debtsPayment accounting and set-offLate-payment interest and consequences of delayOrganisation and funding of repairs

How it started · editorial summary

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.

09.11.2017 · JudgmentViru Maakohus · First instance · № 2-16-129462/71Read act

Separate act page

Kangelaste 47b and Mirstart OÜ: defective works, costs and set-off

Judgment · Viru Maakohus · First instance

Mirstart OÜ · KÜ Kangelaste 47b · 11234391 · 80145356

Entry into force has not been reverified

Participants and roles: claimant and counterclaim defendant — Mirstart OÜ; defendant and counterclaimant — KÜ Kangelaste 47b

How it started · editorial summary

Defects justified withholding payment and recovery of repair costs, with the final result determined by set-off.

The dispute and the court’s decision

KÜ Kangelaste 47b (now — Narva linn, Kangelaste prospekt 47b korteriühistu). Mirstart OÜ sought the outstanding price of construction works and late-payment interest from KÜ Kangelaste 47b. The association counterclaimed for the cost of remedying defects. The cases were joined after proceedings on earlier default judgments were reopened. The works included renewal of the plinth and paving and installation of canopies. The court found the defective cladding proved by photographs: tiles had fallen off extensively soon after handover. Acceptance did not prevent reliance on defects. The documents as a whole showed timely knowledge by the contractor, which failed to remedy them within a reasonable time. Third-party repair costs of 5544 euros were found necessary and reasonable. Lawful withholding of the price balance was temporary; the court did not find a price reduction or effective withdrawal from the contract. Once the cost claim was allowed, the basis for withholding ended, so principal of 3039.27 euros* was upheld. Late-payment interest of 683.21 euros was refused because lawful withholding was not late performance. Further late-payment interest was also refused because the mutual claims were set off. The court allowed the counterclaim and applied set-off, awarding the association 2500 euros* against Mirstart OÜ. Each party bears its costs. Payment of that award was not established.

Outcome of this decision

The principal claim was allowed for 3039.27 euros* without late-payment interest; following the counterclaim and set-off, 2500 euros* was awarded to the association against Mirstart OÜ.

Translation of an anonymised, abridged excerpt from Estonian

5. Each party shall bear its own costs.

14.06.2018 · JudgmentTartu Ringkonnakohus · Appeal · № 2-16-129462/83Read actAppeal14.06.2018

Separate act page

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

Judgment · Tartu Ringkonnakohus · Appeal

KÜ Kangelaste 47b · Mirstart OÜ · 80145356 · 1123439

Entry into force has not been reverified

Participants and roles: contractor Mirstart OÜ – claimant and defendant to the joined demand, appellant; apartment association – customer, defendant and claimant on the joined demand, appellant; parties’ representatives and expert XX

How it started · editorial summary

The dispute and the court’s decision

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.

Outcome of this decision

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.

Translation of an anonymised, abridged excerpt from Estonian

4. Allow Mirstart OÜ’s appeal.

Case 2-10-62881Source: Riigi Teataja ↗

Narva linn, A. Puškini tn 11 korteriühistu · 80170839

Repairs and shared propertyRoof and atticContracts and servicesWorks contracts and designQuality and acceptance of worksPayment, advance payments and refundsDamage and insuranceDamage caused during repairsCause and proof of damageAmount of compensation

How it started · editorial summary

The association sought compensation for defective roof repairs; the contractor relied on having followed the agreed design. After an expert examination was ordered, the parties agreed on a smaller amount and instalments.

12.10.2012 · Order approving a settlementViru Maakohus · First instance · № 2-10-62881/47Read actFirst instance12.10.2012

Separate act page

Puškini 11 and OÜ Lonstrong: settlement approved over damage following roof repairs

Order approving a settlement · Viru Maakohus · First instance

KÜ Puškini 11 · OÜ Lonstrong · 80170839 · 10632379

Entry into force has not been reverified

Participants and roles: claimant – KÜ Puškini 11; defendant – OÜ Lonstrong; parties’ legal and contractual representatives XX; expert XX

How it started · editorial summary

The dispute and the court’s decision

The apartment association Puškini 11 brought a claim for 55 453,72 euros against OÜ Lonstrong following roof repairs. It relied on defects in the roofing and the damage they caused. The contractor initially disputed the claim, saying that the works followed the customer’s design documents, specifications and supervision instructions. During the proceedings, the parties raised the issue of an expert examination. The source records the contractor’s advance payment for it and receipt of an expert report. The order does not disclose the expert’s conclusions. The parties then agreed a settlement at the hearing instead of pursuing a decision on the merits. The defendant acknowledged the claim to the agreed extent and undertook to pay 31 955,82 euros. Of this, 19 955,82 euros was due by 15 November 2012, with the remaining 12 000 euros payable in twelve monthly instalments of 1 000 euros from December 2012 to November 2013. The association waived its remaining claims. The agreement resolved all disputes arising from the works contract of 9 April 2007. The court found no obstacle to approval, confirmed the agreed terms and terminated proceedings by its order of 12 October 2012. Each party bears its own costs; half the court fee, 2 236,91 euros, is to be returned to the association. The parties waived an appeal. This was an agreed resolution, rather than an independent judicial determination of the full amount of damage. The court did, however, examine the documentary evidence collected.

Outcome of this decision

Terminate proceedings and approve the settlement: OÜ Lonstrong is to pay the association 31 955,82 euros on the agreed schedule, and the association waives the remainder of its claims. All disputes under the contract of 09.04.2007 are resolved; each party bears its own costs. Reimburse the association 2 236,91 euros in court fees. The parties waived an appeal.

Translation of an anonymised, abridged excerpt from Estonian

1. Terminate proceedings on the claim by KÜ Puškini 11 against OÜ Lonstrong for damages of 55 453.72 euros. […] 31 955 (thirty-one thousand nine hundred and fifty-five) euros and 82 cents. The claimant waives the remaining claims. […] 5. The parties waive the right to appeal the court ruling.