Allocation of payments between current charges and an earlier settlement

The court respected the payer’s stated allocation and distinguished principal from late-payment interest.

Korteriühistu Kreenholmi 30 (now — Narva linn, Kreenholmi tn 30 korteriühistu). Korteriühistu Kreenholmi 30 claimed building management arrears and late-payment interest from XX. The association allocated some payments to an older settlement debt. The court found that payment descriptions clearly distinguished current apartment charges from compliance with the earlier court decision. Giving effect to the payer’s allocation, it treated the principal claimed as paid but allowed accrued late-payment interest. On 15 April 2016, Tartu Ringkonnakohus changed only the allocation of first-instance costs: XX must reimburse the association 397 euros. The findings on payment of principal and the award of late-payment interest remained unchanged.

Only late-payment interest was awarded. The principal was not awarded again because of the proven payments. Initially, each party bore its own costs. On 15 April 2016, Tartu Ringkonnakohus changed only that part: XX must reimburse the association 397 euros in first-instance costs; each party bears its own appeal costs.