Capital contribution refund: new association had not completed division

Narva linn, Kreenholmi tn 9 korteriühistu, named KÜ ÜHTEHOIDEV in the judgment, sought 39,642 kroons in contributions paid by its building’s owners to KÜ KREENHOLMI 9 plus. The owners had formed a separate association and assigned their alleged repayment claims to it. The claimant argued that new association membership and independent management ended the old membership and the basis for retaining the funds. The defendant agreed to transfer capital after a lawful division but denied that payment was already due. The court held that separating a building from a multi-building association and transferring assets required the division procedure, including an agreement and resolutions, approval and registration. The documents and register did not establish completion. Independently creating a legal entity did not replace that procedure, so there was no present right to payment. The court dismissed the claim and the request for a new hearing: representatives had been notified, and time for written submissions did not mean the hearing was postponed. All costs were allocated to the claimant. On 18 November 2010 Tartu Ringkonnakohus subsequently dismissed the appeal, upheld refusal and allocated costs in both instances to the claimant.