Company debt: personal claim against director dismissed
Editorial summary
The association sought OÜ Alelis’s debt personally from its director XX for failure to file for bankruptcy. The court refused because the necessary grounds for personal liability were unproved.
Narva linn, Joala tn 11 korteriühistu · 80189885
OÜ Alelis
Participants and roles
- Narva linn, Joala tn 11 korteriühistu — claimant, creditor
- XX — defendant, shareholder and director of OÜ Alelis
- OÜ Alelis — debtor under the earlier judgment
The dispute and the court’s decision
Narva linn, Joala tn 11 korteriühistu held a judgment for 14,342.62 kroons against OÜ Alelis but received no money in enforcement. It sought that amount and interest personally from XX, the company’s shareholder and director, alleging failure to file for bankruptcy. The defendant denied permanent insolvency and breach of duty. XX directed an outside company, rather than the association.
The court dismissed the claim. The unsuccessful enforcement certificate, accounts and payment-default information did not prove permanent insolvency, breach of the bankruptcy-filing duty, lack of the required care or reduction of net assets to the statutory level. Without proof of the necessary circumstances, the alleged loss could not be imposed on XX.
All costs were allocated to the association. On 11 February 2011 Tartu Ringkonnakohus subsequently dismissed its appeal and upheld refusal, finding the conditions for liability to a creditor, including causation, unproved. Costs in both instances remained with the association.
Outcome of this decision
The personal claim against XX for 14,342.62 kroons and interest was dismissed. The association bears its own and all the defendant’s litigation costs.