Liability for expenditure and accounting: a new compensation judgment

KÜ Jaaniku 6 — the name in the judgment — sought compensation from XX for unjustified expenditure and restoring its accounting records. The defendant had been a board member and separately provided accounting services. XX disputed the loss, the necessity of expenditure and the assessment of documents handed over. Both sides challenged Viru Maakohus’s judgment of 16 January 2014. The circuit court assessed board-member liability separately. Types of expenditure had to be based on the financial plan or a general meeting decision, including subsequent approval. The court therefore examined not only the plan but also proof and approval of the expenditure. Some disputed costs were justified. The claim for 49.53 euros in tax interest was rejected because a causal link to the defendant’s breach had not been proved. On this basis, the court assessed compensation at 520.58 euros*. The second part concerned a separate accounting-services contract. The court classified it as a contract for work, not employment. Failure to prepare and hand over systematic accounting registers was supported by documents, and the cost of restoring the records, 319.56 euros, was awarded on a contractual basis. The court did not separately determine possible liability for the same accounting failures in the capacity of board member. The earlier judgment was set aside and replaced: the claim was granted in part, with a total award of 840.14 euros. Costs in both instances were apportioned 78% to the defendant and 22% to the association. The judgment does not establish actual payment.