Pähklimäe tn 2: limitation of an insurer’s claim after water damage

The insurer sought compensation for 2014 damage from owner XX or alternatively from the Pähklimäe tn 2 association; both pleaded limitation.

AB „Lietuvos draudimas“, acting through its Estonian branch, sought reimbursement of an insurance payment from owner XX or alternatively from Narva linn, Pähklimäe tn 2 korteriühistu. The claim concerned water damage on 12 January 2014 and a broken inlet valve that the insurer considered common property. Statutory late-payment interest from 31 January 2023 and costs were also sought. Both respondents pleaded limitation and disputed responsibility. The insurer argued that payment transferred the injured owner’s statutory claim, subject to a ten-year period. The owner also relied on preventive measures taken, while the association denied breaching its duties. The court agreed that the claim did not arise from the insurance contract. However, transfer preserved the injured owner’s legal position in relation to the association. The court treated those relations as analogous to transactions and applied a three-year, rather than ten-year, limitation period. It linked commencement to payment on 30 January 2014, expiry to 30 January 2017 and filing to 3 April 2020. The application against both respondents was therefore dismissed. The court also discussed conditions for compensation involving common property, but limitation was the decisive ground. The insurer bears costs; their amount is to be determined separately after entry into force of the principal ruling.

Dismiss the application against owner XX and the Pähklimäe tn 2 association. Order AB „Lietuvos draudimas“ to bear costs, to be quantified separately after the principal ruling enters into force.