Puškini 12 and Swedbank P&C Insurance AS: settlement after enforcement of a default judgment and reopening of proceedings

The insurer’s case against the association, reopened after a default award, ended in an agreement for lower compensation and repayment of funds previously received.

Swedbank P&C Insurance AS sought compensation for property damage from the apartment association Puškini 12. According to the history set out in the ruling, a default judgment in February 2012 awarded 3 291,33 euros in damages and 543,24 euros in state fees. It was enforceable immediately; the circuit court later reopened the proceedings by a ruling. After reopening, the parties chose to settle the dispute. Under the agreement, the association acknowledged damage of only 700 euros and assumed 125 euros in state fee costs. The insurer undertook to return 2 466,33 euros of the funds received from the association within ten days after the ruling approving the settlement entered into force. This is a separate repayment obligation under the agreement, rather than a new amount of damages. The parties confirmed that they had no further claims within the settlement and agreed to bear their own remaining costs. They waived further appeals. The court found that the settlement reflected the participants’ wishes and interests, approved it and terminated the proceedings by its ruling of 6 March 2013. It separately ordered the state to refund the insurer 271,62 euros, half the state fee originally paid. The initial default award and the final settlement terms have different meanings: the final agreed compensation is not 3 291,33 euros. The act does not establish the full actual amount of damage following an adversarial determination of every argument. The copy is marked as entering into force on the day it was made; this does not confirm actual repayment or subsequent performance.

Terminate the proceedings and approve the association’s acknowledgement of 700 euros in damage and 125 euros in state fee costs. The insurer is to return 2 466,33 euros to the association within ten days after the ruling enters into force. The parties bear their remaining costs; refund the insurer 271,62 euros, half the state fee. The participants waived appeals.