Narva apartment associations Court decisions

The dismissal judgment was set aside; the association is liable for part of the damage, while the owner’s contribution to its occurrence reduced compensation.

If P&C Insurance AS paid OÜ Roburink 16 292,44 euros for damage to the interior finishes of non-residential premises following a radiator leak on 22 August 2013 and sought reimbursement from the apartment association Linda 1. The county court dismissed the claim, but the circuit court set aside the judgment and granted the claim in part. The appeal court found a valid insurance contract and transfer of the claim to the insurer proved. Central heating radiators are shared property. Having taken over management of the entire system on 6 June 2013, the association had to inspect its condition and ensure access to valves in an emergency. Reliance on the summer season and the recent takeover of management did not remove those duties. The court linked their breach to the damage. The court accepted the restoration works calculation: the association proved earlier flooding, but not that its consequences were included in the submitted estimate. However, OÜ Roburink had altered the heating with deviations from the design, had not ensured the necessary supervision and cooperation with the association, and access to the valves was absent. The court therefore reduced compensation by 70%. The association was ordered to pay 4888 euros* in damages and 1065,35 euros in accrued late-payment interest. From 3 June 2017, interest accrues at the statutory rate until payment of the 4888 euros*; all late-payment interest awarded together is capped at 4888 euros*. Costs at both levels are borne 70% by the insurer and 30% by the association; the county court will quantify them after the judgment becomes final. The court applied the legislation in force when the damage arose. Use of this judgment in a new dispute requires attention to later legislative changes and the circumstances of that case.

Grant the claim and appeal in part: award 4888 euros* in damages, 1065,35 euros in late-payment interest, and further statutory late-payment interest on 4888 euros* from 3 June 2017 until performance against the association. Total late-payment interest is capped at 4888 euros*. Costs are borne 70% by the insurer and 30% by the association; monetary amounts are determined separately.