Conflicts of co-owners – court ruling

Yesterday, the district court upheld a lawsuit by our client, who sued a co-owner of a property to file a joint property management bill.

Several years ago, the co-owners agreed that the management of the joint properties would be carried out by one of them alone. After several years, our client noticed some irregularities in the running of the board. Initially, lawyers from our firm tried to get clarification and a detailed report on the property management through negotiations, but this did not work.

Ultimately, lawyers from our firm filed a lawsuit to compel the submission of a report on real estate management for the entire period of its operation. The claim was based on Art. 208 of the Civil Code. In the lawsuit and at the hearing, lawyers from our firm accurately argued that the other co-owner was in charge and that she did not submit an account of the management to our client during the entire period. Despite the counter-arguments of the defendant’s attorneys, who pointed out, that the co-owners did not enter into a written

agreement to entrust management of the properties, making the defendant not bound to file an account of the management, the Court upheld the claim.

In its oral reasons for the decision, the court agreed with the arguments raised by our lawyers and stressed that only the fact of management of real estate is subject to examination in these proceedings. Irrelevant to the outcome of the case are the circumstances and basis for the entrustment of the management, as well as whether other co-owners had access to the property during its administration. The court ordered the defendant to submit a written account of the board for the entire period of its administration. The account is to include a statement of activities undertaken and receipts and expenditures with the necessary accounting evidence.