Judgment: Administrator of a WEG sued for damages

  • 4 years ago

The former manager of a condominium owners' association (WEG) of a residential complex with 334 apartments is accused by the condominium owners of not having fulfilled her managerial duties (AZ V ZR 101/19). The owners of the residential complex demand a compensation payment of 219,000 euros from the former manager. This claim is due to the fact that the manager failed to repair damages and defects on balconies of the residential complex and thus to comply with the maintenance of the common property. The costs for the renovation work have since risen significantly.

The apartment owners of the residential complex, which was built in the 1960s and consists of four buildings, pointed out to the manager as early as 2000 that the balconies attached to the facade showed damage that urgently needed to be checked. Accordingly, the former administrator commissioned an expert to prepare an expert opinion. At the owners' meeting in 2001, the owners were informed that balcony renovation with epoxy resin would be sufficient to repair the damage. In the years between 2001 and 2010, individual renovation works amounting to 200,000 euros were carried out. The topic of balcony renovation was no longer discussed in the owners' meetings until 2009.

According to the Local Court and the Regional Court, it cannot be proven that the manager did not fulfill her managerial duties. The owners' action was dismissed. The Federal Court of Justice (BGH) overturned the judgment of the Local and Regional Courts and ordered an examination of the recommendations made by the expert in his 2001 report. If a comprehensive balcony renovation was recommended, the property manager can be accused of a breach of her contractual obligations. Accordingly, it was obliged to inform the apartment owners about both the expert opinion and the renovation recommendations. Even if there is no recommendation for a comprehensive balcony renovation, she can be accused of a breach of duty. Because of the frequency and persistence of the damage, it should have prepared a proper resolution to examine the cause of the damage.

Source: BGH
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