Ruling: Higher Regional Court strengthens rights of building owners

  • 2 years ago

Building owners are not obligated to provide craftsmen with a so-called construction craftsmen's insurance. This was recently decided by the Higher Regional Court (OLG) Zweibrücken (Case No. 2 O 315/19). In the case in question, a dispute arose between a couple of building owners and a craftsman's company about the quality of the construction work performed. The couple refused to pay the remaining amount of 8,000 euros.

The construction company did not want to accept this and demanded a security deposit such as a bank guarantee for the outstanding sum. The couple refused this as well. The construction company then took the matter to the Landau Regional Court (LG) and won the case. The Landau Regional Court ordered the couple to take out a builder's risk insurance policy. The owner couple appealed against this decision. With success.

According to the OLG, the crafts company's claim does not exist because this is a consumer construction contract. There is no consensus in case law as to whether a consumer construction contract also includes the awarding of contracts to various construction companies. However, it could make no difference whether a contractor provided all services from a single source or whether the builders awarded the services individually. Moreover, property developers could otherwise circumvent the consumer protection regulations by excluding individual services. The OLG allowed the appeal, which was also lodged. The case is therefore now before the Federal Court of Justice.

Source: olgzw.justiz.rlp.de/ZZ: 2 O 315/19
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