IN A FEW WORDS: Our lawyers assisted an allocation civil company (ACC) in a dispute against a condominium association (CA) concerning unpaid condominium fees.
CONTEXT: Our client is an allocation civil company (ACC) whose purpose includes:
- Acquiring a plot of land;
- Entering into a construction lease on this land with a lessee who agreed to erect a building;
- Dividing this building into units to be allocated to the associates of the ACC upon the expiration of the construction lease, at the dissolution of the company.
With the ACC's corporate purpose fulfilled, the division and amicable liquidation of the company were decided in 2014. However, some associates did not take the necessary steps to withdraw from the ACC. Thus, the ACC became liable for the condominium fees that should have been borne by the non-withdrawing associates.
FACTS: The CA sued the ACC for over 50,000 euros in unpaid fees. In response, we immediately sought a guarantee from the non-withdrawing associates of the ACC. Furthermore, we contested the validity of the CA's fee claims by demonstrating that the CA did not provide a detailed breakdown, by periods, of the amounts due for the concerned units. We also showed that the CA’s claims were not updated, particularly following the withdrawal of two associates from the ACC during the proceedings. The court accepted our arguments and dismissed all of the CA’s claims. It also ordered that the amounts spent on the "necessary recovery costs" stipulated in Article 10-1 of the law of July 10, 1965, be credited back to the ACC’s account and borne by all the associates.
BIGNON LEBRAY'S OPINION: Given the CA’s persistence in seeking the quick settlement of its condominium fees, it was essential to:
- Seek the guarantee of non-withdrawing associates within a warranty claim;
- Verify the validity of the claimed fees to avoid unjustified charges if necessary.
Although this second part of the work can be tedious due to the complexity of the statements provided by condominium associations, it helped avoid a judgment against our client. Strategically, it also gave our client additional time to possibly negotiate the amicable withdrawal of the non-withdrawing associates and regularize their situation. Our role as lawyers is to anticipate the outcomes of judicial proceedings as best as possible to make the most strategic choices that protect our clients' interests.
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