EN 
UA 
Introduction
In modern residential construction practice, situations increasingly arise where numerous construction defects and violations are discovered after a building is commissioned, which developers refuse to fix, citing various circumstances. The Disputes Law Firm successfully represented the interests of a condominium owners' association (COA) in a complex case involving damage recovery from a developer for unresolved construction defects. This case serves as an exemplary demonstration of a comprehensive approach to protecting homeowners' rights and can serve as a practical guide for lawyers dealing with similar situations.
Case Background
In December 2020, residents of a newly constructed premium-class residential complex in the capital's suburb decided to establish a COA.
On December 14, 2020, the founding meeting was held, where the association's charter was approved and authorization for its state registration was granted.
The residents made this decision consciously, understanding the need to create an effective mechanism for building management and protection of their rights as co-owners.
Problem Identification
Building Handover Procedure
On March 16, 2021, the official handover procedure of building documentation from the developer to the COA took place. During this procedure, a thorough inspection of the entire property complex and adjacent territory was conducted.
On the same day, both parties signed a defect report, which became a key document in the subsequent legal proceedings. The report detailed the following issues:
- Incomplete children's playground and sports area
- Missing project-specified trash bins and street benches
- Areas with sunken paving stones
- Incomplete paving work and flower bed arrangement near the building facade
- Cracks in the building facade
- Incomplete electrical work in the basement
- Interior wall damage caused by the construction crew
- Construction debris in entrances and on the complex grounds
Pre-trial Settlement
Attempt at Voluntary Resolution
The developer provided written commitment to address all identified defects by May 31, 2021, as documented in the report. The document also included an important provision stating that the developer's representative guaranteed the elimination of defects within the specified timeframe, barring force majeure circumstances.
Approaching the Developer
After the deadline passed with no action from the developer, on September 28, 2022, we prepared and sent an official pre-trial settlement proposal. This document proposed signing a voluntary compensation agreement and set a reasonable deadline for response. However, the developer left this appeal unanswered.
Preparation for Legal Proceedings
Building the Evidence Base
Understanding the need for strong evidence, we helped the client take the following steps:
- Conduct photo and video documentation of all existing defects
- Collect all available project documentation
- Obtain technical assessments from specialists regarding specific identified issues
- Document all attempted communications with the developer
Expert Assessment
On December 20, 2023, a contract was signed with a reputable expert institution to conduct a comprehensive construction and technical assessment. The experts performed a detailed investigation of the property and on February 12, 2024, provided a professional conclusion that established the exact cost of necessary repair and construction work – 1,069,891 hryvnias.
Legal Proceedings
In preparing the lawsuit, we relied on a comprehensive analysis of legislation and judicial practice. Special attention was paid to substantiating all necessary elements of the offense:
- The developer's wrongful conduct was proven through their failure to fulfill their documented obligations to fix the defects.
- The presence of damages was confirmed by expert opinion, which detailed the cost of necessary work to fix each identified defect.
- The causal link between the wrongful conduct and damages was evident, as it was the developer's failure to fulfill their obligations that led to the COA's need to independently address the defects.
- The developer's fault was confirmed by the absence of objective reasons for non-performance and ignoring pre-trial settlement proposals.
During the court proceedings, we emphasized that some defects had already been fixed by the COA, including:
- Completion of electrical work in the basement (cost: 273,590 hryvnias)
- Painting of damaged interior walls (cost: 3,381 hryvnias)
- Removal of construction debris (cost: 14,800 hryvnias)
These facts were supported by corresponding work completion acts and payment documents.
Court Decision
After reviewing all provided evidence and legal arguments, the court decided to partially satisfy the claims. The developer was ordered to pay:
- 792,920 hryvnias in primary damages
- 11,893.50 hryvnias in court fees
- 15,563.57 hryvnias in expert assessment costs
- 37,056.11 hryvnias in legal assistance costs
Conclusions and Recommendations
Key Success Factors
- Timely and proper documentation of all defects during building acceptance
- Engagement of professional technical specialists during defect identification
- Documentary evidence of all pre-trial settlement attempts
- Professional assessment to determine damage amounts
- Comprehensive legal substantiation of claims
Recommendations for Similar Cases
- Pay special attention to the quality of acceptance certificates and defect reports
- Document all communications with the developer in writing
- Maintain all technical and project documentation
- Engage independent experts to assess construction quality and defects
- Document all expenses related to independent defect resolution
This case demonstrates that effective protection of condominium owners' rights is possible with proper legal work organization at all stages: from defect identification to court proceedings. The key to success is a systematic approach, proper documentation of all case circumstances, and professional legal support.
