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The Panevėžys Regional Court, acting as an appellate authority, has issued a final ruling in a civil dispute between residential property buyers and a real estate development company. The court found that the company delivered a technically deficient building that failed to meet construction regulations and was unsafe for use, and is therefore liable for all losses incurred by the buyers.

Evidence and expert findings revealed a drastic discrepancy between the construction work and the original design. It was determined that materials weaker than specified were used for the roof structures, resulting in a 70 mm sag in the roof ridge. Experts emphasized that due to insufficient structural rigidity, there was a genuine risk of roof collapse, which the buyers were forced to rectify urgently at their own expense.

It was also established that no vapor barrier was installed in the walls or the roof. In a timber-frame house, this technological violation leads to moisture accumulation, impairs thermal insulation properties, and causes wooden elements to rot, directly reducing the building's longevity and value.

The company sought to evade liability by claiming that the buyers damaged the building themselves by installing a solar power plant on the roof, and further alleged that the buyers were aware of the defects at the time of purchase. However, the court dismissed these arguments as groundless. Forensic examination confirmed that the structural deformations were caused by construction defects prior to the installation of the solar plant. Additionally, the court noted that the buyers are not construction experts and could not have identified latent structural defects during a visual inspection, whereas the seller, as a professional developer, withheld this information despite having data regarding the defects before the transaction.

The company also argued that the plaintiffs had missed the statute of limitations, claiming the buyers knew of the defects in July 2022, thus making the March 2024 claim exceed the shortened 6-month limit. However, the court clarified that while the purchase agreement was signed in November 2021, the dispute concerned latent structural elements subject to a 10-year warranty period under the Law on Construction. The court ruled that the buyers only objectively realized the true extent of the defects and the emergency state of the building in October 2023, following a specialized expert evaluation. Upon receiving the findings, they promptly filed a new claim and initiated legal proceedings within the statutory timeframe. It was concluded that the buyers defended their rights consistently and promptly.

The Regional Court amended the lower court's decision, which had previously denied a portion of the damages. The court held that the aggrieved parties are entitled to full indemnification to be restored to the position they would have occupied had the company delivered a high-quality home.

The Panevėžys Regional Court modified the lower court’s award of 35,676.96 EUR. The Regional Court found that the court of first instance had unjustifiably denied a portion of the funds, and therefore increased the final sum by more than 14,000 EUR to a total of 49,927.72 EUR.

The court of first instance had only awarded funds for roof repairs. The Regional Court additionally awarded 8,501.77 EUR for future losses related to installing vapor barriers in the exterior walls, as this was recognized as necessary work to prevent structural rot. The court also noted that the buyers are not VAT payers, so all repair costs must be awarded including VAT, as this represents their actual financial burden. Furthermore, expenses for expert evaluations, cost estimation, and pre-litigation legal claims were deemed reasonable and necessary to assess the damage and determine the cause of the defects.

According to the ruling of the Panevėžys Regional Court, the developer must not only compensate nearly 50,000 EUR in damages but also pay 5 percent annual interest from the date the case was filed until the judgment is fully satisfied. The company is also ordered to reimburse the buyers' legal costs for both the court of first instance and the appeal, totaling 18.5 thousand EUR.

The ruling of the Panevėžys Regional Court entered into force on the day of its pronouncement.

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