Legal costs in condominium litigation: how they are shared

The legal costs of condominium litigation normally fall on all owners and are shared according to the thousandths (millesimi) of ownership, like other management expenses. When the meeting authorizes a case or the manager defends an action over the common parts, the lawyer's fee and the court costs are among the common expenses. The exception is the dissenting owner who dissociates from the litigation under Article 1132 of the Italian Civil Code, separating liability for the economic consequences in case of an unfavorable outcome.

The general allocation criterion

The costs of litigation brought or suffered in the common interest are condominium expenses in all respects and follow the thousandths (millesimi) of ownership, unless they concern a specific table. The manager records them in the statement of accounts and shares them among the participants. The expense must be supported by a resolution or fall within the manager's powers, otherwise it may be challenged by the owners.

Dissent from litigation under Article 1132

Article 1132 allows an owner who dissents from the decision to bring or resist litigation to separate their liability, notifying the manager of the dissent within thirty days of learning of the resolution. If the litigation ends with an unfavorable outcome, the dissenting owner is not liable to the other owners for the losing costs and has a right of recourse for what they had to pay the prevailing counterparty.

• Dissent must be notified to the manager in writing
• The deadline is thirty days from learning of the resolution
• The dissenting owner separates internal liability for the negative outcome
• Toward the prevailing counterparty they remain bound, subject to recourse

What happens if the condominium wins

If the litigation is favorable to the condominium, the judge normally orders the losing counterparty to reimburse the legal costs. In this case the actual burden on the owners is reduced, but sums not recovered from the loser remain with the community. Article 1132 provides that even the dissenting owner, if they benefited from the favorable outcome, must contribute to the costs that could not be recovered from the losing party.

What happens if the condominium loses

In case of defeat the condominium must bear both its own legal costs and those awarded to the counterparty. These costs are shared among the owners according to the thousandths (millesimi), with the exception of the dissenting owner who dissociated in time. A prudent estimate of costs at the resolution stage, with a cap and a risk assessment, helps owners decide knowingly whether to undertake the litigation.

Recovering costs from defaulting owners

The allocated legal costs become condominium contributions charged to the individuals. If an owner does not pay their share, the manager may act to recover on the basis of the approved allocation statement, with the tools provided for unpaid contributions. Clear accounting of the litigation and its costs is essential to make the debt enforceable and to prevent challenges.

Accounting for litigation costs clearly

Distinguishing litigation costs, linking them to the resolution and sharing them correctly among owners requires accounting order. AmministraPro lets you record legal costs, link them to the case and share them by thousandths (millesimi) in the statement of accounts: the features are described on the /funzioni page and the plans for your practice can be compared on /prezzi.