Shopping centers may face litigation for unjust utility charges

The Supreme Court has ruled that the common system of collecting and charging operating fees in shopping centers is illegal and constitutes unfair competition. The ruling opens the way for tenants to claim back improperly charged fees, with claims potentially running into tens of millions of zloty, according to Joanna Domoń-Kulas, partenr at Causa Finita Szczepanek and Partners law firm.

The complicated system obliges tenants to pay not only rent and utilities but also a share of the common costs of maintaining and managing the property, including snow removal, heating and security. The Court found that the system favored large, international retailers and was often shouldered by small, local businesses. The decision could lead to a new conflict between tenants and shopping center owners.

Source: WBJ