Litigation against 大覚 for construction contract payments and damages for defects

「The Company had filed a petition with the Supreme Court to accept its appeal on 22 April 2019, but was notified on 3 March 2020 of the Supreme Court's decision not to accept the appeal. As a result, the Osaka High Court judgment ordering the Company to pay damages to 大覚 became final. In March 2020, the Company paid a total of ¥2,756 million, comprising the ¥2,664 million provision for litigation losses recognized in the previous consolidated fiscal year and ¥92 million in default damages recognized as an extraordinary loss in the current consolidated fiscal year, bringing the litigation to an end.」

「Provision for litigation losses - 73」

「Provision for litigation losses - 46」

「Subsequently, 大覚 appealed the first-instance judgment to the Osaka High Court on 11 March 2013. On 12 April 2019, the Osaka High Court issued a judgment ordering the Company to pay 大覚 ¥1,356 million in damages, ¥519 million received from the foreclosure sale of real property owned by 大覚 pursuant to the provisional enforcement declaration attached to the first-instance judgment, and default damages on each of these amounts. The Company considers the judgment unacceptable and, on 22 April 2019, filed a petition with the Supreme Court to accept its appeal. Although the Company is confident that its arguments are justified, it has recognized a reasonably calculated amount based on the second-instance judgment as a provision for litigation losses from the standpoint of maintaining financial soundness.」

「Subsequently, 大覚 appealed the first-instance judgment to the Osaka High Court on 11 March 2013, seeking ¥3,459 million. On 23 May 2017, it filed a motion in the appellate proceedings to amend the relief sought, changing the damages claimed from the Company to ¥6,041 million as its primary claim and ¥6,199 million as its alternative claim. It also sought ¥2,938 million in damages that it alleged it incurred when the Company conducted foreclosure proceedings against real property owned by 大覚 pursuant to the provisional enforcement declaration attached to the first-instance judgment. The appellate proceedings have now been concluded. Judgment is scheduled for 12 April 2019.」

「Subsequently, 大覚 appealed the first-instance judgment to the Osaka High Court on 11 March 2013, seeking ¥3,459 million, and the appeal remains pending. On 23 May 2017, 大覚 filed a motion in the appellate proceedings to amend the relief sought, changing the damages claimed from the Company to ¥6,041 million as its primary claim and ¥6,199 million as its alternative claim. It is also seeking ¥2,938 million in damages that it alleges it incurred when the Company conducted foreclosure proceedings against real property owned by 大覚 pursuant to the provisional enforcement declaration attached to the first-instance judgment. The Company will continue to pursue the appeal so that its arguments are accepted by the appellate court.」

「In addition, on 23 May 2017, 大覚 filed a motion to amend the relief sought in the appellate proceedings, increasing its damages claim against the company to ¥6,041 million as its primary claim and ¥6,199 million as its alternative claim. It is also seeking ¥2,938 million in damages that it alleges it incurred as a result of the company initiating foreclosure proceedings against real estate owned by 大覚 based on the declaration of provisional execution in the first-instance judgment. The company intends to continue responding in the appellate proceedings so that its arguments will also be upheld on appeal.」

「The appellate proceedings remain pending. In addition, on 23 May 2017, 大覚 filed a motion to amend the relief sought in the appellate proceedings, increasing its damages claim against the company to ¥6,041 million as its primary claim and ¥6,199 million as its alternative claim. It is also seeking ¥2,938 million in damages that it alleges it incurred as a result of the company initiating foreclosure proceedings against real estate owned by 大覚 based on the declaration of provisional execution in the first-instance judgment.」

「大覚 subsequently appealed the first-instance judgment to the Osaka High Court on 11 March 2013, with a claim of ¥3,459 million, and the appellate proceedings remain pending. In addition, on 23 May 2017, 大覚 filed a motion to amend the relief sought in the appellate proceedings, increasing its damages claim against the company to ¥6,041 million as its primary claim and ¥6,199 million as its alternative claim. It is also seeking ¥2,938 million in damages that it alleges it incurred as a result of the company initiating foreclosure proceedings against real estate owned by 大覚 based on the declaration of provisional execution in the first-instance judgment. The company intends to continue responding in the appellate proceedings so that its arguments will also be upheld on appeal.」

「In addition, on 23 May 2017, 大覚 filed a motion to amend the relief sought in the appellate proceedings, increasing its damages claim against the company to ¥6,041 million as its primary claim and ¥6,199 million as its alternative claim. It is also seeking ¥2,938 million in damages that it alleges it incurred as a result of the company initiating foreclosure proceedings against real estate owned by 大覚 based on the declaration of provisional execution in the first-instance judgment.」

「大覚 subsequently appealed the first-instance judgment to the Osaka High Court on 11 March 2013, with a claim of ¥3,459 million, and the appellate proceedings remain pending. In addition, on 23 May 2017, 大覚 filed a motion to amend the relief sought in the appellate proceedings, increasing its damages claim against the company to ¥6,041 million as its primary claim and ¥6,199 million as its alternative claim. It is also seeking ¥2,938 million in damages that it alleges it incurred as a result of the company initiating foreclosure proceedings against real estate owned by 大覚 based on the declaration of provisional execution in the first-instance judgment.」

「However, on 11 March 2013, 大覚 appealed the first-instance judgment to the Osaka High Court. The company intends to continue responding in the appellate proceedings so that its arguments will also be upheld on appeal.」

「The company filed an action with the Osaka District Court on 7 January 2010 seeking payment of the outstanding ¥1,581 million in construction contract consideration for the condominium project “Otsukyo Station Place,” which it had undertaken from 大覚 Co., Ltd. (hereinafter, “大覚”). Meanwhile, 大覚 had filed an action against the company seeking damages totaling ¥3,791 million, alleging that the property contained major defects. The two actions were consolidated and heard together through court proceedings, and the Osaka District Court handed down its first-instance judgment on 26 February 2013. The judgment largely upheld the company’s claim against 大覚 for construction contract consideration, excluding approximately ¥10 million in repair costs and other amounts, while dismissing 大覚’s claim. However, on 11 March 2013, 大覚 appealed the first-instance judgment to the Osaka High Court. The company will continue to respond in the appellate proceedings so that its arguments will also be upheld on appeal.」

「The company filed an action with the Osaka District Court on 7 January 2010 seeking payment of the outstanding ¥1,581 million in construction contract consideration for the condominium project “Otsukyo Station Place,” which it had undertaken from 大覚 Co., Ltd. (hereinafter, “大覚”). Meanwhile, 大覚 had filed an action against the company seeking damages totaling ¥3,791 million, alleging that the property contained major defects. The two actions were consolidated and heard together through court proceedings, and the Osaka District Court handed down its first-instance judgment on 26 February 2013. The judgment largely upheld the company’s claim against 大覚 for construction contract consideration, excluding approximately ¥10 million in repair costs and other amounts, while dismissing 大覚’s claim. However, on 11 March 2013, 大覚 appealed the first-instance judgment to the Osaka High Court. The company will continue to respond in the appellate proceedings so that its arguments will also be upheld on appeal.」

「The company filed an action with the Osaka District Court on 7 January 2010 seeking payment of the outstanding ¥1,581 million in construction contract consideration for the condominium project “Otsukyo Station Place,” which it had undertaken from 大覚 Co., Ltd. (hereinafter, “大覚”). Meanwhile, 大覚 had filed an action against the company seeking damages totaling ¥3,791 million, alleging that the property contained major defects. The two actions were consolidated and heard together through court proceedings, and the Osaka District Court handed down its first-instance judgment on 26 February 2013. The judgment largely upheld the company’s claim against 大覚 for construction contract consideration, excluding approximately ¥10 million in repair costs and other amounts, while dismissing 大覚’s claim. However, on 11 March 2013, 大覚 appealed the first-instance judgment to the Osaka High Court. The company will continue to respond in the appellate proceedings so that its arguments will also be upheld on appeal.」

「The company filed an action with the Osaka District Court on 7 January 2010 seeking payment of the outstanding ¥1,581 million in construction contract consideration for the condominium project “Otsukyo Station Place,” which it had undertaken from 大覚 Co., Ltd. (hereinafter, “大覚”). Meanwhile, 大覚 had filed an action against the company seeking damages totaling ¥3,791 million, alleging that the property contained major defects.」