Litigation Risk from Property Defects, Construction-Related Neighborhood Issues, and Other Matters
First written in FY2016. 4 of 10 entries say "Worsened", first in FY2020. Latest entry: FY2026.
Urbanet Corporation moved to the "Worse" side of this theme in 2019.
1 other company's latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「As a measure to address these risks, the Group maintains property and casualty insurance against potential defects, accidents and other contingencies.」
The Group specified insurance coverage as a measure addressing property defects, neighborhood disputes, non-conformity liability and claims related to its property-management business. - FY2025WorsenedAnnual report
「The Group takes every possible measure to ensure quality control. However, if a serious problem is found in a property sold by the Group, the Group may be required, as the seller, to assume non-conformity liability under the contract even where the direct cause is not attributable to the Group, and litigation and other claims may arise as a result.」
In addition to the existing litigation risks relating to neighborhood issues, property defects and the management business, the disclosure explicitly states that the Company may bear non-conformity liability under the contract as the seller even where the cause is not attributable to the Company. Insurance coverage was also listed as a response measure. - FY2023WorsenedAnnual report
「In its condominium management and rental management businesses, litigation and other claims may arise from complaints by residents and others, rent arrears and other causes. Depending on the nature, outcome and handling of such litigation and other matters, reputational risk may arise.」
In addition to litigation risks associated with development and construction, the disclosure explicitly identifies claims and rent arrears in the management business, as well as reputational risk. - FY2022WorsenedAnnual report
「More than 25 years have passed since the Company was established, and defects may arise in properties previously sold by the Group. In its condominium management and rental management businesses, litigation and other claims may also arise from complaints by residents and others, rent arrears and other causes.」
In addition to neighborhood issues arising from development and construction, the scope of litigation risks now includes defects in previously sold properties, resident complaints in the condominium and rental management businesses, and rent arrears. - FY2021MitigatedAnnual report
「The Company currently has litigation pending in 1 project and is responding appropriately while consulting with its legal counsel.」
The number of ongoing litigation matters decreased from 2 projects in the previous fiscal year to 1 project. Increased dialogue with neighboring residents and other measures were also listed as responses. - FY2020WorsenedAnnual report
「The Company currently has litigation pending in 2 projects and is responding in good faith while consulting with its legal counsel.」
The number of ongoing litigation matters increased from 1 project in the previous fiscal year to 2 projects. - FY2019MaterialisedAnnual report
「The Company currently has litigation pending in 1 project and is responding in good faith while consulting with its legal counsel.」
The disclosure now explicitly states that litigation has arisen in 1 project, whereas litigation risk was previously described only as a potential future risk. - FY2018RestatedAnnual report
「The Group is making corporate efforts to avoid litigation and other occurrences by establishing a compliance committee and conducting awareness-raising activities for employees. However, litigation and other claims may arise in the future from defects in properties sold by the Group or complaints from neighboring residents and others concerning noise, radio interference, sunlight obstruction, changes to the landscape and other issues associated with construction.」
Describes measures to avoid litigation and reconfirms the risk of litigation arising from property defects and neighborhood issues. - FY2017RestatedAnnual report
「The Group is making corporate efforts to avoid litigation and other occurrences by establishing a compliance committee and conducting awareness-raising activities for employees. However, litigation and other claims may arise in the future from defects in properties sold by the Group or complaints from neighboring residents and others concerning noise, radio interference, sunlight obstruction, changes to the landscape and other issues associated with construction.」
Adds measures to avoid litigation while reiterating future risks arising from property defects and neighborhood issues. - FY2016First statedAnnual report
「Accordingly, as of the date of submission of this document, there are no facts indicating that any litigation has been filed. However, litigation and other claims may arise in the future from defects in properties sold by the Group or complaints from neighboring residents and others concerning noise, radio interference, sunlight obstruction, changes to the landscape and other issues associated with construction.」
States that there was no litigation as of the submission date and indicates future risks relating to quality and neighborhood relations.