German real estate company takes legal action against tenants' union
Fotocredit: Hallo München / Romy Ebert-Adeikis
German real estate company Dawonia has taken legal action against tenants who are defending themselves against excessive ancillary costs with the support of the NGO "Initiative für eine Mietergewerkschaft e.V.". As the tenants are standing up for their rights and making grievances public, Dawonia's reaction raises concerns about the extent to which it is using SLAPP tactics, i.e. using the law against critical voices.
Accusations against Dawonia
Fifty-six tenants in Munich and Würzburg, supported by the Tenants' Association and the Würzburg Housing Initiative, demanded access to receipts and proof of activity at the end of 2023 in view of non-transparent utility bills and modernization costs by the Dawonia housing group. They have withdrawn their direct debit authorizations and are demanding transparent documentation of all ancillary costs - and are thus exercising their right of retention. The reason for this step is the suspicion that Dawonia is charging unlawful fees and is unable to provide sufficient proof of to justify its fees.
Attempted intimidation through legal action?
The housing company responded to a corresponding press release from the tenants' union by taking legal action: As the “Initiative für eine Mietergewerkschaft e.V.” explains, four days after the points of criticism and demands were published, the board of the initiative received a warning letter from a lawyer. In it, the association is asked to retract critical statements. By signing the cease-and-desist declaration, the tenants' union would also have undertaken to pay a "reimbursement of costs" of almost 2,600 euros to Dawonia.
Dawonia's immediate legal action against the tenants' public criticism raises questions - and bears the clear hallmarks of SLAPP tactics.
Strategic Lawsuits Against Public Participation (SLAPP) uses the law to suppress public criticism through legal action. SLAPPs aim to intimidate critical voices, and have a chilling effect on civil society discourse and the critical public. The abbreviation SLAPP comes from the US: overpowering legal and natural persons who want to silence journalists or activists with legal "slaps on the wrist". The procedure is not always completely unfounded in legal terms, but it always has an intimidating effect.
In 2022, the European Union launched the Directive "on the protection of persons engaging in public participation against manifestly unfounded or abusive legal proceedings", which will inquire EU member states to introduce national legislation against SLAPPs later this year. Initiatives that defend themselves against housing companies in the face of potentially unlawful billing will also be able to benefit from this legislation.
Tenants stand firm - and achieve partial success
Dawonia's attempt to silence the tenants' union with legal threats and claims for reimbursement of costs underlines the challenges that citizens face when they take action against financially powerful adversaries. It is one more striking example of the ongoing struggle between citizens seeking to assert their rights and companies seeking to stifle critical voices through legal intimidation.
Undeterred by the legal threats, the tenants' association remains steadfast. Maximilian Rathke, the second chairman of the association, commented: "If a multi-million dollar corporation feels compelled to take such action against the first German tenants' union, then that gives us pause for thought. If Dawonia's aim was to intimidate us and silence us, it was wrong. We will continue to organize Dawonia tenants."
And indeed, the tenants in the north of Munich who are in dispute with Dawonia over modernization work have already achieved a partial success. Dawonia reversed a rent increase that was seen by some as a concession due to the tenants' resistance. However, the company stuck to its position and emphasized that the refund was more a gesture of goodwill than recognition of a legal obligation. It remains to be seen whether further legal action and other intimidation will follow.
Here you can find the press release of the Initiative für eine Mietergewerkschaft e.V. from 01.02.2024 (PDF, in German).
A local Munich newspaper also reported on the case here: https://www.tz.de/muenchen/stadt/hallo-muenchen/muenchen-schwabing-wohnung-anlage-sanierung-arbeiten-baustelle-miete-erhoehung-dawonia-92783082.html
Click here for the European Commission's draft directive: https://eur-lex.europa.eu/legal-content/DE/TXT/?uri=CELEX%3A52022PC0177&qid=1671550772105
And here is an article by the German Federal Bar Association on the agreement reached in the European trilogue on the directive: https://www.brak.de/newsroom/news/eu-erzielt-einigung-im-kampf-gegen-missbraeuchliche-klagen/