gotopgi

【Business Law】Temporary Court Orders Facilitate Essential Maintenance of Solar Equipment in Lease Di..

2024-04-17 Attorney An-Kuo Lai


In Taiwan, the lease agreements for installing solar photovoltaic equipment on the roofs of rented buildings typically last 20 years. During this period, the lessee has to maintain the equipment through cleaning, inspections, and repairs. These maintenance tasks often require entering the building or accessing areas beyond the roof, necessitating cooperation from the landlord. While maintaining the equipment is straightforward when relationships are harmonious, disputes can arise if the landlord and tenant fail to reach an agreement, potentially leading the landlord to refuse maintenance access. In such cases, resolving the conflict through legal action becomes necessary, however judicial proceedings can be time-consuming and prolonged delays in maintenance can compromise both the efficiency and safety of the solar equipment.
 
To address these difficulties, civil procedure law includes a provision for "temporary dispositions." This mechanism allows courts to preliminarily examine the legal relationship between disputing parties and issue a temporary order to provisionally resolve the dispute before the conclusion of the litigation. This is governed by Articles 1 and 2 of Section 538 of the Code of Civil Procedure, which allows such dispositions to prevent significant harm, avoid imminent danger, or in similar urgent situations, provided the legal relationships in dispute can be definitively determined by the lawsuit.
 
Recently, a case involving a barn owner who rented out his roof for solar panel installation led to disputes after the equipment was installed. The barn owner was unwilling to allow the tenant access for maintenance. Before making a final judgment, the court issued a temporary order compelling the barn owner to permit the tenant to access the barn every three months to perform maintenance tasks including cleaning modules, inspecting and repairing roof module circuits, checking ground boxes and high voltage power, and managing tree shading.
 
The court deemed it necessary to allow tenant maintenance access before reaching a final decision for several reasons:
1. Without regular maintenance, the risk of short circuits or leakage due to dirty panels or shading could increase, potentially causing fires and significant damage to both the equipment and the barn.
2. The solar equipment itself and the derived economic benefits are substantial, as is the economic value of the pigs bred in the barn, which are closely related to the equipment installed on the barn’s roof.
3. Allowing the tenant access to the barn’s roof for essential maintenance ensures the continuous operation and profitability of the equipment, with the main cost to the barn owner being the increase in preventive measures during maintenance. Conversely, denying access could lead to equipment damage and significant losses for both parties.
 
Time is a crucial factor in business, and the meticulous requirements of court procedures naturally entail time consumption. In facing similar cases, solar power operators can consider submitting a suitable bond to the court and making use of temporary orders to perform necessary maintenance on solar equipment without unduly hindering the landlord. This approach offers a viable way to maintain essential operations and mitigate potential disputes.
 
[This article provides a generalized overview of the discussed topic and does not constitute legal advice or conclusions, nor does it necessarily reflect the stance of our firm or our clients.]