Dismissal of the claim against Defendant 1 (Respondent) due to late notice of defects

Facts

[X. AG] and [Y. AG] (Appellants) filed a claim against [Z. AG] (Defendant 1, Respondent). The Appellants accuse the Respondent of having breached its contractual obligations in connection with the slope stabilization for the [Q.] development. The Commercial Court of the Canton of Zurich dismissed the claim against the Respondent, as the Appellants had forfeited their rights to claim defects under Art. 368 CO.

Considerations

The Federal Supreme Court upheld the decision of the Commercial Court. It stated that the lower instance had rightly affirmed the completion and delivery of the work by the Respondent. The assumption that the Appellants had not notified the Respondent of the alleged defects in a timely manner was also in accordance with federal law. The…