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A1 Properties (Sunderland) Limited v Tudor Studios RTM Company Limited

31 January 2023
[2023] UKUT 27 (LC)
Upper Tribunal
A group of tenants wanted to take over managing their building. They forgot to tell one owner who didn't actually help manage the building. The court said it was okay to forget because that owner wasn't involved in managing the building.

Key Facts

  • •A1 Properties (Sunderland) Limited (appellant) is an intermediate landlord of parts of Tudor Studios, a student accommodation building, but has no management responsibilities.
  • •Tudor Studios RTM Company Limited (respondent) sought to acquire the right to manage Tudor Studios under Part 2 of the Commonhold and Leasehold Reform Act 2002.
  • •The respondent failed to serve a claim notice on the appellant.
  • •The First-Tier Tribunal (FTT) held that the failure to serve the appellant did not invalidate the respondent's claim.
  • •The appellant appealed to the Upper Tribunal (Lands Chamber).

Legal Principles

Whether non-compliance with statutory requirements for acquiring a right precludes acquiring that right depends on the legislature's intention.

Natt v Osman [2014] EWCA Civ 1520

Section 79(6) of the Commonhold and Leasehold Reform Act 2002 requires a claim notice to be served on each landlord of all or part of the premises.

Commonhold and Leasehold Reform Act 2002, s. 79(6)

Failure to serve a claim notice on an intermediate landlord with no management responsibilities does not invalidate the notice.

Elim Court RTM Company Limited v Avon Freeholds Limited [2017] EWCA Civ 89

Outcomes

The appeal is dismissed.

The Upper Tribunal held that the Court of Appeal's decision in Elim Court established that the absence of management responsibilities is key. The failure to serve the appellant, an intermediate landlord with no management responsibilities, did not invalidate the claim, regardless of whether the failure was deliberate or inadvertent.

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