Joseph Darryl Douglas v RMB 102 Limited & Anor
[2023] UKUT 207 (LC)
Brunswick Mansions Management Company Limited v Triplerose Limited
1 February 2023
[2023] UKUT 31 (LC)
Upper Tribunal
A leaseholder fought their building's management company over unfair service charges. They won, and the judge said the management company shouldn't get back the money it spent fighting the case because they were involved in the dispute even though it wasn't technically their responsibility.
Key Facts
- •Appeal against First-tier Tribunal (FTT) orders under section 20C of the Landlord and Tenant Act 1985 and paragraph 5A of Schedule 11 to the Commonhold and Leasehold Reform Act 2002.
- •Dispute concerned the reasonableness and payability of service charges.
- •FTT ordered that the management company's costs in the proceedings would not be recoverable from the leaseholder.
- •Leaseholder successfully challenged insurance, entry system, and management fees.
- •Management company arranged insurance despite freeholder's contractual responsibility.
- •Management company participated in FTT proceedings regarding insurance costs.
Legal Principles
A tenant may apply for an order that costs incurred by the landlord in proceedings are not to be regarded as relevant costs in determining service charges.
Landlord and Tenant Act 1985, section 20C
A tenant may apply for an order reducing or extinguishing liability to pay administration charges for litigation costs.
Commonhold and Leasehold Reform Act 2002, Schedule 11, paragraph 5A
"Landlord" includes any person who has a right to enforce payment of a service charge.
Landlord and Tenant Act 1985, section 30
Outcomes
Appeal dismissed.
The management company actively participated in the FTT proceedings regarding insurance costs, incurring legal costs in opposing the leaseholder's challenge. The FTT's order preventing recovery of these costs was deemed appropriate given the leaseholder's success and the management company's interest in the insurance costs.
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