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AllowedFirst-tier Tribunal (Property Chamber)·

Correction of Decision on Excluding Costs from Service Charges

Case No.

📌 In brief

The First-tier Tribunal corrected its decision to exclude certain costs from service charge calculations. This involved revising the original ruling to ensure that the costs incurred by the respondent were not included in future service charge determinations.

⚖️ Legal holding

A tenant is entitled to have certain costs excluded from service charge determinations under specific statutory provisions.

Topics

service chargescosts exclusion

Provisions

Landlord and Tenant Act 1985 s.20CCommonhold and Leasehold Reform Act 2002 Schedule 11 para.5A

📖 Technical summary

The Tribunal corrected its decision regarding the costs incurred by the respondent in proceedings related to service charges.

📜 Headnote Official document

The Tribunal corrected its decision regarding the exclusion of costs incurred by the respondent in proceedings related to service charges under sections 20C of the Landlord and Tenant Act 1985 and paragraph 5A of Schedule 11 to the Commonhold and Leasehold Reform Act 2002.

📚 Full judgment Official document

OUTCOME: Allowed

© CROWN COPYRIGHT

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : LON/00BK/LAC/2020/0016 (FVHREMOTE) Property : Flat 1B, 22.23 [ADDRESS] [POSTCODE] Applicant : [redacted] : [COUNSEL] of Counsel Respondent : [redacted] : [COUNSEL] of Counsel Type of application : For the determination of the liability to pay and reasonableness of service charges (s.27A Landlord and Tenant Act 1985) Tribunal member(s) : Judge Professor Robert Abbey Mr [NAME] RIBA (Professional Member)

Date of original decision Date of correction : 29 March 2021 13 April 2021

RULE 50 CORRECTION OF DECISION

1. In paragraph (6) of the original decision it was stated that “The tribunal further determines that it is just and equitable in the circumstances for an order to be made under section 20C of the Landlord and Tenant Act 1985 that 100% of the costs incurred by the applicant in connection with these proceedings should not be taken into account in determining the amount of any service charge payable by the tenants.”. This was in error because the applicant made a section 20C application, but of course in respect of the respondent’s costs (as lessor).

2 2. To correct this error the Tribunal applies Rule 50 of the of The Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013 S.I. 2013 No. 1169 (L. 8) and substitutes the words set out below for the incorrect wording set out above. The same applies to paragraph 40 of the original decision. Furthermore, In the original decision the Tribunal did not expressly deal with the applicant’s application for an order under Schedule. 11, paragraph 5A of Commonhold and Leasehold Reform Act 2002. This was meant by the Tribunal to be covered by paragraph (6) and the above clause is therefore amended again as follows to cover both errors, “The tribunal further determines that it is just and equitable in the circumstances for an order to be made under section 20C of the Landlord and Tenant Act 1985 and paragraph 5A of Schedule 11 to the Commonhold and Leasehold Reform Act 2002 that 100% of the costs incurred by the respondent in connection with these proceedings should not be taken into account in determining the amount of any service or administration charge payable by the tenant”.

3. Finally paragraph 24(m) of the decision should read “unspecified ‘Professional fees 01/10/2020 – 01/20/2020 [no invoice provided], £760.80” and not relating to a Fresh Management fee £1500.

4. To correct these errors the Tribunal applies Rule 50 of the of The Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013 S.I. 2013 No. 1169 (L. 8). Therefore, clause (6) of the original decision and 24(m) should read as set out in the latter part of paragraphs 2 and 3 above. Name: Prof [NAME]: 13 April 2021

📊 How courts decide similar cases

Among 12 similar decisions in this collection:

A snapshot of this collection — not a prediction of your case's outcome.

⚖️ What tends to weigh in cases like this

✅ Tends to be accepted

  • The tribunal determined that 100% of the respondent's costs should not be included in service or administration charges.
  • The tribunal found it fair and reasonable to exclude the respondent's costs from service charges.
  • The tribunal decided to include the applicant's request for an order under Schedule 11, paragraph 5A of the 2002 Act.
  • The tribunal corrected an error regarding "Professional fees" which had been mistakenly identified as a "Fresh Management fee".

Patterns observed in similar cases in this collection — every case is unique.

❓ Frequently asked questions

What did this decision decide?

It decided to correct the original decision to exclude certain costs from service charge calculations.

Who was involved?

The tenant and the landlord were involved.

How did the court decide, and why?

The court decided to correct the original decision to ensure compliance with relevant statutory provisions.

Which laws or rules were applied?

Sections 20C of the Landlord and Tenant Act 1985 and paragraph 5A of Schedule 11 to the Commonhold and Leasehold Reform Act 2002 were applied.

What was the argument that mattered most?

The argument that mattered most was the need to accurately apply the statutory provisions regarding cost exclusions.

Was the decision for or against the person who brought the case?

The decision was for the person who brought the case.

What does this mean for someone in a similar situation?

Someone in a similar situation may be able to exclude certain costs from their service charge calculations.

What evidence or documents mattered?

The original decision and the statutory provisions were the primary evidence considered.

Can a decision like this be appealed?

Decisions like this can typically be appealed to a higher court.

Is it worth getting a solicitor for a case like this?

It is always recommended to seek advice from a qualified solicitor for such cases.

Official source: First-tier Tribunal (Property Chamber) headnote and full judgment reproduced from the court's public records. View on the official source ↗Summary, holding, technical summary and questions: produced by Artificial Intelligence based on the official headnote and judgment. These are VadeLab’s own material and are not the work of the Court.This decision was issued by the First-tier Tribunal (Property Chamber) and is reproduced from its published records. VadeLab is not affiliated with, and this page is not endorsed by, that court or tribunal.