First-tier Tribunal Reduces Tenant's Liability for Administration Charges

OUTCOME: Allowed in Part

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : LON/00BK/LSC/2022/0313 Property : 58 [ADDRESS] [POSTCODE] Applicant : [redacted] Representative : Mr [COUNSEL] counsel instructed by [NAME], Solicitors Respondent : [redacted] Mrs [COUNSEL] (2) Representative : Mr [COUNSEL] in person for himself and Mrs [COUNSEL] of [NAME] : Para 5A Schedule 11 Commonhold and Leasehold Reform Act 2002. Tribunal members : Mr [NAME] [NAME] and Venue of hearing : 3 [ADDRESS] [POSTCODE] Date of decision : 31 August 2023

DECISION Re-issued with a typographical correction under rule 50 shown in strike-through and underlining on 25 October 2023

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1. Following the issuing of the Tribunals decision of 10 April 2023, the respondent, acting through counsel, made an [NAME] dated 9 May 2023 for an order under Para 5A Schedule 11 Commonhold and Leasehold Reform Act 2002, to reduce or extinguishing the tenant’s liability to pay a particular administration charge in respect of litigation costs.

2. Taking into account the determinations in the decision of 10 April 2023 as amended on 31 August 2023, the Tribunal determines that an order be made that not more than half the applicant’s administration charges in respect of litigation costs may be recovered via the service charge from the respondent.

3. The reasons are (i) neither party has been wholly successful. Although the amount found payable of £259.74 was small compared to the initial claim of £5,560.24 (reduced by Judge Pittaway to £4,497.36 in October 2022) the applicant had been entitled to £259.74 since November 2022 and that amount was admitted in the appeal application1 (ii) there was no evidence of any offer by the respondent to settle this action (iii) the property is a self-managed block owned by the residents and (iv) even a successful party can have no expectation of a s. 20C order Tenants of [ADDRESS] v Doren Limited [2001] 3WLUK 935, which by parity of reasoning the Tribunal considers applies equally to this [NAME]. Name: Mr [NAME]: 31 August 2023

Typographical correction

25 October 2023 Rights of appeal By rule 36(2) of the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013, the tribunal is required to notify the parties about any right of appeal they may have. If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber), then a written [NAME] for permission must be made to the First-tier Tribunal at the regional office which has been dealing with the case. The [NAME] for permission to appeal must arrive at the regional office within 28 days after the tribunal sends written reasons for the decision to the [NAME]. If the [NAME] is not made within the 28-day time limit, such [NAME] must include a request for an extension of time and the reason for not complying with the 28-day time limit; the tribunal will then look at such reason(s) and decide whether to allow the [NAME] for permission to appeal to proceed, despite not being within the time limit.

1 Para 29

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The [NAME] for permission to appeal must identify the decision of the tribunal to which it relates (i.e. give the date, the property and the case number), state the grounds of appeal and state the result the party [NAME] the [NAME] is seeking. If the tribunal refuses to grant permission to appeal, a further [NAME] for permission may be made to the Upper Tribunal (Lands Chamber).