Landlord Awarded Costs Over RTM Claim
📌 In brief
In a recent case, a landlord successfully claimed costs from a a company after rejecting the company's request to take over management of the property. The First-tier Tribunal awarded the landlord £1,775.92 in costs.
⚖️ Legal holding
A tenant is required to reimburse a landlord for reasonable costs incurred in responding to a claim for the right to manage, as per s88(4) Commonhold and Leasehold Reform Act 2002, where the tenant's claim was rejected and abandoned.
📖 Technical summary
The Tribunal awarded the landlord £1,775.92 for costs related to a claim for the right to manage the property.
📜 Headnote Official document
The Tribunal allowed the landlord the sum of £1,775.92 inclusive of VAT in respect of its costs under s88(4) Commonhold and Leasehold Reform Act 2002. The decision was made by Judge F J Silverman on 21 January 2020.
📚 Full judgment Official document
OUTCOME: Allowed
© CROWN COPYRIGHT 2020
FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference :
LON/00AX/LCP/2019/0013 Property : [ADDRESS] [POSTCODE] Applicant : [redacted] : [APPELLANT] Respondent : [redacted] : Not represented Type of Application : Costs under s88(4) Commonhold and Leasehold Reform Act 2002 Tribunal Member : Judge F J Silverman Dip Fr LLM
Date of paper consideration : 21 January 2020 Date of Decision : 21 January 2020
DECISION
The Tribunal allows the Applicant the sum of £1,775.92 inclusive of VAT where appropriate in respect of its costs under s88(4) Commonhold and Leasehold Reform Act 2o02 and including £100 re-imbursement of their Tribunal application fee. The sum allowed is payable in full by the Respondent.
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REASONS
1 This decision relates to an application for costs assessable under s88(4) Commonhold and Leasehold Reform Act 2002 (the Act) made by the landlord of the property situated and known as [ADDRESS] [POSTCODE] (the property) in relation to a claim for the right to manage by the Respondent company. 2 Directions having been issued by the Tribunal 11 November 2019, this matter was decided at a paper consideration held on 21 January 2020. 3 A bundle of documents had been prepared by the Applicant and was considered by the Tribunal in reaching its decision. No statement of case or response has been received from the Respondent. 4 The issues before the Tribunal were firstly whether the Applicant was entitled to costs at all and secondly, if so, whether the costs demanded were reasonable. 5 The factual background to the application is that the Respondent had served a notice on the Applicant freeholder requesting that the management of the property be transferred to it under the provisions of the Commonhold and Leasehold Reform Act 2002. 6 The Respondent’s claim was rejected by the Applicant and the matter was never concluded and lapsed in 2019. 7 Other than the service of the notice the Respondent seems not to have made any serious attempt to pursue the matter. 8 The Applicant and its managing agent were put to expense in investigating the Respondent’s claim and in preparation of the counter-notice. They now seek to recover those costs from the Respondent. 9 The Applicant’s application claims the sum of £1,195.92 for dealing with the Respondent ’s notice and the service of the counternotice plus £400 plus VAT for the managing agent’s costs and a further £100 Tribunal application fee. 10 Their detailed schedule of costs (pages 2-3) record that the principal in the Applicant’s solicitors’ firm, was charging £275 per hour for her work. The Tribunal considers that this rate was reasonable and representative of a qualified solicitor working in a similar suburban London firm. 11 Similarly the Tribunal finds the work done and times spent on this matter to be both reasonable and proportionate. The solicitor’s fees of £1,195.92 inclusive of VAT are therefore allowed in full. 12 The Tribunal recognises that the service of a notice by the Respondent would also involve the need for the managing agents to do some preparatory work and to liaise between the parties. Their part of the costs claim, valued at £400 plus VAT is also considered to be reasonable and is allowed in full. 13 The Tribunal also considers that it is reasonable to order the Respondent to repay to the Applicant the £100 expended by them on their application to the Tribunal.
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14 The total allowed to the Applicant by the Tribunal and payable by the Respondent under this application is £1,775.92 inclusive of VAT.
15 The Law Commonhold and Leasehold Reform Act 2002 s 88(4)
88 Costs: general (1)A [COMPANY] is liable for reasonable costs incurred by a person who is— (a)landlord under a lease of the whole or any part of any premises, (b)party to such a lease otherwise than as landlord or tenant, or (c)a manager appointed under Part 2 of the 1987 Act to act in relation to the premises, or any premises containing or contained in the premises, in consequence of a claim notice given by the company in relation to the premises. (2)Any costs incurred by such a person in respect of professional services rendered to him by another are to be regarded as reasonable only if and to the extent that costs in respect of such services might reasonably be expected to have been incurred by him if the circumstances had been such that he was personally liable for all such costs. (3)A [COMPANY] is liable for any costs which such a person incurs as party to any proceedings under this Chapter before the appropriate tribunal only if the tribunal dismisses an application by the company for a determination that it is entitled to acquire the right to manage the premises. (4)Any question arising in relation to the amount of any costs payable by a [COMPANY] shall, in default of agreement, be determined by the appropriate tribunal .
Judge F J Silverman as Chairman Date 21 January 2020
Note: Appeals
4 1. A person wishing to appeal this decision to the Upper Tribunal (Lands Chamber) must seek permission to do so by making written application to the First-tier Tribunal at the Regional office which has been dealing with the case.
2. The application must arrive at the Tribunal within 28 days after the Tribunal sends to the person making the application written reasons for the decision.
3. If the person wishing to appeal does not comply with the 28-day time limit, the person shall include with the application for permission to appeal a request for an extension of time and the reason for not complying with the 28- day time limit; the Tribunal will then decide whether to extend time or not to allow the application for permission to appeal to proceed.
4. The application for permission to appeal must identify the decision of the Tribunal to which it relates, state the grounds of appeal, and state the result the party making the application is seeking.
📊 How courts decide similar cases
Among 11 similar decisions in this collection:
- First-tier Tribunal (Property Chamber) First-tier Tribunal Orders RTM Company to Pay Landlord's Costs
- First-tier Tribunal (Property Chamber) Landlord wins cost recovery in Right to Manage case
- First-tier Tribunal (Property Chamber) First-tier Tribunal Awards Costs for RTM Claim
- First-tier Tribunal (Property Chamber) First-tier Tribunal Decides on Reasonable Costs for RTM Claims
- First-tier Tribunal (Property Chamber) RTM Company Ordered to Pay Landlord's Costs After Claim Notice
- First-tier Tribunal (Property Chamber) Tribunal sets £481.25 plus VAT in costs for landlord in right to manage cla…
- First-tier Tribunal (Property Chamber) First-tier Tribunal Decides on RTM Costs Under CLRA 2002
- First-tier Tribunal (Property Chamber) Landlord Successfully Recovers Costs from RTM Company
- First-tier Tribunal (Property Chamber) Tribunal Orders £2382.28 in Costs for Landlord Following Right to Manage No…
- First-tier Tribunal (Property Chamber) First-tier Tribunal Decides Reasonable Costs for RTM Companies
- First-tier Tribunal (Property Chamber) First-tier Tribunal Determines Costs for Right to Manage Claim
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 principal solicitor's hourly rate of £275 was deemed reasonable for a qualified solicitor in a similar firm.
- The work performed and time spent by the solicitor were considered reasonable and proportionate.
- The Tribunal application fee of £100 was deemed reasonable for the respondent to repay to the applicant.
❌ Tends to be rejected
- The respondent did not submit a statement of case or response to the application for costs.
- The respondent did not seriously pursue its claim for the right to manage after serving the initial notice.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tribunal awarded the landlord £1,775.92 in costs following a claim for the right to manage the property.
What was the dispute about?
The dispute was over the landlord's right to manage the property and the costs incurred in responding to the tenant's claim.
How did the court decide, and why?
The court decided in favour of the landlord, finding that the costs were reasonable and proportional to the work done in responding to the tenant's claim.
Which laws or rules were applied?
The Commonhold and Leasehold Reform Act 2002, specifically section 88(4), was applied.
What was the argument that mattered most?
The argument that mattered most was that the landlord's costs were reasonable and representative of a qualified solicitor working in a similar suburban London firm.
Was the decision for or against the person who brought the case?
The decision was for the landlord who brought the case.
What does this mean for someone in a similar situation?
This means that a landlord can recover reasonable costs from a tenant if the tenant makes a claim for the right to manage the property and the landlord incurs costs in response.
What evidence or documents mattered?
The evidence included a bundle of documents prepared by the landlord and considered by the Tribunal in reaching its decision.
