unreasonable behavior
📖 What is unreasonable behavior? Meaning and definition
In UK tenancy law, 'unreasonable behaviour' is a crucial concept, particularly when it comes to the awarding of costs in tribunal proceedings. The Tribunal has the power to order one party to pay the other's costs if a person has acted unreasonably in bringing, defending, or conducting a case, especially in residential property or leasehold matters. This power is outlined in specific rules governing tribunal procedures.
When assessing whether behaviour is unreasonable, the Tribunal typically follows a three-stage process: first, determining if the person acted unreasonably; second, deciding whether to use its discretion to award costs; and third, calculating the amount to be paid. The 'acid test' for unreasonable conduct is whether the behaviour permits of a reasonable explanation. If a reasonable explanation exists, the conduct might be seen as optimistic or a reflection of poor judgement, but not necessarily unreasonable.
Conduct considered unreasonable includes actions that are vexatious or intended to harass the opposing side, rather than genuinely advancing the case's resolution. This can be the case even if the person's motives were not improper but rather stemmed from excessive zeal. However, simply losing a case or acting differently from a more cautious legal representative does not automatically mean the conduct was unreasonable. For example, bringing an action against a registered title owner in a complex rent-to-rent scheme might not be deemed unreasonable if the full nature of the relationship needs to be explored through evidence and cross-examination.
📋 Requirements
- The person against whom an order is sought has behaved unreasonably.
- The conduct is vexatious or designed to harass the other side.
- The conduct lacks a reasonable explanation.
- The proceedings are a residential property case or a leasehold case.
📝 Procedure
- Consider whether the person against whom an order is sought has behaved unreasonably.
- If unreasonable behaviour is found, the Tribunal decides whether to exercise its discretion to award costs.
- If costs are to be awarded, the Tribunal determines how much should be paid.
- Submissions and costs schedules may be filed by the parties to assist in the determination of costs.
💡 Examples
- A landlord who admits multiple breaches of a lease after a lengthy procedural history might be found to have acted unreasonably, leading to an order to pay the tenant's costs.
- A party discontinuing a case might argue that their initial action was not unreasonable because the complexities of the agreement required evidence and cross-examination to be fully understood.
- A tenant seeking costs against a landlord due to the landlord's unreasonable conduct in the proceedings, such as failing to respond to submissions or delaying the case unnecessarily.
- Conduct that is purely intended to annoy or delay the other side, rather than genuinely trying to resolve the dispute, would likely be considered unreasonable.
📚 Legal basis
- Tribunals, Courts and Enforcement Act 2007
❓ Frequently asked questions
What does 'unreasonable behaviour' mean in a property tribunal case?
In a property tribunal case, 'unreasonable behaviour' refers to conduct that is vexatious, intended to harass the other party, or lacks a reasonable explanation, particularly in how a case is brought, defended, or conducted. It's not just about losing the case.
Can I claim costs if the other side acted unreasonably?
Yes, if the Tribunal finds that the other party acted unreasonably in a residential property or leasehold case, it has the discretion to order them to pay your costs. The Tribunal will consider if their behaviour had a reasonable explanation.
Is simply losing my case considered unreasonable behaviour?
No, the Upper Tribunal has clarified that conduct cannot be described as unreasonable simply because it leads to an unsuccessful result. There must be an element of vexation, harassment, or a lack of reasonable explanation for the actions taken.
What is the 'acid test' for unreasonable behaviour?
The 'acid test' is whether the conduct permits of a reasonable explanation. If there is a reasonable explanation for the actions taken, even if they were optimistic or reflected poor judgement, they might not be deemed unreasonable.
What kind of actions might be considered unreasonable?
Actions that are vexatious, designed to harass the other side rather than advance the case, or a landlord admitting multiple breaches of a lease after a prolonged procedural history could be considered unreasonable behaviour.
What if I think the other party's lawyer acted unreasonably?
The concept of unreasonable behaviour applies to the person bringing, defending, or conducting the proceedings, which can include their legal representatives. If you believe their conduct was unreasonable, you can raise this with the Tribunal when seeking a costs order.