The leaseholders instructed the managing agent by way of a residents’ management company (RMC). The managing agent did not issue the RMC with terms of business. After experiencing a number of problems with the managing agent’s service, the RMC gave the managing agent six weeks’ notice to terminate the managing agent’s instruction and requested that the managing agent release the relevant documents they held (leases, leaseholder’s files, tender documents and contracts) to the new managing agent. The managing agent did not respond to this request.

On two occasions after the notice to terminate expired, the directors of the RMC visited the managing agent’s offices, but on both occasions the managing agent refused to release the documentation they held. The managing agent then claimed that the directors of the RMC had no authority to act as directors of the RMC.

The managing agent finally released the documentation to the new agent two months later, after the RMC instructed solicitors to act on their behalf.

The Outcome

The complaint was supported. As the managing agent had failed to provide the RMC with terms to the contrary, the six weeks’ notice of termination provided by the RMC was considered reasonable.

The managing agent’s actions intentionally obstructed the right of the RMC to appoint a new managing agent and caused significant aggravation and inconvenience.