Author: the JB Leitch Technical & Complex Litigation team.
For this edition focusing on service charge and major works, the legal team at specialist property solicitors JB Leitch provide an update on some recent and relevant case successes and their significance.
Service Charge Case Successes for JB Leitch with Industry Wide Implications: Abacus Land 4 Limited v Bradley and Another [2025] EWCA Civ 1308
In respect of the Upper Tribunal’s decision following the leaseholders’ appeal earlier in 2024, permission was granted for the landlord to appeal to the Court of Appeal.
The Court of Appeal was asked to consider the important issue of how the First-tier Tribunal (“FTT”) should deal with challenges to the exercise of a landlord’s discretion, where a landlord had a contractual obligation to act reasonably.
The Court of Appeal’s decision, handed down in October, clarifies the scope of the FTT’s jurisdiction, which had potentially widened as a result of the Upper Tribunal’s (“UT”) decision (which found that the landlord’s contractual obligation to act reasonably required objective reasonableness).
The judgment highlights that the “FTT did not err in law, and the UT was not entitled to substitute its own view of the reasonableness or fairness of the Landlord’s decision”. The FTT could properly take the view that the decision (in this case) to recover costs via the service charge scheme was “not a decision of the type where it could be said that no reasonable landlord in a similar position could ever have made it”. Landlords can be entitled to prefer their own interests when designating costs as service charge, the landlord’s obligation to act reasonably in this lease does not require the landlord to act in a way which is “objectively” reasonable.
Further Court of Appeal Success for JB Leitch
JB Leitch has secured further success at the Court of Appeal this month for our Landlord client in a leading case which addressed an application for a costs capping order under rule 52.19 of the Civil Procedure Rules and the interaction between such applications, contractual provisions and the provisions of the Landlord and Tenant Act 1985.
The proceedings concerned the reasonableness of aspects of service charges in a case covering a complex set of facts.
After considering a number of case authorities, the Court held that such an order would not be appropriate in this case. The Court found that making a costs capping order would effectively shift the costs risk, which would not accord with justice or the overriding objective.
In summary, this decision sets an important precedent. Philip Parkinson & Katie Edwards of JB Leitch acted for our Landlord client, with Tom Morris of Landmark Chambers. A full case analysis will follow on our Legal News website section shortly.
Case Success for JB Leitch Regarding Consultation for Remedial Works
The Building Safety Act 2022 & dispensation of the section 20 consultation requirements: Whether dispensation pursuant to s.20ZA of the Landlord & Tenant Act 1985 should be granted…
JB Leitch recently acted for the landlord in this application seeking dispensation from the consultation requirements contained in s.20 of the Landlord and Tenant Act 1985.
On behalf of the landlord, JB Leitch made an application to the First-tier Tribunal (“FTT”) under section 20ZA Landlord and Tenant Act 1985 for dispensation of the consultation requirements in respect of remediation works at a purpose-built residential block, each unit of which is held on a long lease.
Fire safety reports undertaken in respect of the premises identified building safety works required, including internal compartmentalisation works, removal and replacement of external cladding, installation of a new fire alarm system and an interim waking watch.
The landlord’s application sought dispensation from the statutory consultation requirements in respect of the compartmentation works, cladding works and fire alarm installation on the grounds (amongst others) that the works should be undertaken as soon as practicable and owing to the nature and progress of the works project, without unnecessary delay which may be caused by consultation under section 20.
A number of leaseholders objected to the application on grounds which included supply of information regarding the works, disputing the costs of the works, and the appointment of the contractor. The Tribunal concluded in its judgment that these objections were less focused on the landlord’s inability to consult under section 20 and were intended more to prevent the landlord from having ‘carte blanche’ to carry out unlimited works.
Further to these recent case successes, JB Leitch has also been celebrating retaining Tier 3 status in the Legal 500 announced in October. The newly published listing sees Legal Director Phil Parkinson highlighted in the category of “Next Generation Partner” – a level of accreditation that reflects significant recognition from clients and peers in the market. Special recommendations are also given for Associate Director of Legal Katie Edwards, along with Associates Victoria Brewer, Alex Green and Lauren Walker.
We are also delighted to celebrate the news that in mid-October, Associate Victoria Brewer was awarded Rising Star status in the Property Management 50 Awards.
The “PM50’s” annually celebrate excellence in the property management sector, recognising leading individuals and teams who significantly contribute to the industry.
Victoria’s award not only reflects her expertise and professionalism, but dedication to knowledge sharing, colleague development and continually providing the best service possible to clients.
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