Tug-of-war over costs
Jones, Simon
Tug-of-war over costs - 2005 - Estates Gazette (0536) 10 September 2005, 274-275(2) .
Considers the new, albeit limited power introduced under the Commonhold and Leasehold Reform Act 2002 Sched 12 para 10 (4) for leasehold valuation tribunals (LVTs) to award costs in LVT applications. Describes how it has led to conflicting judgments in two recent cases: "Schilling v Canary Riverside Developments PTE Ltd" ([2005] PLSCS 102, L130219) and "Staghold v Takeda" ([2005] PLSCS 160)."Schilling" held that this provision would significantly restrict a landlord's right to recover any legal or professional fees incurred in connection with the LVT application whereas "Staghold" concluded that para 10(4) did not preclude the landlord's contractual right to recover legal and professional costs incurred in previous LVT and Lands Tribunal proceedings as a service charge. Both cases will probably be appealed. If "Schilling" is upheld, landlords will have to defend unmeritorious claims by leaseholders without being able to recover the costs of defending the claim.
SCHILLING V CANARY RIVERSIDE DEVELOPMENT
UNFAIR TERMS IN CONSUMER CONTRACTS REGULATIONS 1999 REG 5(2)
COMMONHOLD AND LEASEHOLD REFORM ACT 2002 SCHED 12 PARA 10(4
LANDLORD AND TENANT ACT 1985 S20C
STAGHOLD V TAKEDA
Tug-of-war over costs - 2005 - Estates Gazette (0536) 10 September 2005, 274-275(2) .
Considers the new, albeit limited power introduced under the Commonhold and Leasehold Reform Act 2002 Sched 12 para 10 (4) for leasehold valuation tribunals (LVTs) to award costs in LVT applications. Describes how it has led to conflicting judgments in two recent cases: "Schilling v Canary Riverside Developments PTE Ltd" ([2005] PLSCS 102, L130219) and "Staghold v Takeda" ([2005] PLSCS 160)."Schilling" held that this provision would significantly restrict a landlord's right to recover any legal or professional fees incurred in connection with the LVT application whereas "Staghold" concluded that para 10(4) did not preclude the landlord's contractual right to recover legal and professional costs incurred in previous LVT and Lands Tribunal proceedings as a service charge. Both cases will probably be appealed. If "Schilling" is upheld, landlords will have to defend unmeritorious claims by leaseholders without being able to recover the costs of defending the claim.
SCHILLING V CANARY RIVERSIDE DEVELOPMENT
UNFAIR TERMS IN CONSUMER CONTRACTS REGULATIONS 1999 REG 5(2)
COMMONHOLD AND LEASEHOLD REFORM ACT 2002 SCHED 12 PARA 10(4
LANDLORD AND TENANT ACT 1985 S20C
STAGHOLD V TAKEDA