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Orchard Trading Estate Management Ltd v Johnson Security Ltd

Series: Estates Gazette ; [2002] 18 EG 155-159(5)Publication details: 2002Subject(s): Online resources: Summary: CA 26 March 2002. Claimant (O) had been formed to administer the estate and provide certain services to unit owners for a service charge in the form of a nominal and a variable rentcharge under a deed. O had to pay for alternative disposal after a breakdown of the sewerage system and sought to recover expenses under the rentcharge provisions. Defendant (J), a unit owner, pleaded inter alia that the rentcharge purportedly created under the deed was void by reason of the Rentcharges Act 1977 s2J appealed against the judge's striking out of the pleadings, contending that the payment of rates in respect of such areas as sewerage works would be of benefit to the unit owners and there was no limit of reasonableness as to the level of charge. "Held" appeal dismissed. Payment of rates in respect of such areas would be for the benefit of the unit owners and were within s2(4b) of the 1977 Act. Further that the absence of an express limitation of reasonableness cannot render the rentcharge void. Full judgement available on Court Service website http:////www.courtservice.gov.uk/View.do?id=1103&searchTerm=Orchard&ascending=false&index=0&maxIndex=1
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Item type Current library Call number Copy number Status Barcode
Law report London Journal article ABS65561 (Browse shelf(Opens below)) 1 Available 118345-1001

CA 26 March 2002. Claimant (O) had been formed to administer the estate and provide certain services to unit owners for a service charge in the form of a nominal and a variable rentcharge under a deed. O had to pay for alternative disposal after a breakdown of the sewerage system and sought to recover expenses under the rentcharge provisions. Defendant (J), a unit owner, pleaded inter alia that the rentcharge purportedly created under the deed was void by reason of the Rentcharges Act 1977 s2J appealed against the judge's striking out of the pleadings, contending that the payment of rates in respect of such areas as sewerage works would be of benefit to the unit owners and there was no limit of reasonableness as to the level of charge. "Held" appeal dismissed. Payment of rates in respect of such areas would be for the benefit of the unit owners and were within s2(4b) of the 1977 Act. Further that the absence of an express limitation of reasonableness cannot render the rentcharge void. Full judgement available on Court Service website http:////www.courtservice.gov.uk/View.do?id=1103&searchTerm=Orchard&ascending=false&index=0&maxIndex=1