[2003] EWCA Civ 1491. Respondent (S) was granted an overriding headlease for the purpose of managing a block of flats, 41 of which were held under intermediate leases by the second respondent (L). L was liable to S for service charges and ground rents but did not have to pay service charges for any expenditure which was not reserved by or required to be paid by the sublessees. In the County Court, following a dispute over the service charges payable by at least 29 sublessees, S claimed arrears of service charge against L. L joined the appellant sublessee(s) (X) as CPR Part 20 defendants. County Court judgment held S to be entitled: (1) to apply any year-end surplus to the reserve fund and not repay or credit the occupational lessees; (2) to receive interest from ground rent or service charge late payment; and (3) to recover legal costs incurred in current or past proceedings to recover service charges and ground rent. X appealed and S cross-appealed. "Held", appeal was allowed in part in respect of (1), dismissed in respect of (2) and allowed in respect of (3), the cross-appeal being dismissed: (1) S was entitled to apply a year-end service charge surplus to the reserve fund only in accordance with the terms of the lease and only a fair and reasonable part of the duly certificated expenses and outgoings; (2) S was entitled to be paid as rent, interest on late payment of ground rents and service charges; (3) S's legal costs were irrecoverable as service charges.