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Tug-of-war over costs

By: Language: English Series: Estates Gazette ; (0536) 10 September 2005, 274-275(2)Publication details: 2005Subject(s): Summary: 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.
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Item type Current library Call number Copy number Status Barcode
Journal article London Journal article L130982 (Browse shelf(Opens below)) 1 Available 130982-1001

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.