Central Quay North, Broad Quay
- What was applied for
- A determination of the costs payable by an RTM company under section 88(4) of the Commonhold and Leasehold Reform Act 2002, after its claim failed.
- The figures
- Claimed £72,710.30, allowed 41,438.30 including VAT. Hourly rate cut from 250 to £200. Title investigation of £14,250 cut to 2,000. Management fees of £8,100 disallowed in full.
What Happened
The right to manage claim failed because the premises were not a self-contained building or part of a building, and an appeal was dismissed. The landlord side then claimed £72,710.30, arguing the tribunal had no jurisdiction to assess the litigation element at all. Both applicant companies shared their solicitors' registered address and had the same sole director, who was also a partner in that firm.
What the Tribunal Held
Total allowed £41,438.30 including VAT against 72,710.30 claimed. On jurisdiction the tribunal held that no authority was cited for this novel interpretation, which it considered to fly in the face of section 88 read as a whole, and determined the reasonableness of all disputed costs whether incurred before or as a party to proceedings. The hourly rate was reduced from £250 to £200 throughout. On a £14,250 title investigation charged at £150 per flat it held it was far from clear why it was necessary to investigate the title to and provisions of every lease, and that checking members against office copies did not require a solicitor charging £250 an hour, allowing ten hours in total. Counsel's fee was allowed in full as at the top end of the range but not self-evidently unreasonable. The management company fees were disallowed entirely as unreasonably incurred and a duplication, the tribunal finding it most probable that no services would have been performed but for the claim. The decision gives no physical description of the building.
What it means for a block here. An RTM company that loses is liable only for reasonable costs. The tribunal assesses every item, including litigation costs, and strikes out inflated rates, per-flat title charges and consultancy fees that duplicate the solicitors already instructed.