Lessees win costs application

Following the lessees' Section 20C application to the FTT (Tribunal) to prevent the landlord from recovering any of its legal costs associated with the Section 24 application via the service charge, the Tribunal has now issued its Decision.

The Tribunal's Order states that the Landlord may not recover any of their costs of the proceedings from the service charge budget, and that they must reimburse the service charge fund £320,826 accordingly.

The Tribunal commended the lessees' "desire not to litigate unless necessary" and states:

"The tribunal appointed the manager due to serious failings in the management of the estate"

"The decision was not over-turned on appeal or on an application for judicial review"

"It could therefore be said that the applicants 'won at every opportunity'"

"This tribunal considers that the applicants had no alternative but to make an application"