Automated Summary
Key Facts
The case involves a dispute over reasonable legal costs under Section 33(1) of the Leasehold Reform, Housing and Urban Development Act 1993. The tenant (Peachdrive Properties Ltd) sought to determine the landlords' (Brandon Whitcher, Enrica Bellone, and Serine Hamwazi) statutory costs for a collective enfranchisement claim. The landlords claimed £6,494 in legal costs and £2,000 in valuation fees, while the tenant offered £2,500 and £1,500. The tribunal found the landlords' hourly rates reasonable but ruled the time spent (19.5 hours) excessive, allowing £4,020 in legal costs and £1,500 in valuation costs, totaling £5,520 plus VAT.
Issues
- The tribunal assessed the reasonableness of legal costs claimed by the landlords under Section 33(1) of the Leasehold Reform, Housing and Urban Development Act 1993, focusing on the hourly rates and the excessive time claimed (19.5 hours) for a straightforward enfranchisement transaction. The court determined that while the hourly rates were reasonable, the time spent was unjustifiably high and adjusted the costs accordingly.
- The tribunal evaluated the valuation costs claimed by the landlords, particularly the £600 abortive site inspection fee by Mr. Shapiro. The court found the inspection unacceptable due to the valuer’s failure to attend scheduled appointments and instead conducting an unscheduled visit without access, leading to a reduction in the allowed valuation costs to £1,500 plus VAT.
Holdings
- The valuation costs of £2,000 plus VAT were partially disallowed. The valuer's abortive site inspection without prior appointment was deemed unacceptable, but the tenant conceded to £1,500 plus VAT which the tribunal accepted despite £100 clearly relating to the unauthorised inspection. The tribunal noted that no reasonable landlord would cover such costs for an unauthorised inspection.
- The tribunal determined that the landlords' claimed legal costs of £6,494 plus VAT were excessive. They found 19.5 hours claimed for the transaction was unreasonable, allowing 12 hours at a blended rate of £335, resulting in an approved legal cost of £4,020 plus VAT. Key examples included the 2.3-hour transfer preparation being 'manifestly excessive' and 48 minutes for a simple completion statement being unjustified. Some claimed time (0.9 hours) related to correspondence outside the defined tasks.
Remedies
- The tribunal awarded statutory costs of £5,520 plus VAT to the landlords under Section 33(1) of the Leasehold Reform, Housing and Urban Development Act 1993.
- Valuation costs of £1,500 plus VAT were allowed, despite an abortive site inspection, as conceded by the tenant.
Monetary Damages
5520.00
Legal Principles
The tribunal applied the statutory framework under Section 33(1) of the Leasehold Reform, Housing and Urban Development Act 1993 to assess the reasonableness of legal costs incurred in the collective enfranchisement claim. The decision emphasized that costs must be reasonable and proportionate to what a privately paying landlord would accept, rejecting excessive time claims while upholding justified hourly rates for an experienced solicitor.
Cited Statute
- Leasehold Reform, Housing and Urban Development Act 1993
- Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013
Judge Name
- Duncan Jagger MRICS
- Angus Andrew
Passage Text
- a. Having regard to the standard nature of the transfer we agree with Ms Nye that the 2.3 hour claimed for its preparation is "manifestly excessive".
- 24. For a person of Ms Neale's experience and expertise this was a simple transaction. It was the acquisition of the freehold reversion of a building comprising four flats...The 19.5 hours claimed is excessive and cannot be justified...We therefore allow legal costs of £4,020 plus VAT.
- 29. No landlord would either expect or be prepared to pay a valuer out of his own money for an abortive site inspection undertaken without a prior appointment...His conduct was unacceptable and the resultant cost should be not be visited either on a privately paying landlord or the tenant.