16 Knowle Sands Caravan Park, Highley Road, Knowle Sands, Bridgnorth, Shropshire, WV16 5JL (Park homes - Section 4 - any Question Under Act or Agreement) -[2019] UKFTT RP_BIR_00GG_PHC_2019_0005- (11 June 2019)

Key Facts

Issues

• The Respondent argued Mr Hanks was barred by a Tomlin Order, but the Tribunal determined the order does not preclude his application. The confidential terms of the Tomlin Order were not disclosed in the decision, though its existence was acknowledged.
• The Respondent claimed the Applicants' case was vexatious and sought a costs order under Rule 13. The Tribunal rejected this, noting the Applicants succeeded on their substantive issue and found no evidence of unreasonable conduct.
• The Applicants challenged the validity of pitch fee increases in 2012 and 2015, arguing they were implemented without serving the required statutory notice under Schedule 1, paragraph 17(2) of the Mobile Homes Act 1983. The Tribunal found the increases invalid due to non-compliance with notice requirements, ruling the current pitch fee remains £450. Applicants are entitled to a total refund of £750 each for overpayments from 2012–2018.
• The Applicants requested a declaration for revised written statements to reflect an amended paragraph 2(c), agreed via emails in 2018. The Tribunal directed the Respondent to issue these revisions within 14 days, alongside correcting the pitch fee to £450, as the existing statement incorrectly cited £600.
• Except for Mr and Mrs Yale, Applicants sought an express 0.1% transfer fee term in their written statements, claiming it was agreed at the 2018 AGM. The Tribunal rejected this, finding it has no authority to add new terms under the Act, only to vary or delete existing ones.

Holdings

• The Respondent was directed to provide revised written statements to all Applicants, correcting the incorrect pitch fee (£600 to £450) and including the agreed amended wording for paragraph 2(c). This was required within 14 days of the decision's issue.
• The Tribunal determined that the pitch fee increases in 2012 and 2015 were invalid due to non-compliance with statutory notice requirements under the Mobile Homes Act 1983. Applicants are entitled to a refund of £750 each, with the current valid pitch fee set at £450. The limitation period for claims was found to be within six years of the 2017 written statement, allowing full refunds for the 2012 and 2015 periods.
• The Respondent's Rule 13 costs application was dismissed, as the Tribunal found no evidence of unreasonable conduct by the Applicants. The Applicants' success on the substantive pitch fee issue weighed against a costs order.
• The Tribunal rejected the Applicants' request to add an express term for a 0.1% transfer fee on mobile home sales, ruling that it lacks jurisdiction to add new terms under the Act. The Respondent's argument that the Act only allows varying or deleting existing terms was accepted.

Remedies

• The Tribunal declared that the Tomlin Order between the Respondent and Mr. Hanks does not hinder his current application, with confidential terms not affecting the decision.
• The Tribunal determined that the Applicants are entitled to a refund of £750 each for overpayment of pitch fees in 2012 and 2015 due to invalid increases. The refund is to be paid within 14 days of the decision.
• The Respondent is directed to provide the Applicants with a revised written statement reflecting the correct pitch fee of £450 and including the amended paragraph 2(c), to be issued within 14 days.
• The Tribunal found no unreasonable action by the Applicants, so no costs order under Rule 13 was issued.
• The Tribunal did not grant the Applicants' request to add an express term specifying a 0.1% transfer fee on the sale of a mobile home, as it falls outside their jurisdiction.

Legal Principles

• The Tribunal determined that the Applicants bore the burden of proving the Respondent failed to serve statutory notices under paragraph 17(2) of Schedule 1 to the Mobile Homes Act 1983. The Applicants successfully demonstrated this lack of compliance, leading to the invalidation of the 2012 and 2015 pitch fee increases.
• The Tribunal rejected the Respondent's Rule 13 costs application, finding no evidence of unreasonable conduct by the Applicants despite the Applicants' success on the substantive issue. The decision aligns with the principle that successful claimants are typically not penalized for costs unless proven unreasonable.
• The Tribunal applied the statutory language of the Mobile Homes Act 1983 (Schedule 1, paragraphs 16 and 17) literally to assess the validity of pitch fee increases. The strict adherence to procedural requirements (e.g., 28-day notice period) was central to the decision.
• The Tribunal concluded it lacked jurisdiction to add an express term (0.1% transfer fee) to the written statement under the Mobile Homes Act 1983, as the statute only permits varying or deleting existing terms, not introducing new ones.

Cited Statute

• Limitation Act 1980
• Mobile Homes Act 1983
• Tribunal Procedure (First-Tier Tribunal) (Property Chamber) Rules 2013

Judge Name

• A Rawlence
• S McClure

Passage Text

• Accordingly, the Tribunal does not allow interest on the refund.
• The amount of the refund is £50 for each of 2012, 2013 and 2014, and £150 for each of 2015, 2016, 2017 and 2018, being a total sum of £750 payable to each Applicant by the Respondent.
• The Tribunal finds that the pitch fee increases in 2012 and 2015 are not valid increases due to the lack of compliance with the statutory notice requirements.