Service charges 鈥 the bad news keeps coming for tenants!
A few months ago, we discussed a case where the Court of Appeal ruled that the wording of a lease precluded the tenant from arguing that certain costs should not have been included in the service charge calculation. A recent high-profile case concerns a broadly similar issue, this time in relation to the proportion of the landlord鈥檚 costs payable by a tenant.
A few months ago, we discussed a case where the Court of Appeal ruled that the wording of a lease precluded the tenant from arguing that certain costs should not have been included in the service charge calculation.
Criterion Buildings Ltd v McKinsey & Company Inc (UK) & Anor [2021] EWHC 216 (Ch) (11 February 2021)
This recent concerns a broadly similar issue, but this time in relation to the proportion of the landlord鈥檚 costs payable by a tenant. In this case, the tenant was liable to pay a fair proportion to be determined by the landlord or its surveyors. The court ruled that where it made no financial difference to the landlord how costs were divided between tenants, the landlord could (subject to rationality) be trusted to make a subjective decision which could not be challenged in court.
Both of these cases show the importance for tenants of drafting leases to allow a tenant to challenge any part of the landlord鈥檚 determination as to its overall service charge liability. Otherwise, a tenant may have no recourse if it disagrees with any element of the landlord鈥檚 determination.
Related expertise
You may be interested in...
澳门六合彩资料
Navigating workplace sexual harassment laws during the festive season
澳门六合彩资料
Retail Law Roundup: December 2024
澳门六合彩资料
Navigating the Levelling Up and Regeneration Act 2023: Implications for retailers with vacant premises
澳门六合彩资料
UK consumer law: What is changing and how might it affect retailers?
Press Release
澳门六合彩资料 advises retail giant The Range on its acquisition of Homebase
Opinion
Power for local authorities to conduct compulsory rental auctions of vacant high street properties to come into force next month
澳门六合彩资料
Building an inclusive workplace: strategies for attracting and retaining disabled talent
澳门六合彩资料
Roundtable report: Community engagement in high street regeneration
澳门六合彩资料
Reform of Gambling Regulation in Ireland
澳门六合彩资料
ASA bans 鈥渕isleading鈥 Huel and ZOE ads endorsed by Dragon鈥檚 Den Star
Opinion
Choose your words wisely: Balancing inclusivity and employees鈥 beliefs at work
Guide
Guidance for manufacturers of EVs and HEVs in the UK: ASA's non-exhaustive electric vehicle advertising guidance
澳门六合彩资料
(Deep)fake it till you make it? The ASA's role in regulating false celebrity endorsements
Press Release
澳门六合彩资料 strengthens Irish Corporate team with appointment of Principal Associate James Byrne
澳门六合彩资料
The benefits of good governance in sport
Press Release
澳门六合彩资料 to lead discussions on the future of real estate and infrastructure at this year鈥檚 UKREiiF 2024 event
Press Release
澳门六合彩资料 acquires business of real estate practitioner Paul Taylor Solicitors
澳门六合彩资料
The Baltimore bridge collapse: One of the biggest losses in maritime insurance history?
澳门六合彩资料
Understanding the ICO's new fining guidance
澳门六合彩资料
Unravelling the challenges and opportunities in UK sports governance
澳门六合彩资料
ASA ruling on Calvin Klein FKA Twigs advertisement
Press Release
澳门六合彩资料 successful for National Lottery in Court of Appeal
Opinion
Caregivers at work: Navigating new carer's leave regulations
Opinion
EHRC publishes new guidance on menopause and the workplace
Opinion
BBC personality wins appeal on IR35 status
澳门六合彩资料
Covid BI litigation (Autumn 2023): Insurance coverage disputes update
澳门六合彩资料
COP28 - how to limit and prepare for future climate change
Press Release
澳门六合彩资料 advise Maven Equity Finance on investment in Traverse Associates
Press Release
Three strong restructuring and insolvency team join 澳门六合彩资料
Podcast
The real estate podcast: How AI and tech is changing real estate
澳门六合彩资料
How to negotiate better 鈥榞reen鈥 provisions in your leases
Opinion
The Metaverse's influence on real estate: Implications for commercial retail clients and law firms
Guide
How to manage retail sector supply contracts and avoid disputes
澳门六合彩资料
Utilising prime retail sites to improve the health of our nation
澳门六合彩资料
A new era of opportunity for high street regeneration?
Opinion
Practical points from High Court ruling that Tesco has infringed Lidl鈥檚 IP rights in its famous yellow circle logo
Press Release
Corporate dealmakers advise Sodexo Live! on its move to 100% stake in global sports, travel and hospitality provider STH
澳门六合彩资料
Pitfalls for retailers to avoid when offering access to 鈥榖uy now, pay later鈥 products
Press Release
澳门六合彩资料鈥檚 Manchester dealmakers advise Spatial Global on its acquisition of Heathrow based freight specialist Hollyport Logistics
