5-8 Frognal Mansions, 97 Frognal, London NW3 6XT LON/00AG/LDC/2025/0767-COSTS
DECISION
ON SECTION 20C COST APPLICATION Decision of the tribunal The tribunal makes no order under section 20C of the Landlord and Tenant Act 1985 in respect of the costs incurred, or to be incurred, by the Applicant in connection with these proceedings. The background[1]This application is supplemental to an application (the “Original Application”) made by the Applicant pursuant to section 20ZA Landlord and Tenant Act 1985. In the Original Application the Applicant applied for dispensation from compliance with the relevant statutory consultation requirements in respect of certain major works.[2]The tribunal’s decision in respect of the Original Application is dated 5 November 2025 (“the Original Decision”). The tribunal agreed unconditionally to dispense with the relevant statutory consultation requirements for the reasons set out in the Original Decision. Cost application[3]Elena Samsonenko, the leaseholder of Flat 6A and the only one of the Respondents to have opposed the application for dispensation, has made a cost application under section 20C of the Landlord and Tenant Act 1985 (a “Section 20C Application”).[4]The relevant parts of Section 20C of the Landlord and Tenant Act 1985 read as follows: “(1) A tenant may make an application for an order that all or any of the costs incurred, or to be incurred, by the landlord in connection with proceedings before … the First-tier Tribunal … are not to be regarded as relevant costs to be taken into account in determining the amount of any service charge payable by the tenant … . (3) The … tribunal … may make such order on the application as it considers just and equitable in the circumstances.”[5]Therefore, a Section 20C application in the context of these proceedings is essentially an application that the Applicant be prohibited from charging to leaseholders through the service charge any of the costs incurred by it within these proceedings.[6]Ms Samsonenko has not made detailed submissions in support of her Section 20C Application, although she is nevertheless entitled to have it considered. Tribunal’s analysis of Section 20C Application[7]As noted above, in relation to a Section 20C Application the tribunal “may make such order on the application as it considers just and equitable in the circumstances”, and therefore the order is a discretionary one.[8]In the Upper Tribunal decision in The Tenants of Langford Court v Doren Limited (LRX/37/2000), His Honour Judge Michael Rich QC stated as follows: “There is no automatic expectation of an Order under s.20C in favour of a successful tenant, although a landlord who has behaved improperly or unreasonably cannot normally expect to recover his costs of defending such conduct. In my judgement the primary consideration that the LVT [the tribunal] should keep in mind is that the power to make an order under s.20C should be used only in order to ensure that the right to claim costs as part of the service charge is not used in circumstances that make its use unjust… . [The purpose of] section 20C … is to give an opportunity to ensure fair treatment as between landlord and tenant, in circumstances where even although costs have been reasonably and properly incurred by the landlord, it would be unjust that the tenants or some particular tenant should have to pay them. Oppressive and, even more, unreasonable behaviour however is not found solely amongst landlords. Section 20C is a power to deprive a landlord of a property right. If the landlord has abused its rights or used them oppressively that is a salutary power, which may be used with justice and equity; but those entrusted with the discretion given by s. 20C should be cautious to ensure that it is not itself turned into an instrument of oppression.”[9]In the Upper Tribunal case of SCMMLA (Freehold) Limited, re Cleveland Mansions, and Southwold Mansions [2014] UKUT 58(LC), Martin Rodger QC stated that “an order under section 20C interferes with the parties’ contractual rights and obligations and for that reason ought not to be made lightly or as a matter of course”.[10]Applying the above principles to the facts of this case, it is clearly the case that the Applicant landlord was wholly successful in respect of the Main Application. It applied for dispensation and was granted that dispensation unconditionally. There is therefore no good reason to interfere with the parties’ contractual rights and obligations in this case by making an order prohibiting the Applicant landlord from recovering all or part of its costs through the service charge.[11]There are also two other factors of relevance in this case. First of all, there is no basis for concluding that the Applicant landlord has conducted these proceedings in an improper or unreasonable manner. Secondly, the Applicant landlord is a leaseholder-owned company with no funds of its own and no ground rent coming in. It is therefore wholly reliant on the service charges, and it would therefore be particularly unfair in this case to expect it to shoulder the cost burden itself instead of recovering its costs through the service charge.[12]Accordingly, we consider it just and equitable in all the circumstances to refuse to make a Section 20C Order in this case. Name: Judge P Korn Date: 28 November 2025 RIGHTS OF APPEALa. A. If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber) a written application for permission must be made to the First-tier Tribunal at the regional office dealing with the case.b. B. The application for permission to appeal must arrive at the regional office within 28 days after the Tribunal sends written reasons for the decision to the person making the application.c. C. If the application is not made within the 28 day time limit, such application must include a request for extension of time and the reason for not complying with the 28 day time limit; the Tribunal will then look at such reason and decide whether to allow the application for permission to appeal to proceed despite not being within the time limit.d. D. The application for permission to appeal must identify the decision of the Tribunal to which it relates (i.e. give the date, the property and the case number), state the grounds of appeal, and state the result the party making the application is seeking.