Jefferson Place, 1 Fernie Street, Manchester, M4 4AZ MAN/00BN/LDC/2021/0073

FIRST-TIER TRIBUNAL
PROPERTY CHAMBER (RESIDENTIAL PROPERTY)
Case No MAN/00BN/LDC/2021/0073
Redbank Manchester LimitedApplicantVarious Residential Long Leaseholders See Annex ARespondent
Tribunal Judge J.E. OliverS.A. KendallJB Leitch Limited for the ApplicantDate 16 June 2022Property: Manchester, M4 4AZType of application: 1985 – Section 20ZA Tribunal Judge J.E. Oliver

DECISION

[1]The application to dispense with the consultation requirements imposed by Section 20 of the Landlord and Tenant Act 1985 (“the Act”) regarding the works specified by the Applicant to ensure the safety of the residents at Jefferson Place, 1 Fernie Street, Manchester is granted.

REASONS

[2]This is an application made by Redbank Manchester Limited (“the Applicant”) for the dispensation of the consultation requirements imposed by Section 20 of the Landlord & Tenant Act 1985 (“the Act”) regarding works required to remedy the existing cladding system at Jefferson Place, 1 Fernie Street, Manchester (“the Property”).[3]The Applicant has stated the current cladding does not comply with the current guidance and proposes to carry out certain works to remedy this. These works include: render, spandrel panels, metal cladding, insulation and sundry associated works, fire safety barriers, vents, signage and other fitments.[4]The Respondents to the application are the various long leaseholders of the Property (“the Respondents”).[5]The application is dated 7th July 2021 and in respect of which directions were issued on 11th February 2022 providing for the filing of any objection by the Respondents and for the application to be determined without a hearing.[6]There was one formal objection to the application by the leaseholder of Apartment 16.05. The Law[7]Section 20 of the Act provides:(1) Where this section applies to any qualifying works or qualifying long term agreement, the relevant contributions of tenants are limited in accordance with subsection (6) or (7) (or both) unless the consultation requirements have been either- (a) complied with in relation to the works or agreement, or (b) dispensed with in relation to the works or agreement by (or on appeal from) a tribunal(2) In this section “relevant contribution”, in relation to a tenant and any works or agreement, is the amount which he may be required under the terms of his lease to contribute (by the payment of service charges) to relevant costs incurred on carrying out the works or under the agreement(3) This section applies to qualifying works if relevant costs incurred on carrying out the works exceed an appropriate amount.[8]In the event the requirements of section 20 have not been complied with, or there is insufficient time for the consultation process to be implemented then an application can be made to the First-tier Tribunal pursuant to section 20ZA of the Act.[9]Section 20ZA of the Act provides: (1) Where an application is made to a tribunal for a determination to dispense with all or any consultation requirements in relation to any qualifying works, or qualifying long term agreement, the tribunal may make the determination if satisfied that it is reasonable to dispense with the requirements Submissions[1]The Applicant is the landlord of the Property, a 18-storey residential block (including three basement car parking levels) with 309 apartments.[2]The Applicant has been made aware that remedial works are required to the Property relating to the construction of the external wall system and, in particular, that it is constructed of combustible materials and poses a fire risk.[3]The Applicant has appointed specialist firms to report further upon the work required to remedy the defects and they have recommended the works as referred to in paragraph 3 above. The cost of this work will require compliance with the consultation requirements of section 20 of the Act.[4]The Applicant has registered the Property with the Government Building Safety Fund due to the nature of the remedial work and has claimed for the full cost of the work, but this may not be granted. There is a dispute as to whether the white render construction type, forming part of the Property, is eligible for funding and further work is ongoing regarding this.[5]The Applicant has chosen to proceed with the work under a Design and Build procurement route which is where the appointed contractor both designs and constructs the work.[6]The Applicant has obtained tenders for the work and states Castles have provided the most cost-efficient quote, in the sum of £10,709,632.51 excluding VAT and fees. It is said that, at the time of the application., it was unknown when a final decision would be made in respect of the funding, but as and when a decision is made, work will need to commence at short notice.[7]The Applicant seeks dispensation from all consultation requirements since it is said it would not be practicable to comply with them given the method of funding, the procurement method for dealing with the works and the urgency of it. It is confirmed it has updated the Respondents with details of the works via an online portal and has also arranged several online resident meetings to discuss and advise on progress.[8]The Applicant submits the Respondents will not suffer any financial prejudice by the granting of dispensation. If dispensation is not granted and consultation is required then any government funding could be lost resulting in higher costs for the Respondents.[9]One objection to the application has been received. This said that due to the uncertainty regarding whether the white render will be included in the government funding, the possibility of additional costs to the Respondents will not be the subject of any consultation. The objection was conditional upon the Applicant fulfilling certain requirements as follows:(1) Provide a detailed plan of the start, duration and sequence of the works to be conducted.(2) Provide evidence that manpower resources are in place and orders have been placed, with confirmed delivery schedules of the raw materials, to fulfil the sequence of works and without any risk of delay due to failed procurement processes and without the need for periods of pause or absence from sire.(3) Provide details of the building security measures which will be put in place whilst the work is underway, including access to any scaffolding and exterior access.(4) Provide confirmation that all sky telecom aerials, aerials and other communications fitments will not be disabled and full communication access will be maintained for all leaseholders and residents.[10]The Applicant submitted the conditional approval was unreasonable and the Respondents would not be prejudiced by dispensation being granted. Determination[11]The Tribunal is being asked to exercise its discretion under section 20ZA of the Act. Section 20ZA (1) provides the Tribunal may do so where “if satisfied that it is reasonable to dispense with the requirements”.[12]The Tribunal, having considered the submissions made by the Applicant, is satisfied the works are necessary and are urgent. It accepts that due to the steps taken to carry out the work, it is not practicable to carry out the consultation requirements contained within section 20 of the Act and dispensation is therefore granted under section 20ZA.[13]The Tribunal has considered the objections made but does not consider there is any prejudice to the Respondents by reason of a failure to carry out the consultation requirements.[14]The granting of dispensation does not affect the Respondents’ rights to the challenge the reasonableness or the payability of the service charges under a separate application pursuant to section 27A of the Act. Tribunal Judge J Oliver 4 July 2022 Annex A MAN/00BN/LDC/2021/0073 902 Jefferson Ltd A Daniels, L G Daniels & S Alan Alan Gordon & Ray Shevlin Alan Louis Chierici Alero Okiy Alex Murchie & Helena Murchie Alexander Norton Ali Nazokkar & Arsam Nazokkar Ali Reza Nazokkar Andrew Bain Andrew Johnson Andrew Watkinson & Shelly Watkinson Angela McCormick Anne Cuddy Anthony John Haralambous Anthony Okoye Anthony Thomas Harrison & Thomas Harrison Antony Harrison Appenzeller Properties Ltd Arti Chudasama Asara Enterprises Ltd Barbara Mayling Barclay Brown Beckswood Properties Ltd Blair Matthew Henry & Charlotte Victoria Taylor Camilla Clayton & Ian Jack Clayton Carmel Keane & Brian Keane Carol Lam Caroline King Catharine Nancy Devereaux Charlotte Mary Cunningham & Martin Sharrock Chirag Jayendra Patel Christopher Gerard Broadbent & Kate Broadbent Christopher James Francis Roper Chui Fun Lin Chui Ha Siu Clare Margaret Dixon Cleto Jose Xavier Colaco Clive Richard Hughes & Beverly Hughes Constantinos Nicolaides Curtis Gates D N Gurney & J Gurney Damian Taylor Dandan Luo Daniel Bleoju Daniel Hickey Danny Lynskey David Battersby David Koon Hang Chan & Diana Wing Yim Chan Dhirendra Allen & Sonal Sharma Diane Lyon Dorcros Adetola & Evelyn Adesida Dr & Mrs Khan Dr & Mrs Sakhamuri Dr A Jibril Dr Ahmed Jibril Dr J Yadav Dr K Peddi Dr K Peddi & Mrs K Peddi Dr Louisa Pang Dr M Mahmoud Dr Mustafa Mahmoud Dr R Kislov Dr Stuart Bradley Downhill Dr Sylvia Sham Duncan Eric Sanders Ehsan Ghayoorkarimiani & Asieh Ehsaei Ekaterina Lurye Elaine Dyson Elizabeth Somes & Jeffrey Crisp Fair General Investment Ltd Faraaz Akhtar Nakvi Farook Owadally & Seema Khan Fat Chung Shum Fu Yau Wong Gemma Hunter George Edward Perfitt Gerard Foy & Mary Foy Grace Kwan Hung Choi Gurmukh Reehal Habib Salem Dardouri Han & Woo Kang Hang Kin Tsang Hannah Elizabeth Robinson Hardev Sian & Bakshish Sian Heung Wong & Sau Kuen Cecilia Man Hongwei Wang & Mrs Jihau Xiang Iain Thomas Disney Irfan Chauhan Irish UK LLC Jack Lawton Jacob Eastwood James Daniel Ormerod Booth James David Curtis Jamie Cunliffe Jamie Harrison Jason & Peter J Nevitt Jayesh Nayee & Meeta Nayee Jennifer Osbourne Jialu Wang Joan Patricia Kiernan Joanne Chan Joanne Lund John Charles Impey John Fagan Williams John Lee Guy John Peter Kiernan John Richard Webberley John Robert Holmes & Karen Louise Holmes John Rockett & Beverley Jayne Rockett John Walmsley & Daniel Lee Baker Jonathan Clark Jonathan David Sharples Jonathan Swan Jonathon Lee Willett & Alexander Bowery Evans Joseph Fernandes Joshua Iza Brown Julian N Moorbath Julian Robert Nield & Diane Alison Nield Julie English Kapukai Investments Ltd Karen Lesley Flint Kefeng Zhang & Hui Zhang Kenyon Thompson Ltd Khaled Al-Sacid Khalid Jassim Abdulla Althawadi Kin Kwong Wong Kris Andrew Donohue Laura Rose Fowler & Michael James Harrison Lee Eccles LLC Blue Irvine London & Kent Building Service Ltd Lucinda Jane Longster Luke Alexander Overton Luke Smetherham M & H Properties Ltd Mahbub Zaman Maria Duggal & Olivia Duggal Marie Sleigh Mark Andrew Wherrett Mark Burgess & Nicola Tombling Mark Kerins Mark P Forster & Anneka K Burnett Martin Jordan & Jillian Peta Jordan Martin Lloyd Copeland & Gemma Anne Copeland Matthew Edward Hamilton Tinning Matthew Lyons Michael Cox & Sharon Ingman Michael Malone Michael Page & Alessandra Sorrentino Michael Richard Barnes Michael Zhi Wong Michal Bernas Miss C Adikaram Miss Rachel Harvey Mohamed Ajmal Mohamed Amr Aly Gamaleldin Hassanein Mohammed Azam Khan & Shams Shaheen Azam Mohammed Mughal Mohammed Owolabi Mohammed Yusuf Montserrat Palau Morgan Donnellan Mostafa Ahmad Bahaa Elahwal Mr & Mrs C Heaton Mr & Mrs C Tao Mr & Mrs S Bodla Mr A & Mrs S M Fender Mr A Chierici Mr A Devine Mr A J & Mrs E W Lane Mr B & Mrs G Mitton Mr B Spearing Mr C J X Colaco Mr Chaitanya Mangla Mr D Hawley Mr D Maxwell Mr D P & Mrs V Blackburn Mr D Roberts Mr E McLoughney Mr F Shum Mr G Hunt Mr G S & Mrs C S Daw Mr Ghauri Mr Isra Hussain Mr J A & Mrs R J Annand Mr J Impey Mr J Moore Mr J P Muff & Ms D E Beamish Mr M Antoniou Mr M B Mirza Mr M Mirza Mr Matthew James Street Mr Mohammed Maqsood Mr N J Dawson & Mrs E M Dawson Mr Patel Mr Philip Welch & Mrs Raechel Welch Mr Quan Gan Mr R Jiskoot Mr Rami Mahmoud Mr S Hussain Mr S J Best & Mrs D M Best Mr S Whittle Mr Tsz Kit Ieong Mr Yiming Xu Mrs J Calenti Mrs J English Mrs M Hanley Mrs Nila Patel Mrs S Khan Mrs Shabina Akhtar Ms C A Haslam Ms C Whittlestone Ms Hema Odedra Ms I Ling Ms J R O'Callaghan Ms M Kevorkian Ms N Brook Ms N Brown Ms Pamela Lockett Ms S Barker Ms S Hassan Ms S Humphreys Ms S L Humphreys Ms S Younus Muhammed Aitmad-Ur-Rab Myles Oliver Martin & Georgia Mary Cotter Nadeem Mohammad Agha & Nadiya Agha Naomi Elizabeth Brook Nasar Mohmood Malik & Neelofar Malik Natalie Brown Neil Mouatt & Linda Mouatt Niteenkuman Samji Nozomi Fukazawa & Pui Yan Crystal Lau Owais Sharif & Uzma Owais P Murthy & K L Murthy Padraic Kiernan Patrick O'Reilly Paul Adam Stewart Paul James Russell & Dale Andrew Goode Paul Lode Albert Popelier Peter D Girling Peter James Collier Peter Laurie Robertson Peter Neville Smith & Ilona Claire Spencer-Smith Peter Robertson Philiip Hutchinson Philip Peter Clegg Praveen Kumar Maddula Pritesh Ishverbhai Patel R T Williams, J W Williams & S Peterson Ramesh Virji Patel Raymond Cooper & Tina Clinton Raymond Leech & Sandra Leech Richard David Sinclair Clarke Richard Peter Fields Robert Roczynski Rohir Sood & Nisha Shah Roman Kislov Rosey Sethi Ross Alexander Jones Saira Akhter Khan Saleem Shexad Khan Salma Jabeen Younus Sam O'Dongo Samuel Horsley Sandra Leech & Raymond Leech Sean Cleaver Seema Khurana Shazia Azeem Sarwar & Nadia Sarwar Shazli Azmi & Omair Razzaq Shireen Sadreddini Shivji Ramji Varsani Shofiqul Razak Shohreh Khorassani & Shameen Khorassani Simon Adam Mobey Simon Higginson Simon Whittle Sophie Alice Anderson Stephanie Davies Stephanie Hannington-Suen Stephen Gerard Farrelly Stephen Hancock & Alan Mildren Stephen Marshall & Vikki S Marshall Steven John Dugdale Sunilkumar Harish Bhatt Suresh Hirani Susan Anisa Younis Suzanne Barker T S Mithran Tariq Mahmood Hussain Tat Cheong Raymond Fung Thea Elisabeth Lee Thomas David Woodward & Anne Marie Woodward Thomas Harrison & Antony Harrison Thomas Kinsey Timothy Peter Hoggard & Belinda Nora Hoggard Ting Li Chan Vasu Naidu Bonda Vinay Mathur & Sadhana Mathur Virendra Puri & Vyom Puri & Shivani Puri Vladimir Kadochnikov & Larisa Kadochnikov Vy Tran Wai Fong Serin Lau Wai Kuen Bonnie Cheuk Wai Yung William Lowe & Julie Carter-Lowe Xijun Liu Yashar Properties Ltd Yochai Zorno Yuen Shan Lui Yuk Leung Fu Zachary Samuel Mendelsohn Zafar Rashid Kussar Zeshi Wang & Xiao Yu Zubair Hussain