City Link, Hessel Street, Salford, M50 1DB, M50 1DJ, M50 1DZ, M50 1DH MAN/00BR/LDC/2021/0015
DECISION
Compliance with the consultation requirements of s.20 of the Landlord and Tenant Act 1985 is dispensed with in relation to urgent works to upgrade the fire alarm system.REASONS
[1]The First-tier Tribunal received an application on 2 March 2021 under s.20ZA of the Landlord and Tenant Act 1985 (“the Act”) for a decision to dispense with the consultation requirements of s.20 of the Act. Those requirements (“the consultation requirements”) are set out in the Service Charges (Consultation Requirements) (England) Regulations 2003 (“the Regulations”).[2]The application was made by Rendall Rittner Ltd. on behalf of Rockwell (FC101) Ltd. (“the Applicant”), in respect of City Link, Hessel Street, Salford, M50 1DB / M50 1DJ / M50 1DZ / M50 1DH (“the Property”). The Respondents to the application are the long leaseholders of the flats within the buildings. A list of the Respondents is set out in the annex hereto.[3]The only issue for the Tribunal to determine is whether it is reasonable to dispense with the consultation requirements.[4]The application identifies the subject Property as two purpose built blocks containing 212 apartments.[5]The work in respect of which a dispensation is sought is the upgrading of the existing fire alarm system.[6]The works are urgently required because the fire policy has been changed from “stay put” to “simultaneous evacuation” due to defects with the external façade. In order to support a simultaneous evacuation policy, a walking watch has been introduced as an interim measure until the current fire alarm system can be extended. The cost of the walking watch is £3,643.20 per week. This cost will continue to be incurred until the new fire alarm system is installed.[7]s.20 Part 1 notices were issued to the Respondents on 5 February 2021. The Applicant has advised the Respondents that dispensation will be sought to allow the works to commence urgently. The Applicant has obtained quotations from five contractors. It is the Applicant’s intention to proceed with the most cost effective solution.[8]The proposed works are “qualifying works” within the meaning of section 20ZA(2) of the Act.[9]On 25 March 2021, the Tribunal issued directions and informed the parties that, unless the Tribunal was notified that any party required an oral hearing to be arranged, the application would be determined upon consideration of written submissions and documentary evidence only. No such notification was received, and the Tribunal therefore convened on the date of this decision to consider the application in the absence of the parties. The directions included at paragraph 5 a provision that required the Applicant to write to each of the Respondents informing them of the application and providing them with information about the application process. The Applicant’s representative confirmed by email on 10 June 2021 that this had been done. Grounds for the application[10]The Applicant’s case is that it is necessary to undertake these works quickly to adequately protect the occupants of the apartments in the two blocks and to mitigate the costs of the walking watch. By implication, the Applicants case is that the works relate to common parts of the Property which the landlord is obliged to maintain under the terms of the leases, with the costs associated therewith being recoverable from the tenants via service charge provisions incorporated within the leases. The Tribunal was provided with a specimen copy of the deed of covenant and a specimen copy of the lease relating to apartment 2503.[11]The Applicant asks the Tribunal to grant dispensation in respect of the works, which it considered to be so urgent as to warrant avoiding the additional delay that compliance with the consultation requirements would have entailed. The Law[12]Section 18 of the Act defines what is meant by “service charge”. It also defines the expression “relevant costs” as: the costs or estimated costs incurred or to be incurred by or on behalf of the landlord, or a superior landlord, in connection with the matters for which the service charge is payable.[13]Section 19 of the Act limits the amount of any relevant costs which may be included in a service charge to costs which are reasonably incurred, and section 20(1) provides: Where this section applies to any qualifying works … the relevant contributions of tenants are limited … unless the consultation requirements have been either–(a) complied with in relation to the works … or(b) dispensed with in relation to the works … by the appropriate tribunal.[14]“Qualifying works” for this purpose are works on a building or any other premises (section 20ZA(2) of the Act), and section 20 applies to qualifying works if relevant costs incurred in carrying out the works exceed an amount which results in the relevant contribution of any tenant being more than £250.00 (section 20(3) of the Act and regulation 6 of the Regulations).[15]Section 20ZA(1) of the Act provides: Where an application is made to the appropriate Tribunal for a determination to dispense with all or any of the consultation requirements in relation to any qualifying works … the Tribunal may make the determination if satisfied that it is reasonable to dispense with the requirements.[16]Reference should be made to the Regulations themselves for full details of the applicable consultation requirements. In outline, however, they require a landlord (or management company) to:• give written notice of its intention to carry out qualifying works, inviting leaseholders to make observations and to nominate contractors from whom an estimate for carrying out the works should be sought.• obtain estimates for carrying out the works, and supply leaseholders with a statement setting out, as regards at least two of those estimates, the amount specified as the estimated cost of the proposed works, together with a summary of any initial observations made by leaseholders.• make all the estimates available for inspection; invite leaseholders to make observations about them; and then to have regard to those observations.• give written notice to the leaseholders within 21 days of entering into a contract for the works explaining why the contract was awarded to the preferred bidder if that is not the person who submitted the lowest estimate. Conclusions[17]The Tribunal must decide whether it is reasonable for the works to proceed without the Applicant first complying in full with the s.20 consultation requirements. These requirements ensure that tenants are provided with the opportunity to know about the works, the reason for the works being undertaken, and the estimated cost of those works. Importantly, it also provides tenants with the opportunity to provide general observations and nominations for possible contractors. The landlord must have regard to those observations and nominations.[18]The consultation requirements are intended to ensure a degree of transparency and accountability when a landlord (or management company) decides to undertake qualifying works. It is reasonable that the consultation requirements should be complied with unless there are good reasons for dispensing with all or any of them on the facts of a particular case.[19]It follows that, for the Tribunal to decide whether it was reasonable to dispense with the consultation requirements, there needs to be a good reason why the works should and could not have been delayed. In considering this, the Tribunal must consider the prejudice that is caused to tenants by not undertaking the full consultation while balancing this against the risks posed to tenants by not taking swift remedial action. The balance is likely to be tipped in favour of dispensation in a case in which there was an urgent need for remedial or preventative action, or where all the leaseholders consent to the grant of a dispensation.[20]In the present case there is no doubt that the works were necessary and pressing for the occupiers of the apartments. The Tribunal finds that it is reasonable for these works to proceed without the Applicant first complying in full with the s.20 consultation requirements. The balance of prejudice favours permitting such works to have proceeded without delay.[21]In deciding to grant a dispensation, the Tribunal has had regard to the fact that no objections were raised by the Respondent leaseholders in compliance with the Tribunals Directions of 11 October 2019.[22]The Tribunal would emphasise the fact that it has solely determined the question of whether or not it is reasonable to grant a retrospective dispensation from the consultation requirements. This decision should not be taken as an indication that the Tribunal considers that the amount of the anticipated service charges resulting from the works is likely to be recoverable or reasonable; or, indeed, that such charges will be payable by the Respondents. The Tribunal makes no findings in that regard and, should they desire to do so, the parties will retain the right to make an application to the Tribunal under s.27A of the Landlord & Tenant Act 1985 as to the recoverability of the costs incurred, as service charges. 16 July 2021 Judge P Forster Annex Aisha Naeem and Muhammed Naeem 1001 City Link Tardent Develop Ltd 1002 City Link Araceli Ajoc Abiera 1003 City Link Meng H Kueh and Siaw W Jong 1004 City Link Suneetha Ndimamidi & Gridhar Naidimamidi 1005 City Link Kwan Wing Ho & Anthony Lok Mun Ho 1006 City Link Morag Elizabeth Payne 1007 City Link Tommac Properties Limited 1007A City Link Tommac Properties Limited 1007B City Link Sara Malik & Nauman Haneef Malik 1008 City Link Esmat Allam 1009 City Link Mr Mohammed Noor 1010 City Link Pravinchandra Pindolia & Savita Pindolia 1011 City Link Andrew William Thomas 1011A City Link Timothy N Shelly & Fan Z Shelly 1012 City Link Ravello Investments Limited 1013 City Link Charlotte Arabella Graham 1013A City Link Seema Kumari Sethi 1013B City Link Mr Brendan Harold Tait 1013C City Link Alex Adeyemi Adelakun & Eniola Iyabode Adelak 1013D City Link Mr John Forrest 1014 City Link Be Present Limited 1015 City Link Mohamed A Naeem & Nargis Naeem 1015A City Link Mr Malcolm Cameron-Lee 1016 City Link Esmat Allam 1017 City Link Ami White 1018 City Link Mr Malcolm Cameron-Lee 1019 City Link Ms Linda Cutts 1019A City Link Daniel David Thomas 1019B City Link Wong Lok Man Arnold 1019C City Link Pravinchandra Pindolia & Savita Pindolia 1020 City Link Mr Leo Cyril George 1101 City Link Mr Leo Cyril George 1102 City Link Mr Rapheal Jonathan O'Keefe 1103 City Link Muriel Lindsay Lloyd 1104 City Link Kishor Rangarao Padki & Siddarth Padki 1105 City Link Mr Gary Hunter 1106 City Link Angel W Y Law and Chin H Chong 1107 City Link Gerondio Jr S Panong & Gemma A Marasigan 1108 City Link Marie Cronin 1109 City Link Mr & Mrs Morrisey 1110 City Link Michael A Piddoux & Patricia D Stirling 1111 City Link Mr Sudheer G Khagram 1112 City Link Mr Duncan Cullen & Ms Yu Lin 1113 City Link Alison Hughes 1114 City Link Stuart J Brinkworth 1115 City Link Frances Watters 1116 City Link Ravello Investments Limited 1117 City Link Madhav Narahari & Sudhanagamani Narahari 1118 City Link Harshit Sonmalbhai Shah 1119 City Link Miss Michelle Green 1120 City Link Heather K Boyd-Badger 1121 City Link Dipta Sudheer Khagram 1122 City Link Mr Anthony S Jakara & Mrs Elaine M Shaw 1123 City Link Mr N Elliot 1124 City Link Ravello Investments Limited 1125 City Link Mr Jeremy Prodger 1126 City Link Georgia Anne Bowen 1127 City Link Craig Vincent Morris 1128 City Link Nicole H Rose 1129 City Link Prana Limited 1130 City Link John Joseph Roche & Eileen Bernadette Roche 1131 City Link Abraham Gross 1132 City Link Lukasz A Kedzior & Sylwia A Kedzior 1201 City Link Mr Thomas Brangan & Mrs Ingrid Brangan 1202 City Link Pravinchandra Pindolia & Savita Pindolia 1203 City Link 'Marc R Cowie, Paul C Cowie ' & David R Cowie 1204 City Link Mahendra Bagrecha & Hiral Shah 1205 City Link Misratch Tilahun 1206 City Link Mr Gerard McCool 1207 City Link Camilla Feasey 1208 City Link Araceli Ajoc Abiera 1209 City Link Lesley Blackburn 1210 City Link Lina Romana Akbar 1211 City Link Asif M Anwar 1212 City Link Mr Leo Cyril George 1213 City Link Mr Malcolm Cameron-Lee 1214 City Link Mr Mark Van Rol 1215 City Link Mr Malcolm Cameron-Lee 1216 City Link Xuewei Zhang 1217 City Link Tardent Develop Ltd 1218 City Link 'Ivan Choofon, Anne Choofon' & Francesca Choofon 1219 City Link Paul J L Boutillier & Marianne Wolf 1220 City Link Mr John Bosco McGIll 1221 City Link Mr Malcolm Cameron-Lee 1222 City Link Blue Cove Enterprise Limited 1223 City Link Mr Malcolm Cameron-Lee 1224 City Link Mr Mark Van Rol 1225 City Link Mr Mark Van Rol 1226 City Link Mr Mark Van Rol 1227 City Link Mr Mark Van Rol 1228 City Link Mr O'Shea & Miss Peters 1229 City Link Ryan Cheuk Wah Ho 1230 City Link Mr David Timmons 1231 City Link Elizabeth Catherine Duggan 1232 City Link Mr Leo Cyril George 1301 City Link Hemal Bhagalia 1302 City Link Bismarck Rock Properties 1303 City Link Shahed Islam 1304 City Link Mr Mark Van Rol 1305 City Link Mr Mark Van Rol 1306 City Link Simon Mon Hing Hu 1307 City Link Mr Thomas Ryan 1308 City Link Nicole H Rose 1309 City Link Mr Malcolm Cameron-Lee 1310 City Link Mr Mark Van Rol 1311 City Link Marja Leena Davis 1312 City Link Subash Chandra Kalia 1313 City Link Mr Mark Van Rol 1314 City Link Assas Properties Ltd 1315 City Link Susan J Jelley 1316 City Link Gillian G Griggs 1317 City Link Mr Thomas Brangan & Mrs Ingrid Brangan 1318 City Link Mr Malcolm Cameron-Lee 1401 City Link Mr Lee Garvey 1402 City Link Azam Sultan & Faiza Azam Sultan 1403 City Link Mr Malcolm Cameron-Lee 1404 City Link Ainsley B Stephenson & Maxine J Stephenson 1405 City Link Meinhard Huck and Colette Huck 1406 City Link Mr M S Walker & Mr D K Holloway 1407 City Link Tommac Properties Limited 1408 City Link Isabella Lawrence 1409 City Link Assas Properties Ltd 1410 City Link Tony P Hatchard & Jennifer E Hatchard 1411 City Link Aslam Feroze and Imran Aslam 1412 City Link Stephen Mark Brown 1413 City Link Fatima Mirza 1414 City Link Stanford Harrison 1501 City Link Yash Rash Limited 1502 City Link Francesco Toto 1503 City Link Bharti Patel 1504 City Link Kapil Uppal 2001 City Link Julian Woolcock & Alison Woolcock 2002 City Link Stuart J Brinkworth 2003 City Link Pranjivan Patel & Varsha Nilesh Patel 2004 City Link Alexander Robert Tait & Johanna Tait 2005 City Link Panayiotis Louca 2006 City Link Isabella Lawrence 2007 City Link Conrad Gerald Powell 2008 City Link Mr Benjamin James Robertson 2009 City Link Mohammad M Sarhan 2010 City Link Philip Kurtenbach & Anne Kurtenbach 2011 City Link Ravi Kothari & Rina Balvanta Mistry 2012 City Link James Matthew Parkin & Ophelie Aubry 2101 City Link Al Rayan Bank PLC 2102 City Link Michelle McNulty 2103 City Link Mr David J Still & Mrs Della Still 2104 City Link Mr Leo Cyril George 2105 City Link Wai-Tong Wong 2106 City Link CGP Properties Limited 2107 City Link Adib Hassan Rahmani 2108 City Link Mr Matthew Richard Arundel 2109 City Link Glenn Kelly 2110 City Link Bharti Patel 2111 City Link David John Still & Della Still 2112 City Link Ms Bi Xue 2113 City Link Andrew D Lewington & Siobhan B Lewington 2201 City Link Mr Noren K Suneram & Mrs Sabeena Suneram 2202 City Link Daniel Che Yeung Pang 2203 City Link Michael Huckerby 2204 City Link Andrew William Thomas 2205 City Link Keenal Patel 2206 City Link Mr Steven B Fellows & Mrs Hazel Fellows 2207 City Link Sarah Joy Hughes & David Anthony Hughes 2208 City Link Kamran Akhtar and Iman Ali 2209 City Link Assas Properties Ltd 2210 City Link Christopher Aldborough 2211 City Link Clare L Griffiths & Philip A Griffiths 2212 City Link Griffco Properties Ltd 2213 City Link Mr Rupert W A Mackay 2301 City Link Eunjoo Jeong 2302 City Link Mr Richard P W Wall & Mrs Pamela G Wall 2303 City Link Dawn Karen Harris 2304 City Link Andrew D Clapp & Laura A Clapp 2305 City Link Raj & Co. 2306 City Link Prana Limited 2307 City Link McCard Limited 2308 City Link Ms Marie L Wain 2309 City Link Mr Daniel J Cunliffe 2310 City Link Mr Richard P W Wall & Mrs Pamela G Wall 2311 City Link Hongjun Yuan and Jinhua Qiao 2312 City Link Hongjun Yuan and Jinhua Qiao 2313 City Link Neeta Kumari and Swaty Gupta 2401 City Link Sara Naudi 2402 City Link Lynne Susan Rhodes 2403 City Link Christos Soultogiannis & Sarra Pardali 2404 City Link Gail Ainsworth & Robert Michael Ainsworth 2405 City Link Marzena Manko & Dean Styles 2406 City Link Nicholas James Sheehan-Jackson 2407 City Link Delchester Property Limited 2408 City Link Ryan James Gregory 2409 City Link Adib Rahmani 2410 City Link Maher Marwan Arantani 2411 City Link Mr Kashif Salman Faruqui 2412 City Link Ms Matilda Muzvondiwa 2413 City Link Sarah Ann Rock 2414 City Link Jehangir Azam Jilani 2501 City Link Benjamin James Carr 2502 City Link Andrew D Lewington & Siobhan B Lewington 2503 City Link Assas Properties Ltd 2504 City Link Tulsi Monish Patel 2505 City Link Elizabeth A Mailey & Jonathan A Rowland 2506 City Link Luke Du Casse 2507 City Link Griffco Properties Ltd 2508 City Link Avraham Fogel and Ilana Fogel 2601 City Link Alice Jing Qian 2602 City Link Jehangir Azam Jilani 2603 City Link Andrew William Thomas 2604 City Link Mr Tahir A Khokhar & Mrs Samina Y Khokhar 2701 City Link Mr Sitansu S Sahoo & Ms Susmita Kumari 2702 City Link Grant Stoke Limited 2703 City Link Robert William Martin Dean & Angela Joy Dean 2704 City Link