City Quay, Ellerman Road, Liverpool L3 4FD MAN/00BY/LDC/2022/0006

FIRST-TIER TRIBUNAL

PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case No MAN/00BY/LDC/2022/0006

Between

City Quay Management (2001) Company LtdApplicant

Various residential long-leaseholders of City QuayRespondent

Before

Mr J A Platt FRICS (Chairman)

Mr W Reynolds MRICS

Cullimore Dutton Solicitors for the Applicant

Date 27 June 2022

Property: 4FD

Type of application: Landlord & Tenant Act 1985 S20ZA Mr J A Platt FRICS (Chairman)

DECISION

Pursuant to section 20ZA of the Landlord and Tenant Act 1985 the Tribunal makes a determination to dispense with the requirement for the Applicant to consult with the Respondents on the procurement of insurance cover under a long-term agreement for three-years commencing 20 September 2021.

REASONS

[1]The application (‘the Application’) was made on 18 January 2022 by the Applicant’s Representative. It seeks dispensation under section 20ZA of the Landlord and Tenant Act 1985 (‘the Act’) in relation to the statutory consultation requirements prescribed by Section 20. The Applicant entered into a qualifying long-term agreement relating to the provision of insurance cover for City Quay, with NIG Insurance, commencing 20 September 2021. The policy provides cover for one year but automatically renews on each anniversary at a fixed cost over a three-year period.

[2]City Quay is a purpose built scheme comprising 415 units, located within 13 separate blocks of flats. The Respondents are the leaseholders of the flats. The Applicant is a Residents’ Management Company landlord of whom all the Board of Directors are also leaseholders.

[3]Directions were issued on 28 March 2022. The Applicant was directed to provide details of the Application to all Respondents. The Respondents were, thereafter, invited to notify the Tribunal if they opposed the application and, if so, provide a statement in response to the Application.

[4]The Applicant’s Representative confirmed to the Tribunal on 11 April 2022 that the Directions had been complied with. No responses were received by the Tribunal from any Respondents opposing the application.

[5]The Application detailed terms of the insurance cover, details of market testing undertaken by the broker, benefits of the cover, costs of the cover in total and to each individual leaseholder. The Application also detailed why it had not been possible to comply with the consultation requirements of Section 20 due to the limited time within which the offer was available to be accepted by the Board of Directors (who are all leaseholders contributing to the costs of the cover). In view of there being no ‘active’ Respondents opposing the Application, it is not necessary to reproduce that information in any detail within this decision. The Law

[6]Extracts from Sections 20 and 20ZA of the Act are appended.

[7]The Tribunal considers the Supreme Court case of Daejan Investments Limited v Benson and Others

[2013] UKSC 14

(‘Daejan’) to be the leading case on dispensation. In Daejan Lord Neuberger stated that in deciding pursuant to section 20ZA whether it is reasonable to dispense with consultation requirements, a tribunal should consider whether any relevant prejudice would be suffered by the leaseholders. Lord Neuberger stated that whilst the legal burden of proof rests throughout on the landlord, the factual burden of identifying some relevant prejudice that they would or might have suffered rested on the tenants. Determination

[8]In this case, none of the Respondents have opposed the Application. The Tribunal finds therefore, that there is no relevant prejudice identified by any Respondent, suffered as a consequence of the Applicant’s decision not to follow the consultation requirements prescribed by Section 20 of the Act.

[9]A decision on the issue of dispensation does not concern the issue of whether any service charge costs resulting from any agreement are reasonably incurred or payable.

[10]In the circumstances of this case, the Tribunal considers it reasonable to dispense with the consultation requirements. Accordingly, the Tribunal makes a determination under section 20ZA of the Act to dispense with the requirement to consult with the Respondents under Section 20, in relation to the procurement of insurance cover under a long-term agreement for three years commencing 20 September 2021. J A Platt Tribunal Judge 27 June 2022 Annex: List of Leaseholders BCP Alpha Ltd Mr & Mrs A Jennings Mr & Mrs R Irving Dr & Mrs W J Jones Mr & Mrs A K Zubair Mr & Mrs R Seth Dr A Graham Mr & Mrs A Shah Mr & Mrs S Chen Dr A K S Manoj Mr & Mrs Bellamy Mr & Mrs S Hothi Dr A M Arain Mr & Mrs Chiu Mr & Mrs S Khatri Dr A Nair Mr & Mrs D Evans Mr & Mrs S Penrose Dr C G Blanshard Mr & Mrs D Grimes Mr N Bowley Dr M Vilalta-Escoda Mr & Mrs D Higham Mr N Goldstone Dr Morad Kamyab Mr & Mrs D Jones Mr N Mather Dr Rieka Taghizadeh Mr & Mrs D Marrs Mr N Nixey Dr S Jiwani Mr & Mrs D Vaja Mr N R Howard Dr S R Gutha Mr & Mrs Downes Mr N S Harrison Dr S Tripathi Mr & Mrs E S Blakey Mr Neil Shaw Fan & Jing Zhang & Ma Mr & Mrs F Andrade Mr O Parkhouse ICC Investments Ltd Mr & Mrs F J Davis Mr P F Xavier Messrs Bray & Cassell Mr & Mrs G Deary Mr P Ghosh Mr & Mrs S Street Mr & Mrs G T Lacy Mr P Hanratty Mr & Mrs T Marshall Mr & Mrs Hasson Mr P Hayes Mr & Mrs Y H Cheung Mr & Mrs Hicks Mr P J Husband Mrs Wong Mr & Mrs J Brennan Mr P Kettle Messrs P & Y Spratt Mr & Mrs J Earnshaw Mr B R Barlow Miss Alison Graham Mr & Mrs J Stephens Mr B Savadia Miss Anna B Bridge Mr & Mrs K Burke Mr B Vidarsson Miss Carol Krenn Mr & Mrs K Duncan Mr Ben Stanley Miss Carol Metcalf Mr & Mrs K Harris Mr Brian Riley Miss Caroline Hayword Mr & Mrs K Neilson Mr Brian Roche Miss Emma Kristina Crosby Mr & Mrs K S Ward Mr C A Smith Miss F A Ashaye Mr & Mrs N Mitchell Mr C Barnes Miss F Wilson Mr A C Palmer Mr C Cullen Miss H Chandrashakar Mr A Dumbell Mr C G Goulding Miss Hollie Washington Mr A Farrell Mr C Herring Ms A Salam Mr A Fradley Mr C J Smith Miss J Wolfendale Mr A Hayes Mr C K Patel Miss Jessica Small Mr A Hunt Mr C Lakhanpal Miss Joanne Hale Mr A J Larkin Mr C Skane-Davis Miss J A Featherstone Mr A Komuravelli Mr Candlin Miss K Edwards Mr A Mashood Mrs GJones Miss K K Atterbury Mr A Mediratta Mrs H Pryce Miss K Walsh Mr A Rasaratnam Mrs J McDonough Miss Kelsie Williams Mr A Rogan Mrs J Nixey Miss L T Baker Mr A Sampat Mrs Julie Wright Miss L Wilcox Mr A Starkey Mrs Justine Clare Miss M Delargy Mr A Tattershall Mrs P A Steen Miss Nicola Dunne Mr A Warren Mrs P Clay Miss S W Cheung Mr Alan Quinn Mrs P Kean Miss T A Greenall Mr G Khanijau Mrs P Yadav Miss T Barnes Mr G O'Flanagan Mrs S Bharat Miss T Clucas Mr G Smith Mrs S Passmore Miss Teresa Dennis Mr Geoff Williams Mrs S Wong Ching Hwai Miss Vimisha Mistry Mr Graeme Jones Mr B Goodyear Mr D Eccles Mr Ian Christie Ms A Faulkner Mr D N Garnett Mr J De La Rosa Mr N A Pitt Mr D S Dickenson Mr J Donoghue Mr N Holden Mr D Sunderland Mr J Hewitt Mr P Simpson Mr D Taylor Mr J L Cartwright Mr Paul Baker Mr E E S Alsayagh Mr J Laya-Gomaez Mr Paul Bromley Mr E R Slaughter Mr J McCafferty Mr Peter Martin Beckett Mr Eddie Tickle Mr Aylen Mr Peter Vickers Mr F Renshaw Mr S K Kok Mr Richard Francis Mr G Boccuzzi Mr S Mitha Mr Ryan Macauley Mr G Evans Mr S Nuttall Mr S Ashoo Mr G Hamilton Mr S O'Neill Mr Sam Mawdsley Mr G Hewitt Mr S Rao Mr Sands & Miss Moran Mr G J Jones Mr S T Chorley Mr T Winn-Morgan Ms A Williams Mr Sam Gibson Mr V Ferguson Ms C & K Boyce Mr Shane Turner Mr Vaughan & Ms Raisey Ms C M Wingate Mr Singh Mr W T Morris Ms Cheung Mr Stanley Davies Mr Yulun Wu Ms Diane Grant Mr S Crosby Mr Z r Sullivan Ms Donna Maria Burke Mr S Dowell Mrs & Mrs B & J Dimeck Ms Eileen Jones Mr S Gelling Mrs A C Higham Ms Emma Wainright Mr T A Clarke Mrs D N Shah Ms J Bailey Mr T Brady Ms Anna Mary Dolby Ms J Beach Mr T C Brock Ms E C Pomford Ms J Hayworth Mr T Donnelly Ms F Zaman Ms J Kershaw Mr T J F Nixon Ms G Gale Ms J Markham Mr T Radia Ms H S Robb & Mr C P Mason Ms J Paton Mr U Gupta Ms J Hayworth Ms J Tse Mr V Koowaroo Ms J S Schmidt Ms J Warburton Mr V S Kwong Yip Ms L Romano Ms K A Bradbrook Mr V Sood Ms M Jones Ms K Bradbury Mr W Akinrinola Ms M Woodward Ms K Stanton Mr W J Bradley Ms N Gimson Ms L A Bagshaw Mr W Judge Ms N Killen Ms L A King Mr W Martin Ms P J Robshaw Ms L Gimbert Mr W Range Ms S Burns Ms L Jones Mr Z Esmail Ms V Karkelanova Ms L Kissack Mr Zr Mohsan Salvesen Properties Ltd Ms L M Howard Mrs & Miss Prakash Southernplus Ltd Ms L Murrell Mrs A McCurley Miss R Farahi Ms M G P Raja Mrs D K McEvoy Miss RL Bailey Ms P J Newey Mrs D Rubin Mr & Mrs Gale Ms S Ioannidis Mrs G Garwood Mr P R Trayler Mr Paul Moses Mr & Mrs Bagnall) Mr Holden & Ms McLoughlin Mr PeiYuan Jiang Mr & Mrs C Deane Executors Mr P Lad (Deceased) Mr R M Langley Mr & Mrs Higham Messrs Eswaran & Kandeeswaran Mr R Patel Mr & Mrs M Hart Messrs P & M Johnson-Treherne Mr R Pollard Mr & Mrs P Siddle Miss I Mateides & Mr N A Fulcher Mr R Sandhu Mr D Campbell Mr & Miss K B & S J Roberts & Lloyd Mr R Whitehouse Mr & Mrs P Bowery Mr & Mrs Neven & Nives Kasic Mr S Harding Mr & Mrs Stringman Mr & Mrs P J Marshall Mr S Hegarty Mr P Marshall Mr & Mrs P T Whitty Mr S J Hopkins Mr Adam Jones Mr & Mrs G J Brandwood Ms S L Snow Mr Alan Atherton Mr P L McCormick Ms S McLaughlin Mr Alexander Joseph Scanlon Mr P Levenson & Miss E J Fitzsimons Ms S Subhani Mr Arthur Baas Mr Malcolm Peoples Ms S Thomas Mr Ben Howen Mr Marc Stanton-Bennett Ms Sarah J Allen Mr Buckeridge & Miss Booty Mr Michael Binks Ms V A Williams Mr Christopher Wilson Mr Mike Readitt Ms W C Derbyshire Mr Chun Ting Lam Dr & Mrs M Alexander Ms W Gilbert Mr D Bailey Mr & Ms Richard Ward Ms Y L Chan BCP Beta Ltd Mr Cook & Ms Sawko O Smith Mr D J P Higham Mr Winiarski & Mrs Wolanska Reticent Holdings Ltd Mr D Vaja Mr B Higgins & Dr S Meah VP Ferguson Ltd Mr Daniel Ankrah Mr Christopher Jones Wai Ting Tse Mr Daniel Cabezas Mr D Branum-Winters Dr S Jiwani Mr Darik K L Leung Mr Andrew Bamford Miss G Miller Mr David John O'Malley Mr Anthony Whittaker Miss K M Foster Mr Derek Campbell Mr J Stone & Miss D J Rodaway Mr M John Mr Dipti Vinay Shah Mr D Copsey & Mr S Iheanaetu Mr J Vogler Mr Douglas James Grimshaw Mr P Potter & Mr P Gordon Mr Jaques Loguellou Mr G Holman Mr Paul & Vinod Tandon Mr Jason Taylor Mr Gary King Mr D Holdsworth & Mr J Muirhead Mr Joel Berman Mr Geoff Williams Ms A Shewhorak & Ms K Parnell Mr Jonathan Owen Mr H A Alhanshali Mr T Latimer & Ms A Reyland Mr K E Wood Mr Heaps & Miss Edwards Anvil Property Management Limited Mr K Nijjer Mr J Haynes Bik Wah Linda Mok Mr Keith Thomas Baines Mr Jack Murray Christopher James Lettings Ltd Mr Kieran Swindells Mr James Leonard Miss N Whitehouse Mr Kim Cheung Mr Jamey Todd Smith Mr & Mrs Sandeep & Kajal Shah Mr L D Mildener Mr John K Birchall Waterloo Dock Property LTD Mr L Simpson Mr Kazi Shahabuddin Mr L Singh Mr Kevin James Foster Mr Lee D Harten Mr Levi Tsi Lung Cheung Mr M & I Ibrahim Mr M Carmichael Mr M Burns Mr Martin & Ms Cameron Mr M J Riley Mr Mike Bytheway Appendix Landlord and Tenant Act 1985 Section 20 (Subsections (1) and (2):)(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 under the agreement. Section 20ZA (Subsection (1)) (1) Where an application is made to a tribunal for a determination to dispense with all or any of the 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.