The tenants under long leases, paid a service charge. The Landlord kept the excess in a reserve fund, though no proper mechanism existed for this in the lease. The tenants requested its repayment, claiming that under the 1987 Act, the fund was held in trust. The landlord sought to use the fund to pay its legal expenses.
Held: It was wrong to hold money paid for one purpose, for another unspecified purpose, and the excess was to be repaid. The landlord was not able to charge his legal expenses to the fund.
Judges:
Lords Justice Ward, Mummery and Jonathan Parker
Citations:
Gazette 24-Oct-2002, Gazette 07-Nov-2002, Times 13-Nov-2002, [2002] EWCA Civ 1492, [2003] 1 EGLR 41
Links:
Statutes:
Landlord and Tenant Act 1987 42
Jurisdiction:
England and Wales
Landlord and Tenant, Costs
Updated: 26 August 2022; Ref: scu.177492
