Small Claims Court - Legal fees

[Shiz441]

Hello, please can someone help me.

 

The freeholder of my flat pursued me for unpaid service charges through small claims at the county court. I settled the first charge with at the court as a gesture to try and get things sorted. I was also under a lot of pressure has a family member had just passed away. The second charge was more substantial and included major works. This was transferred to the LVT.

 

The LVT ruled that the service charges were not currently payable because the freeholder hadn't fully complied with Section 47 of the LTA 1987. However, they also said that i would have to pay once he issued the service charge form correctly. I have paid the outstanding service charges, though he still hasn't done any work to the property and in fact he never has. The LVT did not rule on the legal costs and transferred the case back to County court to make the determination.

 

These legal charges are for over £6k, more than the service charge demands. His solicitor is relying upon the following clause, to recover the legal costs, in my lease which states:

 

'To pay all costs charges and expenses including Solicitors Costs and Surveyors’ fees incurred by the Lessor for the purpose of or incidental to the preparation and service of a Notice under Section 146 of the Law of Property Act 1925 requiring the Lessee to remedy the breach of any of the covenants herein contained notwithstanding forfeiture for such breach may be avoided otherwise than by relief granted by the Court'

 

Please can someone help. I saw that under CPR 27 legal costs in Small Claims are limited to £260 but there has recently been a case where legal costs were awarded because the lease took precedence (Chaplair v Kumari, 2015).

 

In addition, i have just sold the property and it completes tomorrow. This is before the hearing is set to take place. I have also just asked for the claim to be struck out as the Claimant has not filed the statement of costs which were ordered to be served over 3 weeks ago.

 

Please can someone help me. Many thanks in advance

[AndyOrch]

Hi Shiz441

 

It was not a case of CPR r.27.14. preventing the costs claim in Chaplair v Kumari...rather CPR r.27.14 did not restrict the court from awarding costs recoverable under a contract under CPR r.44.5.

 

Regards

 

Andy

[Shiz441]

Hi Andy,

 

What does this mean for me? What's the best way to contest the legal costs?

 

Thank you

[AndyOrch]

Take a read of the following...

 

http://www.gwslaw.co.uk/wp-content/uploads/2013/03/part44.pdf

 

http://www.gwslaw.co.uk/wp-content/uploads/2013/03/pd_part44.pdf

 

And also CPR 44