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England and Wales Court of Appeal (Civil Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> Newman v Framewood Manor Management Co Ltd [2012] EWCA Civ 159 (21 February 2012) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2012/159.html Cite as: [2012] EWCA Civ 159 |
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ON APPEAL FROM THE SLOUGH COUNTY COURT
MR RECORDER PULMAN QC
Strand, London, WC2A 2LL |
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B e f o r e :
LADY JUSTICE ARDEN
and
LORD JUSTICE TOULSON
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MRS EUNICE ROBERTA NEWMAN |
Appellant |
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- and - |
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FRAMEWOOD MANOR MANAGEMENT CO LTD |
Respondent |
____________________
WordWave International Limited
A Merrill Communications Company
165 Fleet Street, London EC4A 2DY
Tel No: 020 7404 1400, Fax No: 020 7404 1424
Official Shorthand Writers to the Court)
Mr Mark Jones (instructed by Rowberrys) for the Respondent
Hearing date : 17 November 2011
____________________
Crown Copyright ©
Lady Justice Arden:
a) A covenant to take out buildings and liability insurance (schedule 8, paragraph 2);
b) A covenant to keep certain recreational facilities, including an indoor swimming pool and a whirlpool, in good order and repair (schedule 8, paragraph 4);
c) A covenant to keep stairs and hallways in good repair (schedule 8, paragraph 6).
"the … Company shall not be liable or responsible for any damage suffered by the Lessee or any servant agent or licensee of the Lessee or any member of the Lessee's family … through any defect in any fixture conduit staircase or thing in or upon [Framewood Manor] or any part thereof … or through the neglect or fault or misconduct of any servant agent contractor or workman whatsoever employed by … the Company in connection with [Framewood Manor] except insofar as any such liability may be covered by insurance effected … by the Company."
"In my judgment, [the exoneration clause] means what it says on its face. The Company is not liable to pay damages for defects now complained of, unless that liability is covered by insurance. There is no reason not to give the words their ordinary and natural meaning. Mr. Newman in particular had occasion to be involved on both sides, first as a director and also as a lessee. In those circumstances, given that there is a full remedy available by specific performance, I do not regard any of the arguments defeating this exemption clause as having any weight. " (judgment, paragraph 20)
"Jacuzzi or spa bath The original spa bath or jacuzzi, was a domestic model which has proved inadequate. It had dirty water, there was a filtration problem, there were other problems to do with the fact that it was a domestic model and not designed for the users who lived in 19 adjacent apartments. The defendant company decided to switch it off and to replace it with a sauna. The spa bath or jacuzzi is referred to in the lease at (i) on page 12. I regard this as a substantial part of the rights of the tenants. The defendants argue that a replacement with a sauna was enough, and that this was reasonable, because that is what the tenants by a majority voted to do. A jacuzzi however is not the same as a sauna. In my judgment, the lack of the jacuzzi has to be set against the installation of the sauna. Any loss by removal of the inadequate jacuzzi is wholly covered by its replacement by the sauna, so although it is materially different, I am not able to say that there is any cause of loss of damage which has been sustained."
"It is remiss of me that I had not appreciated that specific performance involving reinstatement of a jacuzzi was still sought. I am not able to order specific performance for the reinstatement of a jacuzzi, for the following reasons.
A sauna has now been installed in the place of the jacuzzi. I have found that there is financially no loss in having the sauna rather than the jacuzzi. Put slightly differently, no award of damages could be made. Secondly, the cost of a new and better quality non-domestic jacuzzi, is put at over £30,000. The figures are what a layman would call ball park figures, and I reduce it to £20,000 as being the more likely and realistic figure.
I have to balance the cost to be incurred by the defendant company in carrying out the installation of a better quality jacuzzi, against what I have found to be no award of damages because the sauna is a sufficient replacement of the domestic jacuzzi that was there originally. In balancing these, I do not consider that specific performance could be ordered."
"Defective and missing equipment in the gym. This has now been replaced, so I am asked only to assess what loss there has been to Mrs. Newman or to Mr. Newman by the delay in replacing the equipment, lasting about 1 year. Mrs. Newman does not refer to ever going into the gym in her statement, except for the purpose of seeing that there were some defects. Mr. Newman does not refer to the gym or its equipment in his statement, as a matter of loss to him. I regard this loss as so trifling as not to be worthy of any damages."
The exoneration clause
The Doorway claim
"In my judgment, the Company's duty to Mrs. Newman as lessee was as follows. They could not lawfully block the door, other than on a temporary basis. Mrs. Newman had a right to use the door, pursuant to her lease (see the fourth Schedule at paragraph 1 and paragraph 4). I find that access through that door was a quasi-easement. Secondly, the Company could not 'substantially' alter its obligations to a lessee, unless all the owners, i.e. the lessees, had 'approved in writing,' doing this (see schedule 8, paragraph 14 at page 43). I find that any permanent blocking up of the door would substantially reduce the Company's obligations."
"36. I am asked by Mrs. Newman to order that the door should now be reopened, but I am not able to order that for the following reasons. Such an order would have the immediate effect of causing further damage to the paintwork, the walls, the ceilings and the metalwork of the banisters and on the door. It would in addition cause mould to grow again, which I accept is a health hazard. This would mean that significant further expense would have to be incurred by the company, that is all the residents including the Newmans, on a regular basis. Though not recoverable in law, to which I refer later, the value of apartments 18 and 19 would again be reduced if either was to be sold."
"But I do not find that this door cannot be opened in the future. The agreed expert's report now explains that the current problem is due to a difference in air pressure between the indoor swimming pool room and the stair hall. That can be cured by what is recommended. This suggestion is firstly modification or replacement of the pool hall ventilation equipment and under floor duct work; secondly, formation of a lobby between the door and the pool hall; thirdly, ducting to be blocked to prevent fresh air infiltration and heat loss, and fourthly, space heating and ventilation in the stair hall. Prices are not given for this work."
"38. If damages were to be awarded for breach of this covenant, there are two arguable heads of loss. Firstly there is the reduction of value in respect of the door being permanently blocked; and secondly, damages for inconvenience in having to go outside and round the building. As to the first loss, I am satisfied that that cannot be awarded as a matter of law. This is because such damages will only be incurred when the apartment is sold. It could be proved that an offer for sale had been sought from particular purchasers, and that they had made a reduced offer because the door was blocked, but no such evidence was put before me. It is important to remember that a speculative loss is not to be recovered in litigation of this kind. Secondly, the damages for inconvenience in having to go outside and round the building will be determined by the duration of that loss and how inconvenient it is. There will be periods during which advice and plans have to be made for the necessary works to be carried out, and secondly for the duration of the work being carried out. For such part of those periods which are reasonable, no damages would be payable. If either lasted an excessively long period, I consider that the damages would then be payable in respect of the excess period. So here, where no work has apparently been done except to get the expert's report, the period lasts from when the work [blocking up the Doorway] was done in May 2009, to October 2010.
In view of what I have earlier found, damages cannot be awarded because of [the exoneration clause].
39. Now, it may be said that [the exoneration clause] wholly defeats nearly all the Company's obligations, but that would be wrong. It does not defeat a claim for specific performance, and here I have decided that the door could lawfully be blocked up temporarily for the purpose of maintenance work. The defendants say that it was closed for the purpose of maintenance work, and that finding out what to do has taken a long time, part of that delay has been their concern about this litigation, and how much the costs would be. I do not regard the issue about costs as relevant to their decision as to what to do. I find that the delay is inordinate. It may also be wholly inexcusable. But I am not able to accept the claimant's case that the door has been shut permanently. Nor can I accept Mr. Newman's suggestion that the door was bricked up deliberately to anger him. There was no evidence to support such an allegation.
40. In those circumstances, I make those findings, and only a modest amount of damages is recoverable."
The Jacuzzi claim
i) The judge was wrong not to grant an order for specific performance;ii) The judge was wrong not to award damages for loss of amenity, and
iii) The judge was wrong not to award damages in lieu of specific performance
The tree-roots claim
The gym claim
Mr Knox submits that the judge's finding that the gym claim should be rejected because he found that Mrs Newman only visited the gym to find defects was perverse. In his witness statement, Mr Wall had made it clear that he had had discussions with Mr Newman about the replacement of the gym equipment because Mr Newman was one of the greatest users of the gym. Moreover, Mrs Newman gave evidence that she used the recreational facilities when her grandchildren came to stay. There was a clear breach of covenant in relation to the maintenance of gym equipment. Only the weights and a walking machine remained usable. In the circumstances the judge erred in not awarding damages for loss of amenity to Mrs Newman.
Disposal of this appeal
Number of item | Description of item | Amount in £ |
1. | Blocking of the Doorway | 1,000 |
2. | Loss of the use of the jacuzzi: July 2008 to December 2010 | 1,000 |
3. | Future loss of use of the jacuzzi | 2,500 |
4 | Lack of proper maintenance of gymnasium equipment | 500 |
5 | Damage to the tarmac on the drive | Nil |
6. | Loss of amenity in relation to the steam room (amount assessed by the judge and not challenged) |
250 |
7. | Damage to wardrobe (amount assessed by judge and not challenged) | 1,202.50 |
Total |
===== 6,452.50 ===== |
Lord Justice Toulson:
Lord Justice Pill: