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You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> Eastpoint Block A RTM Company Ltd v Otubaga [2023] EWCA Civ 879 (25 July 2023) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2023/879.html Cite as: [2023] EWCA Civ 879, [2023] HLR 41, [2023] WLR 3896, [2023] 1 WLR 3896, [2023] WLR(D) 325 |
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ON APPEAL FROM THE UPPER TRIBUNAL (LANDS CHAMBER)
MARTIN RODGER KC
[2022] UKUT 319 (LC)
Strand, London, WC2A 2LL |
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B e f o r e :
LADY JUSTICE KING
and
LADY JUSTICE ANDREWS
____________________
EASTPOINT BLOCK A RTM COMPANY LIMITED |
Appellant |
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- and - |
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AKEHINDE OLUFUNLOLA OTUBAGA |
Respondent |
____________________
The Respondent did not appear and was not represented
Hearing date : 18/07/2023
____________________
Crown Copyright ©
Lord Justice Lewison:
Introduction
The background
"A landlord under a long lease of a dwelling may make an application to the appropriate tribunal for a determination that a breach of a covenant or condition in the lease has occurred."
The right to manage
"(1) This section and section 97 apply in relation to management functions relating to the whole or any part of the premises.
(2) Management functions which a person who is landlord under a lease of the whole or any part of the premises has under the lease are instead functions of the RTM company.
(3) And where a person is party to a lease of the whole or any part of the premises otherwise than as landlord or tenant, management functions of his under the lease are also instead functions of the RTM company.
(4) Accordingly, any provisions of the lease making provision about the relationship of—
(a) a person who is landlord under the lease, and
(b) a person who is party to the lease otherwise than as landlord or tenant,
in relation to such functions do not have effect.
(5) "Management functions" are functions with respect to services, repairs, maintenance, improvements, insurance and management.
(6) But this section does not apply in relation to—
…
(b) functions relating to re-entry or forfeiture."
"(2) Where a person who is—
(a) landlord under a long lease of the whole or any part of the premises, or
(b) party to such a lease otherwise than as landlord or tenant,
has functions in relation to the grant of approvals to a tenant under the lease, the functions are instead functions of the RTM company.
(3) Accordingly, any provisions of the lease making provision about the relationship of—
(a) a person who is landlord under the lease, and
(b) a person who is party to the lease otherwise than as landlord or tenant,
in relation to such functions do not have effect."
"An application to the appropriate tribunal for a determination under subsection (1)(b) may be made by—
(a) the RTM company,
(b) the tenant,
(c) if the approval is to a tenant approving an act of a sub-tenant, the sub-tenant, or
(d) any person who is landlord under the lease."
"(1) This section applies in relation to the enforcement of untransferred tenant covenants of a lease of the whole or any part of the premises.
(2) Untransferred tenant covenants are enforceable by the RTM company, as well as by any other person by whom they are enforceable apart from this section, in the same manner as they are enforceable by any other such person.
(3) But the RTM company may not exercise any function of re-entry or forfeiture.
(4) In this Chapter "tenant covenant", in relation to a lease, means a covenant falling to be complied with by a tenant under the lease; and a tenant covenant is untransferred if, apart from this section, it would not be enforceable by the RTM company.
(5) Any power under a lease of a person who is—
(a) landlord under the lease, or
(b) party to the lease otherwise than as landlord or tenant,
to enter any part of the premises to determine whether a tenant is complying with any untransferred tenant covenant is exercisable by the RTM company (as well as by the landlord or party)."
"(2) In this Chapter "lease" and "tenancy" have the same meaning and both expressions include (where the context permits)—
(a) a sub-lease or sub-tenancy, and
(b) an agreement for a lease or tenancy (or for a sub-lease or sub-tenancy),
but do not include a tenancy at will or at sufferance.
(3) The expressions "landlord" and "tenant", and references to letting, to the grant of a lease or to covenants or the terms of a lease, shall be construed accordingly."
"(1) A landlord under a long lease of a dwelling may not serve a notice under section 146(1) of the Law of Property Act 1925 (c. 20) (restriction on forfeiture) in respect of a breach by a tenant of a covenant or condition in the lease unless subsection (2) is satisfied.
(2) This subsection is satisfied if—
(a) it has been finally determined on an application under subsection (4) that the breach has occurred,
(b) the tenant has admitted the breach, or
(c) a court in any proceedings, or an arbitral tribunal in proceedings pursuant to a post-dispute arbitration agreement, has finally determined that the breach has occurred.
(3) But a notice may not be served by virtue of subsection (2)(a) or (c) until after the end of the period of 14 days beginning with the day after that on which the final determination is made.
(4) A landlord under a long lease of a dwelling may make an application to the appropriate tribunal for a determination that a breach of a covenant or condition in the lease has occurred.
(5) But a landlord may not make an application under subsection (4) in respect of a matter which—
(a) has been, or is to be, referred to arbitration pursuant to a post-dispute arbitration agreement to which the tenant is a party,
(b) has been the subject of determination by a court, or
(c) has been the subject of determination by an arbitral tribunal pursuant to a post-dispute arbitration agreement."
"An application may be made to the appropriate tribunal for a determination whether a service charge is payable and, if it is, as to—
(a) the person by whom it is payable,
(b) the person to whom it is payable,
(c) the amount which is payable,
(d) the date at or by which it is payable, and
(e) the manner in which it is payable."
""landlord" includes any person who has a right to enforce payment of a service charge"
"(1) Where, in any proceedings before a court, there falls for determination a question which the First-tier Tribunal or the Upper Tribunal would have jurisdiction to determine under an enactment specified in subsection (2) on an appeal or application to the tribunal, the court—
(a) may by order transfer to the First-tier Tribunal so much of the proceedings as relate to the determination of that question;
(b) may then dispose of all or any remaining proceedings pending the determination of that question by the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal, as it thinks fit."
The argument
"Untransferred tenant covenants are enforceable by the RTM company, as well as by any other person by whom they are enforceable apart from this section, in the same manner as they are enforceable by any other such person."
Practicalities
"An RTM company is, because of the statutory provisions which regulate it, not a creature of substance. It is a company limited by guarantee with no share capital and no assets other than the right to enforce the tenant covenants in the leases of the flats in its building, otherwise than by forfeiture."
Is the application "management"?
Is the application covered by section 100 (2)?
Is the application on the forfeiture side of the line?
Result
Lady Justice King:
Lady Justice Andrews:
"The FTT's jurisdiction under section 168, 2002 Act, is to determine whether a breach of covenant has occurred. Before the right to forfeit for a breach of covenant can be waived, it is necessary that a breach of covenant must first have been committed. It is the determination of that prior question which has been allocated by statute to the FTT." [Emphasis added].
"it is clear on the face of the statute that the FTT's only task is to determine whether a breach of covenant has occurred. Whether any breach has been remedied, or the right to forfeit for that breach has been waived, are not questions which arise under this jurisdiction".