Arnold v Britton & Ors

Arnold v Britton & Ors

The service charge clauses, properly construed, require the lessees to pay a fixed sum increasing at 10% per annum compounded, irrespective of the actual expenses incurred by the lessor, and do not operate as a cap or variable charge. The court cannot rewrite the bargain or introduce a cap not present in the language of the lease.

Parties
Claimant/respondent: Paddy Arnold; Defendants/appellants: Rodney Britton & Ors
Jurisdiction
England and Wales
Judgment Date
22 July 2013
Procedural Posture
Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Lease Interpretation, Service Charges, Landlord and Tenant, Contractual Construction
Land Law Contract Law Lease Interpretation Service Charges Landlord and Tenant Contractual Construction

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Parties

Paddy Arnold

Claimant/respondent

Rodney Britton & Ors

Defendants/appellants

Procedural Posture

Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal

Legal Issues

  1. 1 Proper construction of service charge clauses in long leases
  2. 2 Whether the service charge is fixed or variable and subject to a cap
  3. 3 Whether the service charge falls within the meaning of s.18(1) of the Landlord and Tenant Act 1985

Ratio Decidendi

The service charge clauses, properly construed, require the lessees to pay a fixed sum increasing at 10% per annum compounded, irrespective of the actual expenses incurred by the lessor, and do not operate as a cap or variable charge. The court cannot rewrite the bargain or introduce a cap not present in the language of the lease.

Court Disposition

Appeal dismissed

Orders

  • Declarations granted in favour of the lessor: the service charge is a fixed sum rising by 10% per annum compounded, not subject to a cap, and not a variable service charge under s.18 of the Landlord and Tenant Act 1985.