Bradley & Anor v Abacus Land 4 Ltd [2025] EWCA Civ 1308 (16 October 2025)

Bradley & Anor v Abacus Land 4 Ltd [2025] EWCA Civ 1308 (16 October 2025)

The landlord was entitled under the lease to allocate the entirety of gym costs to the residential leaseholders, provided its decision was one a reasonable landlord could reach. The Court found Abacus's decision fell within the range of permissible decisions and was not unreasonable in the contractual sense. The Upper Tribunal erred in substituting its own view for the landlord's discretion.

Citation
[2025] EWCA Civ 1308
Parties
Applicant / Respondent to Appeal: Graham Bradley; Applicant / Respondent to Appeal: Michael Rhodes; Respondent to Application / Appellant: Abacus Land 4 Ltd
Jurisdiction
England and Wales
Judgment Date
16 October 2025
Procedural Posture
Appeal From Upper Tribunal (lands Chamber) / Court of Appeal Judgment
Outcome
Appeal allowed; Upper Tribunal decision set aside; First-tier Tribunal decision restored.
Legal Topics
Service Charges, Lease Interpretation, Contractual Discretion, Reasonableness, Jurisdiction of Tribunal
Property Law Landlord and Tenant Service Charges Lease Interpretation Contractual Discretion Reasonableness Jurisdiction of Tribunal

Case Brief

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Parties

Graham Bradley

Applicant / Respondent to Appeal

Michael Rhodes

Applicant / Respondent to Appeal

Abacus Land 4 Ltd

Respondent to Application / Appellant

Procedural Posture

Appeal From Upper Tribunal (lands Chamber) / Court of Appeal Judgment

Legal Issues

  1. 1 Whether landlord acted reasonably in allocating 100% of gym costs to residential leaseholders
  2. 2 Proper interpretation of 'acting reasonably' in lease discretion
  3. 3 Jurisdiction of tribunal under s.27A Landlord and Tenant Act 1985

Ratio Decidendi

The landlord was entitled under the lease to allocate the entirety of gym costs to the residential leaseholders, provided its decision was one a reasonable landlord could reach. The Court found Abacus's decision fell within the range of permissible decisions and was not unreasonable in the contractual sense. The Upper Tribunal erred in substituting its own view for the landlord's discretion.

Court Disposition

Appeal allowed; Upper Tribunal decision set aside; First-tier Tribunal decision restored.

Orders

  • The appeal is allowed.
  • The decision of the Upper Tribunal is set aside.