Arnold v Britton & Ors [2013] EWCA Civ 902 (22 July 2013)

Arnold v Britton & Ors [2013] EWCA Civ 902 (22 July 2013)

The service charge clauses, properly construed, require lessees to pay a fixed sum increasing at 10% per annum (or triennially, depending on the lease version), irrespective of the lessor's actual outlay, and do not create a cap or a variable service charge within s.18(1) of the Landlord and Tenant Act 1985. The court cannot rewrite the bargain or introduce a cap not present in the language of the lease.

Citation
[2013] EWCA Civ 902
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), Judgment of Morgan J Dated 3 December 2012
Outcome
Appeal dismissed
Legal Topics
Service Charges, Lease Interpretation, Fixed Vs Variable Charges, Contractual Construction
Landlord and Tenant Contract Service Charges Lease Interpretation Fixed Vs Variable Charges 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), Judgment of Morgan J Dated 3 December 2012

Legal Issues

  1. 1 Whether the service charge clauses in the leases provide for annual compounded increases at 10% or are subject to a cap; whether the service charge is fixed or variable within the meaning of s.18(1) Landlord and Tenant Act 1985

Ratio Decidendi

The service charge clauses, properly construed, require lessees to pay a fixed sum increasing at 10% per annum (or triennially, depending on the lease version), irrespective of the lessor's actual outlay, and do not create a cap or a variable service charge within s.18(1) of the Landlord and Tenant Act 1985. The court cannot rewrite the bargain or introduce a cap not present in the language of the lease.

Court Disposition

Appeal dismissed

Orders

  • Declarations in favour of the lessor affirmed: lessees must pay fixed service charges increasing at 10% per annum or triennially as per lease terms; not a variable service charge under s.18(1) Landlord and Tenant Act 1985.