Chuan-Hui & Ors K Group Holdings Inc & Ors [2021] EWCA Civ 403 (19 March 2021))

Chuan-Hui & Ors K Group Holdings Inc & Ors [2021] EWCA Civ 403 (19 March 2021))

Service charges collected by a tribunal-appointed manager under section 24 of the Landlord and Tenant Act 1987 retain their character as 'service charges' within the meaning of section 18 of the Landlord and Tenant Act 1985. The Maintenance Trustee's right to recover arrears was suspended during the manager's appointment and accrued to the Trustee when the management order ended. The Deed of Assignment was unnecessary but not invalid, and the lessees failed to plead their challenge adequately.

Citation
[2021] EWCA Civ 403
Parties
Appellants: Oung Lin Chuan-Hui & Others; Respondent: K Group Holdings Inc; Respondent: Aldford House (Park Lane) Maintenance Trustee Limited; Respondent: Park Lane Holdings Inc
Jurisdiction
England and Wales
Judgment Date
19 March 2021
Procedural Posture
Appeal / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Service Charges, Appointment of Manager, Leasehold Management, Assignment of Debt, Jurisdiction of Tribunal
Property Law Landlord and Tenant Law Service Charges Appointment of Manager Leasehold Management Assignment of Debt Jurisdiction of Tribunal

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Parties

Oung Lin Chuan-Hui & Others

Appellants

K Group Holdings Inc

Respondent

Aldford House (Park Lane) Maintenance Trustee Limited

Respondent

Park Lane Holdings Inc

Respondent

Procedural Posture

Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Are service charges collected by a tribunal-appointed manager under section 24 of the Landlord and Tenant Act 1987 'service charges' within the meaning of section 18 of the Landlord and Tenant Act 1985?
  2. 2 Does the Maintenance Trustee have the right to recover arrears accrued during the manager's appointment after the management order ends?
  3. 3 Was the Deed of Assignment executed by the manager valid and effective to assign arrears to the Maintenance Trustee?

Ratio Decidendi

Service charges collected by a tribunal-appointed manager under section 24 of the Landlord and Tenant Act 1987 retain their character as 'service charges' within the meaning of section 18 of the Landlord and Tenant Act 1985. The Maintenance Trustee's right to recover arrears was suspended during the manager's appointment and accrued to the Trustee when the management order ended. The Deed of Assignment was unnecessary but not invalid, and the lessees failed to plead their challenge adequately.

Court Disposition

Appeal dismissed

Orders

  • The sums collected by the manager are service charges under the 1985 Act.
  • The Maintenance Trustee is entitled to recover arrears accrued during the manager's appointment.