Recoverable Costs in Leasehold and Residential Property Cases

More recently, the Tribunal procedure committee, took the step of reviewing a consultation paper which been placed before it, concerning whether or not a cap should be put in place in relation to costs recoverable in leasehold and residential property cases under the unreasonable behaviour provisions.

 

Where a party is considered to have behaved unreasonably, costs are recoverable by the other party; which can result in significant cost awards as against the defaulting party.

 

The suggestion was that costs should be capped, to prevent cases from becoming needlessly costly, and to prevent the costs awards becoming a penalty in relation to the transaction. Whilst the Tribunal procedure committee was of the opinion that unreasonable behaviour costs were being threatened as a deterrent to prevent lessees and occupiers from bringing or continuing challenges; ultimately a cap would not resolve the situation, and would be a penalty were parties truly had behaved unreasonably.

 

They therefore believed that further education of parties as to when unreasonable behaviour costs could be awarded would be more appropriate then capping costs.

 

However, the Committee has indicated that they will be keeping this matter under review, and therefore the possibility of a cap being put in place in the future remains.

 

If you have any further queries concerning costs before the tribunal, or indeed concerning any matters before the tribunal, please do not hesitate to contact this firm's Real Estate Department on 01702 338 338 or llancaster@paulrobinson.co.uk.