ALEP Barrister EllodiE Gibbons spokeonthe
FTT at ALEP’s autumn
conference.
TheSAME but diffErEn
Here shetakes a closer look at the new leasehold tribunal
Tribunal of thePropertyChamber (FTT). So what is the FTT andwhat does it do? Thosefamiliar with theLVT will know that
*
it dealtwithdisputesbetween residential landlords and tenants, primarily tenants underlongleases.Whilethe jurisdiction of theFTT is widerthanthatofthe LVT, as regardsresidential landlord andtenant disputes,its authorityisnodifferent. Consequently,the FTTisabletodealwith applications to varylongleases;determine the payability of service charges; acquire the Right toManage;appointamanager;and determine thetermsof acquisitionofnew leases and freeholdsbytenants.Hearingsbeforethe FTTwillbeheldinthe sameplacethatan LVThearing wouldhavebeen; chairmenand panelmembers will be the sameand they will continue to be referred to as “sir”or“madam”. So howis the FTT different fromthe LVT?
nEwrulES Since1July2013, allofthe oldprocedural and fees regulations have been replaced with the Tribunal Procedure (First-tier Tribunal) (PropertyChamber)Rules 2013 andany cases started before that date will have continued underthose rules. Theexception to this is costs(moreonthislater). Thenew rulesare designedtogivethe FTTmoreteeth,sothe FTThas beengiven greaterflexibility in terms of theorderswhich it canmake, including morepower to impose sanctionsfor failureto comply with therules andits owndirections.
48
July2013sawtheabolition, in England, of theLeasehold ValuationTribunal(LVT) and theintroductionofthe First-tier
Thenew rulesstart by setting outthe overriding objective,which is to enable the FTTtodealwithcases fairly andjustly. As a result, the FTT has been given very
wide powers in relation to theconductof
proceedings.Perhaps themost importantof theseisthe powertoextendorshorten the timeforcomplying with anyrule, practice direction or direction - even if the application for an extension is notmade until after the timelimit has expired.Where there has been afailure to comply with aruleordirection,the
Thebiggest change to therules is in respect of costs
FTTmay take ‘such action as it considers just’, whichmay include striking outaparty’s case; barring or restrictingaparty’s participationin theproceedings;ormakinganaward of costs, among other things.
CoStS Thebiggest changetothe rulesisinrespect of costs. It was, andremains,possible to obtain an order forthe reimbursementoffees paid to the Tribunal. However, in respect of costswhich onepartymayhaveincurred in bringing or defendinganapplication -for example thecost of solicitors or an expert surveyor -under theLVT rules, thosecosts couldonlyberecovered fromtheother side in certain circumstances. These were if that partyhad actedfrivolously,vexatiously,
abusively, disruptively or otherwise unreasonably in connection with the proceedings orwherethatparty’s application had been dismissed on the ground that it was frivolous, vexatiousoranabuse of process. In either case, themaximumamount of costs whichcould be recoveredwas £
500.Now, underthe FTTregime, it is stillnecessary to show that apersonhas actedunreasonably in bringing, defending or conducting proceedings buttheamount of costswhich can be recovered is unlimited.
HowdoEStHE
nEwSyStEMwork? Before taking a dispute to the FTT, the first thingtoconsidermustalwaysbewhether theremight be anotherway of resolvingthe problem. Foralongtime, leaseholders have beenlured to theLVT in thebeliefthatitisan informal,tenant-friendly placeinwhich to resolvedisputeswithout theriskofincurring huge costs. This has never been the case and this is even less so followingthe introduction of
theFTT.Yes,the LVTwas -and theFTT is-moreinformalthanacourt.However, anyone taking adispute to theFTT stillhas to formulateacase, producewritten documents andevidence, comply with rulesand directions andunderstandthe relevantlaw. Landlordsoften have greaterresources
than tenants and will engage solicitors, barristersand/orexpertwitnesses to help themprepareand present theircase,which canmeanthatanunrepresentedtenantisata severe
disadvantage.Alsothese professionals costmoney, andwhile the ability to recover
Issue17 Flat Living
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