BIR/00FY/LDC/2020/0007 — service charge decision
In BIR/00FY/LDC/2020/0007, decided 16 September 2020, the First-tier Tribunal considered 16 disputed service charge items at Cranbrook House, Cranbrook Street, Nottingham and reached a mixed result: 8 items were reduced or disallowed. Full decision on GOV.UK below.
Property: Cranbrook House, Cranbrook Street, Nottingham
Decision date: 16 September 2020
Full decision: Read on GOV.UK
Managing agent named in the decision: Highstar Ltd.
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Other charges (2020-21) | £193,158 | — | Disallowed entirely | Other grounds |
| Legal & professional costs (2020-21) | £83,430 | — | Allowed in full | Other grounds |
| Repairs & maintenance (2020-21) | £37,924.80 | — | Allowed in full | Other grounds |
| Utilities (2020-21) | £2,994 | — | Allowed in full | — |
| Management fees (2020-21) | £17,354.64 | — | Disallowed entirely | Other grounds |
| Other charges (2020) | £340,656.50 | £0 | Disallowed entirely | Other grounds |
| Legal & professional costs (2020) | £340,656.50 | £0 | Disallowed entirely | Works not necessary, Other grounds |
| Repairs & maintenance (2020) | £37,924.80 | £37,924.80 | Allowed in full | Other grounds |
| Lifts (2020) | £2,994 | £2,994 | Allowed in full | Other grounds |
| Management fees (2020) | £17,354.64 | £0 | Disallowed entirely | Works not necessary, Other grounds |
| Staffing & concierge (2020-21) | £193,158 | — | Disallowed entirely | Other grounds |
| Major works (2020-21) | £37,924.80 | — | Allowed in full | Other grounds |
| Lifts (2020-21) | £2,994 | — | Allowed in full | Other grounds |
| Staffing & concierge (2020) | £193,158 | — | Disallowed entirely | Other grounds |
| Major works (2020) | £340,656.50 | £0 | Disallowed entirely | Other grounds |
| Utilities (2020) | £2,994 | £2,994 | Allowed in full | Other grounds |
Section 20ZA dispensation: conditional.
Key passages (verbatim)
“In our view, the provision of personnel to attend a building to watch for fire is not a contract of works but a contract for a service. The core subject matter of the contract is the provision of human resources. There is nothing that the watchers have to do to the building.”
“We therefore grant dispensation from consultation in respect of the proposal to engage an appropriate professional adviser to progress the necessary work on the building contract and the application for funding under the BSF.”
“Despite our concerns about the impact upon the lessees as described above, we will grant dispensation for these works. The reason is that the building is subject to an Improvement Notice and the Applicants must either challenge the Notice or arrange for the works required in that Notice to be completed by 2 December.”
“We take the view that the cost of a new cable for the lift shaft is essentially part of the cost of remedial work to the non-cladding fire safety works required. There is no doubt that these works are works on a building and they are over the threshold such that either consultation or dispensation are required.”
“It is far too premature to grant dispensation for a small part of the costs that may be sought from lessees if this eventuality were to come to pass.”
“This element of the application is refused.”
“Although the Tribunal had directed that the Applicants provide a statement explaining the purpose of the application and the reasons for it, what was provided was a single sheet with 20 lines of text, which was entirely inadequate to fully explain the factual context and the reasons as to why the Applicants felt they needed to make the application.”
“It is surprising to the Tribunal that the Applicants do not have and have not produced this documentation.”
“We were disappointed that Mrs Levene seemed unaware of significant events at the building which she was managing.”
“the informal consultation that had taken place thus far does seem to us to be inadequate to develop any confidence in the Lessees that the Applicants are competent, acting transparently, or deserve the trust and confidence of the Lessees.”
This summary is assembled from the structured record of the published decision; amounts appear only where the tribunal stated them. Always rely on the full decision itself.