Caoimhe McKearney & Alexander Bastin welcome a decision from the Upper Tribunal that has provided clarity on the “unreasonable” test for costs awards in the Property Tribunal
- In Willow Court Management Company (1985) Limited v Alexander the Upper Tribunal made clear that costs orders under r 13(1)(b) of the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013 ought to be relatively rare.
Rule 13(1) of the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013 (SI 2013/1169) provides that the Property Chamber of the First Tier Tribunal (FTT) may order costs (other than fees) in several limited circumstances. Of most interest to landlords, managing agents and others involved in FTT cases is r 13(1)(b), which provides for costs orders (in agricultural land and drainage, residential property or leasehold cases) “if a person has acted unreasonably in bringing, defending, or conducting proceedings”.
The introduction of r 13(1) on 1 July 2013 looked to mark a significant departure from the rules of the old Leasehold Valuation Tribunal,
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