Service charge consultation regime — costs fallout

The long-running saga of Daejan Investments Ltd v Benson and Others [2013] UKSC 54 at last reaches what should be its ultimate conclusion as far as the courts are concerned. Both landlords and tenants will have an interest in how the court has dealt with the question of costs.

By way of reminder, in March 2013 the Supreme Court granted Daejan, on appeal, a dispensation from the service charge consultation requirements contained in the Landlord and Tenant Act 1985.

The dispensation was conditional upon Daejan reducing the cost of the works by £50,000 and certain terms as to the costs of the proceedings. The Supreme Court has now been asked to decide various matters that could not be agreed between the parties, principally as to costs…

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