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England and Wales Court of Appeal (Civil Division) Decisions
You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> Cinnamon Ltd & Ors v Morgan  EWCA Civ 1616 (18 October 2001)
Cite as:  2 P & CR 10,  EWCA Civ 1616,  L & TR 20
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IN THE COURT OF APPEAL (CIVIL DIVISION)
ON APPEAL FROM THE WANDSWORTH COUNTY COURT
(sitting as Brentford)
(His Honour Judge Oppenheimer)
Thursday 18th October, 2001
B e f o r e :
|(1) CINNAMON LIMITED|
|(2) PLANTATION WHARF MANAGEMENT LIMITED|
|- v -|
|FIONA SUSAN MORGAN|
Smith Bernal Reporting Limited, 190 Fleet Street,
London EC4A 2AG
Tel: 020 7421 4040
Official Shorthand Writers to the Court)
MR M HUTCHINGS (Instructed by Messrs Black Graft & Co, London NW3 5LL)
appeared on behalf of the Respondent
Crown Copyright ©
"Relevant costs shall be taken into account in determining the amount of a service charge payable for a period-
(a) only to the extent that they are reasonably incurred, and
(b) where they are incurred on the provision of services or the carrying out of works, only if the services or works are of a reasonable standard;
and the amount payable shall be limited accordingly."
"... an amount payable by a tenant of a dwelling as part of or in addition to the rent-
(a) which is payable ... for services, repairs, maintenance or insurance or the landlord's costs of management, and
(b) the whole or part of which varies or may vary according to the relevant costs."
"... the costs or estimated costs incurred or to be incurred by or on behalf of the landlord, or a superior landlord, in connection with the matters for which the service charge is payable."
"Whether the management company rather than Cinnamon comes within the definition of "the landlord" within s.18 (2) of the Landlord and Tenant Act 1985, ..."
"As to issue 3, it seems odd and potentially unjust that the statutory regime in the L & T Act 1985 does not apply where the service charges were incurred by the 2nd Claimant Management Company, rather than the 1st Claimant Landlord.
Is my understanding of Berrycroft correct?"
"The appeal court will not make an order allowing an appeal unless satisfied that the decision of the lower court was wrong."
"In the provisions of this Act relating to service charges-
`landlord' includes any person who has a right to enforce payment of a service charge; ..."
"As previously indicated, the judge concluded after a thorough review of the evidence that the quotations for insurance from Commercial Union were competitive compared with a quotation obtainable by a single management company acting alone and that the active and responsible management of the agency nominated by Sinclair was, taken overall, beneficial to the lessees. Consequently, the costs of the insurance were not unreasonably incurred."
"(1) This paragraph applies where a tenancy of a dwelling requires the tenant to insure the dwelling with an insurer nominated by the landlord.
(2) Where on an application made by the tenant under any such tenancy the court is satisfied that:
(b) the premiums payable in respect of any such insurance are excessive ...
the court may make an order requiring the landlord to nominate another insurer."
"None of the leases of the flats with which I am concerned require the tenant to insure at all, much less to insure with a nominated insurer. On the contrary it is the management company which covenants with each tenant to insure his flat as part of the block and that company is or may be required to insure with an issuer nominated by the landlord."