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Upper Tribunal to rule on estoppel by convention

The Upper Tribunal (Lands Chamber) heard an appeal on Monday 6 February concerning when a management company can rely on estoppel by convention in order to recover service charges that have not been demanded in accordance with the terms of the lease.

Judge Behrens heard the appeal in Jetha & Jetha v Basildon Court Residents Co Ltd. The First-tier Tribunal (Property Chamber) had held that the management company was required, under deeds of covenant entered into with each lessee, to agree the level of advance service charges and sinking fund contribution at its AGM. The FTT(PC) held that the management company had not done so. The lessees were, however, estopped from disputing the payability of the charges because there was an established convention that the lessees would not insist on strict compliance with the condition precedent. The lessees appealed to the Upper Tribunal (Lands Chamber). Judgment has been reserved.

Robert Brown represented the respondent in the Upper Tribunal.