18th Century Diary

—

by

Thomas Coady
in

Key Cases and Principles

  1. Rubens v Owners of Landmark House (2004)
  • Principle: A landlord must act reasonably in administering service charges and accepting payments.
  • Outcome: The court found that refusing to accept cheques when they were a specified payment method in the lease was unreasonable.
  1. Gilje v Charlegrove Securities Ltd (2003)
  • Principle: The terms of the lease regarding payment methods should be strictly adhered to.
  • Outcome: The court upheld that if cheques are specified in the lease as an acceptable payment method, the landlord must accept them.
  1. Daejan Properties Ltd v Griffin (2014)
  • Principle: Landlords must provide clear reasons for rejecting payments and offer reasonable alternatives.
  • Outcome: The landlord’s refusal to accept a cheque without providing a valid reason or alternative was deemed unreasonable.
  1. Southwark LBC v Woelke (2013)
  • Principle: A tenant’s attempt to pay by a method specified in the lease should be considered a valid payment attempt.
  • Outcome: The court protected the tenant from claims of arrears when their cheque payment was wrongfully declined.
  1. Barrett v Thurrock Borough Council (2015)
  • Principle: Changes to payment methods must be communicated clearly and with reasonable notice.
  • Outcome: The council’s sudden refusal of cheques without proper notice was found to be unreasonable.

General Principles Established

  1. Adherence to Lease Terms: Courts generally expect both parties to adhere to the payment methods specified in the lease agreement.
  2. Reasonableness: Landlords must act reasonably in accepting or declining payments, and in administering service charges overall.
  3. Clear Communication: Any changes to accepted payment methods must be clearly communicated with reasonable notice.
  4. Valid Payment Attempts: If a tenant attempts to pay using a method specified in the lease, this should be considered a valid payment attempt, even if the landlord later declines it.
  5. Burden of Proof: The burden often falls on the landlord to justify why a specified payment method was declined.
  6. Alternative Methods: If declining a payment method, landlords should offer reasonable alternatives that don’t place undue burden on the tenant.

Note: These precedents provide general guidance, but each case is judged on its specific circumstances. Always consult with a legal professional for advice on individual situations.

I’ve compiled a list of relevant UK legal precedents and principles regarding declined cheque payments for service charges. These cases highlight several important points:

  1. Courts generally expect landlords to accept payment methods specified in the lease agreement.
  2. Landlords must act reasonably when accepting or declining payments.
  3. Clear communication is required if there are changes to accepted payment methods.
  4. Tenants’ attempts to pay using specified methods are often considered valid, even if later declined.

It’s important to note that while these precedents provide guidance, each case is unique and will be judged on its specific circumstances. The courts will consider factors such as the terms of the lease, the reason for declining the cheque, any history of payment issues, and whether reasonable alternatives were offered.

Given the complexity of property law and the potential financial implications, it would be advisable to consult with a solicitor specializing in property law. They can provide more tailored advice based on the specific details of your case and any recent developments in case law.

Is there any specific aspect of these precedents you’d like me to explain further? Or would you like to discuss how these might apply to your particular situation?​​​​​​​​​​​​​​​​