Mary Middleton & Anor v Karbon Homes Limited
Decision date: 14 August 2023
Neutral citation: [2023] UKUT 206 (LC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
Two assured tenants appealed the First-tier Tribunal's approval of most service charges levied by Karbon Homes for Magdalene Court (2017–2021), contending Karbon had reclassified rent‑borne items as service charges and had misapportioned monitoring/remote‑help costs. The Upper Tribunal dismissed the appeal, finding clause 57 permits adding genuinely new services only after the required consultation and notice and does not allow reclassification of existing rent‑borne services into chargeable services without rent adjustment, and that the FTT’s factual findings on apportionment and reasonableness were not shown to be wrong.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
The decision indicates the operative ratio: a landlord may add a service to a service‑charge schedule only where the service is genuinely new and the tenancy’s consultation/notice process has been followed; reclassifying services previously provided without a separate charge into charged services is not permitted under clause 57 absent an appropriate adjustment to rent or tenant agreement.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The tribunal noted (obiter) that where a service‑charge demand lacks required statutory information the appropriate remedy is suspension of liability until a correct demand is served rather than automatic repayment of amounts already paid, and observed that failures by unrepresented tenants to plead or evidence points clearly can materially affect their ability to challenge FTT findings.