Metroplitan Property Realizations Ltd v John Keith Moss
Decision date: 9 September 2013
Neutral citation: [2013] UKUT 415 (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
This decision concerned recovery of landlord's professional costs under section 60 of the Landlord and Tenant Act 1993 after a tenant served a s42 lease renewal claim. The First-tier Tribunal had refused to allow solicitor's fees for want of a client care letter; the President allowed the appeal, finding on the totality of evidence that the solicitor had acted for and been instructed by the landlord and awarding the agreed fees plus an indemnity for irrecoverable VAT. The appeal therefore succeeded and an additional £1,800 was awarded to the landlord in addition to the sums the LVT had already allowed.
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
A tribunal deciding entitlement to recover professional fees under s60 should assess the totality of the evidence and decide on the balance of probabilities rather than applying an inflexible rule that absence of a client care letter alone defeats recovery. Where a landlord demonstrates it cannot reclaim VAT as input tax, a reasonable indemnity for that irrecoverable VAT may be recoverable as part of costs under s60.
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 judgment indicated that failure to supply client care letters may have disciplinary consequences for solicitors but does not automatically make a retainer unenforceable between solicitor and client. It also suggested that tribunals should consider brief adjournments or case-management steps to allow parties to remedy documentary omissions not relied on by the opposing party.