Assethold Limited v 7 SUNNY GARDENS ROAD RTM COMPANY LIMITED
Decision date: 16 October 2013
Neutral citation: [2013] UKUT 509 (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 appeal concerned whether an RTM company could acquire the right to manage where one of three qualifying long leaseholders died before incorporation. The Upper Tribunal held the LVT was wrong to treat the deceased leaseholder as remaining a qualifying tenant and a member on incorporation; her legal interest passed on death to her personal representatives, who should have been given a s78 invitation. Because the RTM company produced no evidence of lack of prejudice from non-compliance with the notice requirements, the claim to acquire the right to manage was dismissed.
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
On the death of an individual proprietor of a lease the legal estate passes by operation of law to the personal representatives (or Public Trustee) so that those personal representatives are the qualifying tenants for the purposes of the right to manage provisions; membership of an RTM company depends on being a qualifying tenant at the relevant time, and a company register does not conclusively establish membership against evidence (such as a death certificate).
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 that a notice addressed to the flat may suffice to communicate with personal representatives for s79(8) purposes where no alternative address is notified, and suggested that where an RTM company fails to comply with statutory notice requirements the usual remedy will be dismissal unless the company adduces evidence showing no relevant prejudice.