Riverside Crem 3 Limited v Sol Unsdorfer & Ors

Decision date: 4 April 2022

Neutral citation: [2022] UKUT 98 (LC)

Overall AI summary confidence: medium

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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: medium

Riverside Crem 3 Limited appealed a First-tier Tribunal (FTT) decision varying a Part II management order so Riverside, as successor landlord, could be charged service-charge liabilities following CREM's assignment. The Upper Tribunal refused permission to raise Riverside’s new argument on appeal that transferees are not bound by existing management orders without fresh Part II procedure, dismissed the appeal, and left the FTT’s variation in force. The Tribunal treated Riverside’s contention as a procedural precondition that could be waived and found no basis to reopen the original proceedings.

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: medium

The decision indicates two linked legal propositions as its operative ratio: (1) an appellate tribunal may refuse to admit a new point of law on appeal where it would have required different conduct in the original proceedings, other parties have acted to their detriment in reliance on the omission, or no cogent explanation is given for the omission; and (2) procedural preconditions to tribunal jurisdiction (such as notice or fresh Part II steps) can be waived in appropriate circumstances, so their absence does not automatically render subsequent orders beyond the tribunal’s power.

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 records unresolved debate about the precise limits on varying an existing management order to bind a transferee without fresh Part II procedure and observes that factual inquiries (e.g. whether the transfer was for value) would likely have been necessary had the point been run below; it suggests that the broader question may need further consideration in another case.