Court of Appeal judgment in 89 Holland Park (Management) Limited v Dell

The Court of Appeal has today handed down judgment in 89 Holland Park (Management) Limited v Dell. The appeal concerned whether significant costs incurred by the Appellants in relation to disputes with a neighbouring landowner were recoverable as service charges under sweeper provisions in the Respondents’ lease.

At first instance, the FTT held that the service charges were recoverable. However, this was overturned on appeal in the UT and the Appellants appealed to the Court of Appeal.

The Court of Appeal has dismissed the appeal. The Court found that Judge Cooke was correct to conclude that the costs are not recoverable under the provisions of the lease relied on by the Appellants below and also found that the costs are not recoverable under the definition of General Expenditure (a new point on appeal).

The decision reiterates that context is key when determining the intended scope of general words in sweeper provisions.

Mattie Green (led by Mark Loveday) acted for the successful Respondents, instructed by Amanda McNeil and Hollie Jordan-Wright at Howard Kennedy LLP.