FirstPort Property Services Ltd v Settlers Court RTM Company Ltd & Ors [2019] UKUT 0243 (LC)

The Upper Tribunal has today handed down judgment in this matter, where it was asked to consider whether the decision of the Court of Appeal in Gala Unity v Ariadne Road RTM Co [2012] EWCA Civ 1372 was decided per incuriam. The Tribunal (Judge McGrath) decided it was not, such that the appeal was bound to fail. However, the Tribunal did recognise the very real practical difficulties that arise in multi-block estates where one of those blocks exercises the right to manage, if the construction of the Commonhold and Leasehold Reform Act 2002 as determined by the Court of Appeal in Gala is correct. It also recognised the more general importance of the issue raised in the appeal. FirstPort has one month to seek permission to appeal to the Court of Appeal or for a certificate that the matter is suitable for consideration by the Supreme Court. If its appeal ultimately succeeds, the ramifications for the Right to Manage on multi-block estates would be significant, as it would confirm that a RTM company in respect of a block only acquires the right to manage that block, and not the wider estate on which it is located. Simon Allison acted for the appellant management company. The full decision can be found here.