Successful conclusion of a large service arrears charge case
Fry & Co reached an out of court settlement
A leaseholder who had at one time been chair of the board of the freehold company fell out with the other directors. They then refused to pay their contribution to the service charge and sinking fund. This situation prevailed until the sum outstanding totalled over £40,000. One of the claims, amongst many, was that the sinking fund was over-funded. Despite resorting to solicitors, the matter persisted and remained unresolved. Meanwhile an external refurbishment was carried out, the cost of which vindicated the size of the sinking fund and the amount which had been collected each year.
Fry & Co on behalf of the freehold company, pursued the matter through the courts and just before the hearing date, an out of court settlement was reached which resulted in payment of all the arrears after an agreement to dispense with a demand for the landlord’s legal costs. Fry & Co persuaded the landlord that to go to court would incur higher unrecoverable legal costs than the amount that would be written off, so effectively it was a beneficial outcome for the landlord and all leaseholders.