This article will assess how the Court calculates damages in disrepair claims.
A landlord owes certain duties to maintain the repair of a property that they have leased to a tenant. If a leased property falls into disrepair, the tenant may be able to claim against the landlord for damages. The tenant may also be able to counterclaim for disrepair where the landlord has brought a claim for property possession against the tenant. Where possession is being sought under the grounds of rent arrears, the tenant can assert that the Claimant landowner is not entitled to the full amount of rent owed.
Valuing a County Court disrepair claim
The two key cases which are referenced when valuing a County Court disrepair claim are Calabar Properties Ltd v Stitcher [1984] 1 WLR 287 and Wallace v Manchester City Council [1998] EWCA Civ 1166. They both confirm that the task for the Court is to place the tenant in the position that he would have been in had the breach not occurred. Where the tenant remains in occupation throughout the entire period of disrepair, the diminution in value can include loss of comfort, loss of enjoyment, inconvenience, disappointment, and distress of having to live in disrepair. According to the case of Re Moorjani v Durban Estates [2015] EWCA Civ 1252, the sum is usually lower when the tenant is not in occupation.
The leading case of Wallace discusses three methods of calculating general damages for disrepair claims under the Landlord and Tenant Act 1985 and the Defective Premises Act 1972. They are as follows:
- Method 1: A global assessment of discomfort suffered without reference to the rent paid by the tenant. Quantum reports of previous cases using Kemp & Kemp, Personal Injury Law Practice and Procedure (Sweet and Maxwell) can be used to reach an appropriate estimation of damages for this method.
- Method 2: Notional reduction in rent. An award is calculated by reference to a hypothetical proportion of the rent paid by the tenant.
- Method 3: A combination of method 1 and 2.
The tenant may be entitled to recover certain costs as special damages including personal injury or ill health, the cost of repair work which the tenant completed, the cost to replace the tenant’s damaged property, alternative accommodation. The Court will be considering whether the tenant has taken reasonable steps to mitigate their loss.
A nuisance claim may also be possible. A common example of this is when there has been an infestation of mice. The measure of damages depends on whether there has been physical damage due to the nuisance. In such a case the award will be based on the costs incurred to remediate the damage. Where there is no physical damage, the loss of amenity or discomfort and inconvenience can be compensated by a lump sum award. It is also possible to have a reduction of rent for nuisance cases. In the case of Harwood Properties v Remuinan Brighton County Court 18 October 2014, the Court awarded a 20% reduction in rent.
The assessment and valuation for property disrepair is a complex area of the law. Bringing a claim or counterclaim for disrepair is multi-layered with consideration being given to the statute which applies, the terms of the tenancy agreements, the duration and impact of disrepair and whether the tenant could have mitigated any losses. Depending on your circumstances a property lawyer can assist you with your claim for compensation.
Cases:
Properties Ltd v Stitcher [1984] 1 WLR 287.
Wallace v Manchester City Council [1998] EWCA Civ 1166.
Re Moorjani v Durban Estates [2015] EWCA Civ 1252.
Harwood Properties v Rumanian Brighton County Court 18 October 2014.
Kemp & Kemp, Personal Injury Law Practice and Procedure (Sweet and Maxwell).
