A case about “stepping in.”


Wild Duck Limited v Smith

This case was a dispute involving outstanding works at a holiday home site in the Cotswolds called “Waters Edge.”

The original developer of the site had gone into Insolvency leaving some work on the site incomplete. The case centred around who was left responsible for the works under the terms of the lease. The terms set out that the management company would be liable to complete the outstanding works. However, there was also provision for the lessors to “step in” and carry out the obligations and charge the cost to the Management Company.

Wild Duck owned 6 chalets and claimed that the site owners, by starting some of the works themselves, had wrongfully prevented the residents’ Management Company from completing them sooner.

The court decided that the site owners had been contractually entitled to commence the works themselves, and had not prevented the company from doing so. The subsequent appeal against the decision was dismissed.

A perfect illustration of when communication between all parties is essential – even in the most difficult or unpredictable circumstances.

Laura Severn - About Author

Laura Severn - About Author

Laura has worked within the property management industry for quite a few years now and loves seeing it develop and grow. Over the years she has developed and managed arrears collection teams for service charge and ground rent arrears, and advised on many property management issues and service charge dispute cases. Laura's email address is laura.severn@lmp-law.com.

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