Daejan Investments Ltd v Benson [2013] UKSC 14

What it decided

The landlord failed to follow the section 20 consultation process properly for major works and applied for dispensation. The Supreme Court held that:

• The purpose of consultation is to protect leaseholders from paying for inappropriate works or paying more than they should.
• When deciding dispensation, the tribunal should focus on whether the leaseholders suffered relevant prejudice because of the failure.
• Leaseholders must show some credible case of prejudice; the landlord then has to rebut it.
• Dispensation can be granted on terms, such as the landlord paying the leaseholders’ reasonable costs or reducing the amount recoverable.

Why it matters

A slip in consultation is not always fatal, but applying for dispensation costs time and money. Following the process step by step is far cheaper.

Read the judgment on the Supreme Court website. This page is our own summary.