Housing Dispute success

“I felt like a lodger in my own home” – a case we successfully resolved for our client.

Because housing disputes often end in settlement, it is relatively rare for such cases to proceed to trial. Here, you can read about a recent exceptional case of ours, where we helped our client recover possession of her home and her legal costs.

Background

Our client intended to sell her home, but as two family members (who later became the Defendants) were evicted from their rental property, she allowed them to come and live with her in her home. They agreed to stay temporarily, paying reduced rent while sharing the property with our client until it was sold. The parties did not put their agreement in writing, as they would all be living together as a family.

After several months of living together, the relationship became strained. Our client divided her time between staying with a friend, another family member, and her home. Despite sleeping in different places throughout the week, she retained her keys to her home, and all her belongings remained there. It was clear to everyone that the house remained our client’s home.

Our client then asked the Defendants to leave the property so she could sell it as always intended. The Defendants acknowledged this but refused to leave, stating that our client had a ‘moral obligation’ to contribute to their moving costs and demanding £10,000.

Our Instructions

We were initially instructed to advise the client on a draft settlement agreement, in which our client agreed to pay the Defendants £5,000 to facilitate their moving out. Our advice was that she did not have to pay them anything to leave—neither legally nor morally—but the client took the pragmatic view to avoid further strife and conclude the matter quickly. Unfortunately, the Defendants did not engage in this settlement process, and our client had to serve them with an eviction notice.

The Defendants were served with notice to quit because they were lodgers and were given a reasonable time to vacate the property. They refused, forcing our client to issue court proceedings to regain possession.

The Trial

The Defendants left our client’s home mere days before the trial date. By then, both sides had incurred significant legal costs, and the only matter to be decided by the Court was which party could recover its legal fees. The standard position is that the winner of the case recovers their legal costs from the losing party. Even though our client had regained possession of her home, the Court still had to hold a trial to decide who would have won the possession claim.

Key Arguments

Our Client’s Position: The Defendants had always been lodgers under an oral licence, excluded from the Protection from Eviction Act 1977. They had been served a valid notice to vacate and had become trespassers once this notice expired.

Defendants’ Claims: The Defendants argued that they were tenants under an Assured Shorthold Tenancy (AST) and that the notice to quit was invalid. Alternatively, they argued they had a tenancy allowing them to remain in the property indefinitely until they were “back on their feet”. We refuted this second argument as invalid under the law.

Court Ruling

We successfully demonstrated to the Court that our client had only ever allowed the Defendants to stay with her as lodgers. Consequently, the notice to quit was valid, and the Court ruled that our client would have been successful in the possession claim had the Defendants not already vacated.

Due to the Defendants’ poor conduct and proven dishonesty throughout the case, the Judge granted our client her legal costs on the indemnity basis, i.e., at a higher rate than usual. The indemnity basis can apply where the party paying the legal fees has acted unreasonably or dishonestly during litigation.

We obtained a judgment in favour of our client for £42,000 including VAT for her legal costs.

Key Takeaways

Document Agreements: Even when dealing with family members, it may be crucial to document any agreements in writing to prevent disputes from arising.

Legal Advice: Obtaining early legal advice can help clarify your rights and options, particularly when informal agreements are involved or when considering drafting a formal agreement.

Litigation Costs: Litigation can be unpredictable and expensive. Parties should be aware of the potential financial implications of going to trial. Our lawyers will inform you of the possible litigation costs at every stage.

Court’s Discretion on Costs: This case highlights how courts may award costs on an indemnity basis where a party’s conduct is unreasonable or dishonest.

Family Litigation Stress: Disputes involving family members can be especially emotionally taxing. Legal support can provide clarity and help manage the process.

Our Head of Contentious Probate and Estates, Daisy Tester, and her team supported our client through challenging circumstances over a prolonged period. The good news is that our client was able to arrange her property sale and relocation and move forward with her life.

Contact us today by calling 01273 604 123, emailing us at enquire@bbc-law.co.uk, or make an enquiry.