Ombudsman Services, LEASE and redress options for leaseholders
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1 Ombudsman Services, LEASE and redress options for leaseholders Nicolette Granite and Anthony Essien NLG - 15 June 2017
2 2 This morning A. Redress 1. Redress before and after October The Deployment Project FTT and courts sharing jurisdiction 3. LEASE-NLG Early Neutral Evaluation and Mediation B. Information and guidance for leaseholders 1. LEASE 2. Other sources of information and guidance
3 Redress Before October 2014 What options were available to a leaseholder: Tribunal was meant to be an easy and low cost route for redress but the process can be costly and complex for a lay person to navigate, decisions were also difficult to predict. Court costly, complex, time consuming and reaching a resolution could take some time. Some leaseholders experienced significant problems and having no option of an ADR scheme or free redress was causing detriment. Some issues a leaseholder/freeholder experienced were not suitable for Court or Tribunal but there was no requirement to offer a route of ADR. In 2009 ARMA required its members to belong to a redress scheme and OS:P was its preferred ADR provider. However, there wasn t an industry-wide requirement for redress.
4 Redress After October 2014 The Redress Schemes for Lettings Agency Work and Property Management Work (Requirement to Belong to a Scheme etc) (England) Order 2014 It became a legal requirement for property managers to belong to an approved redress scheme. Three approved schemes. Leaseholders and freeholders dealing with property managers could complain to an independent person on issues such as unfair treatment, avoidable delays, failure to follow procedures, rudeness, poor service. By legally requiring redress, it helped to weed out bad agents and drive up standards within the industry. A quick, independent resolution to property management complaints, which is free for the consumer and a more cost effective way for a business to ensure it meets its legal requirements. Consumers think more highly of a business that handles complaints efficiently. Consumers have more confidence in a company that offers access to an ADR scheme. First and foremost consumers want the problem putting right.
5 The Three Approved Schemes Ombudsman Services: Property ( The Property Ombudsman ( The Property Redress Scheme (
6 The Deployment Project FTT and courts sharing jurisdiction What is the Deployment Project? Pilot to see whether the Tribunal can deal with County Court issues that arise in its cases. Currently confined to salaried judges. Parties must consent 16 months into project. Why in this way? 6 Savings in cost for the parties and for HMCTS. Parties might be able to have their disputes resolved in one place/hearing instead of having to go both to the Tribunal and to the Court. Prevent parties abusing a situation where jurisdiction is split and no-one Tribunal/Court have oversight of a case.
7 7 What cases are suitable? In theory all cases, but the most obvious are: 1. Service charge cases 2. Park Homes cases 3. Enfranchisement cases
8 8 Some deployment examples 1. Eastern Tribunal, a case is pending where there is a counterclaim for disrepair. 2. London, the whole of a service charge claim including an application for an order for specific performance was transferred over, but the parties objected and the minor works issue was returned to the Court. 3. London, a substantial disrepair case with some service charge aspects has been transferred to London Tribunal and is currently being case managed. 4. Eastern Tribunal was considering a section 27A claim for the payability of legal costs as service charges and was able to correct a failure of the parties to arrange for a detailed assessment of costs by doing it themselves.
9 9 What has been learned? Savings in time and costs for the parties and for HMCTS. administrative time estate costs judicial costs more convenient for the parties. Easier to control the progress of a case and to deal with reluctant litigants.
10 10 LEASE-NLG Early Neutral Evaluation and Mediation What is LEASE-NLG Early Neutral Evaluation service? 1. Non-binding evaluation by former FTT judges providing an unbiased expert view of the relative merits of each party's position and on the potential outcome should the case proceed to tribunal. 2. The matter is assessed on a short statement and limited documentary evidence submitted to the evaluator. 3. Online ADR, thus low cost vs courts and tribunals.
11 11 What is LEASE-NLG Mediation service? 1. Independent LEASE mediator helping parties reach a voluntary, mutually agreed resolution. 2. Key principles, (a) the parties, not the mediator, decide outcome; and (b) both parties willing and informed consent to participate. 3. Structured format over 4 hours. 4. Subject to confidentiality
12 14 Drivers for the project? 1. CMA Report (December 2014) recommends cheaper and quicker alternatives to taking claims to the First-tier Tribunal 2. big plans for online tribunals in England and Wales by 2020 (Transforming our Justice System, HMCTS September 2016) 3. Online dispute resolution is already happening eg EBay, Traffic Penalty Tribunal and Money Claim Online.
13 13 Information and guidance for leaseholders LEASE 1. Website, including: a. advice guides b. newsletter c. template documents d. webinars and podcasts e. online tools 2. Free telephone advice (Mon-Fri) 3. Free written advice (incl Webchat) 4. Outreach across England and Wales, including annual leaseholder conference
14 14 Other sources of information and guidance: 1. Landlord information eg Leaseholder Handbooks 2. The media 3. All Party Parliamentary Group and MPs 4. Leaseholder representatives eg FPRA, LKP, HomeOwners Alliance and Leaseholders Association
15 15
16 16 Questions?
17 Visit our website: Find us on LinkedIn: Follow us on
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