Daejan investments v Benson and others

S.20 Dispensation

The Supreme Court decision has now been handed down in this much anticipated case. By a narrow majority, the Supreme Court granted dispensation thus widening a Landlord’s ability to obtain an order for dispensation.
In delivering the decision the court concluded that the correct legal test on an application for dispensation is:

‘Would the flat owners suffer any relevant prejudice, and if so, what relevant prejudice, as a result of the Landlord’s failure to comply with the requirements.’

This practical approach has taken some by surprise but is welcome news for Landlord’s who may now be granted dispensation in spite of procedural non compliance.


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