Landlord and tenant

Forcelux Ltd v Binnie (costs) [2009] EWCA Civ 1077; 21 October 2009

The tenant had fallen into arrears with payment of ground rent and charges and the landlord obtained a default judgment against him. The landlord obtained an order for possession which a district judge set aside on the exercise of his discretion under CPR r39.3 and granted relief from forfeiture on terms as to payment of outstanding monies. In the Court of Appeal the possession order was set aside. The landlord claimed to be entitled to its costs of the entirety of the proceedings on the basis that the tenant had covenanted in the lease to pay ‘all costs charges and expenses (including legal costs …) which may be incurred by the lessor in or in contemplation … of any steps or proceedings under Section 146 of the Landlord and Tenant Act 1925’.