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Court of Appeal gives guidance on Unfair Terms Consumer Credit Regulations 1999

The Court of Appeal has handed down judgment in Jones & Anor v Roundlistic Ltd [2018] EWCA CIV 2284, an appeal from the Upper Tribunal (Land Chamber) which has ramifications for lessees and consumers generally, and the Air B’n’B industry in particular.

David E. Grant and Elizabeth Grace represented the appellant lessees of a lower maisonette who contended that a term in a lease which prevented sub-letting to anyone not in the lessee’s family was unfair under the 1999 Regulations. The Upper Tribunal concluded that the clause was not unfair for three reasons despite creating a significant imbalance between the freeholder and leaseholder.

The Court of Appeal, by a majority, upheld the appellants’ argument that the term in question was not a mandatory or statutory provision for the purposes of reg 4(2) of the UTCCR 1999 even though the lease had been extended under the Leasehold Reform, Housing and Urban Development Act 1993.

The Court unanimously allowed the appeal against the Upper Tribunal’s conclusion that the significant imbalance had not been caused by the term in question.

Permission to appeal has been sought in relation to the good faith issue on which the Court, by a majority, declined to interfere with the Upper Tribunal’s finding that the term was not contrary to the requirement of good faith under the UTCCR 1999.

The full judgment is available to see here.

David and Elizabeth acted for Mr Jones and Ms Seymour via the Bar Pro Bono Unit.

News 29 Oct, 2018

Authors

David E Grant

Call: 1999

Elizabeth Grace

Call: 2017

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