Part 2Leasehold reform

Chapter 1Right to manage

Claim to acquire right

F187ACosts: general

(1)

An RTM company and a member of an RTM company are not liable for any costs incurred by any other person in consequence of a claim notice given by the company in relation to any premises, except as set out in this section.

(2)

A lease, transfer, contract or other arrangement is accordingly of no effect to the extent it would provide to the contrary.

(3)

An RTM company is liable to a member of the company in respect of costs incurred by the member to the extent agreed between the company and the member.

(4)

A member of an RTM company—

(a)

is liable to the company in respect of costs incurred by the company to the extent agreed between the member and the company;

(b)

is liable to another member of the company in respect of costs incurred by that other member to the extent agreed between the two members.

(5)

An RTM company or a member of an RTM company are liable for costs incurred by another person in connection with proceedings before a court or tribunal if—

(a)

the court or tribunal has power under another enactment to order that they pay those costs, and

(b)

the court or tribunal makes such an order.

(6)

An RTM company and a member of an RTM company are liable for costs incurred by another person in the circumstances referred to in section 87B.

(7)

For the purposes of this section, “member”, in relation to an RTM company, means each person who is or has been a member of the RTM company.

(8)

See also sections 20CA and 20J of the Landlord and Tenant Act 1985, which prevent costs in connection with a claim under this Chapter being recovered by way of a variable service charge (within the meaning of section 18 of that Act).