HT-2019-CDF-000012 - [2025] EWHC 1315 (TCC)

This is the largest single head of (quantified) claim, amounting to £317,000 in total for the two flats. Paragraph 50 of the Schedule of Loss defines “Total Capital Losses” to mean “the ‘2016 Losses’, and the 2019 Losses and the ‘2024 Losses’ together.” (Mr Wilson acknowledges that each of those three losses should read Capital Losses.) To understand what this means, one must refer to a series of further definitions.

“23.

‘2016 Capital Losses’ means the difference between the 2016 Defective Market Value the 2016 Clear Market Value.

24.

‘2016 Clear Market Value’ means the estimated market value of the Flats on the 2016 Loss Date on the assumption the Flats did not have the 2016 Defects (or other defects) and on the basis the Flats were suitable security for secured lending.

25.

‘2016 Defects’ means defects identified by [surveyor] and/or referred to in Parkman’s information packs as provided to prospective sellers/purchasers from [date] 2016.

26.

‘2016 Defective Market Value’ means the net market value of the Flats on the 2016 Loss Date with the 2016 Defects on the assumption that the Flats were not suitable security for secured lending and after deduction of exceptional sale costs including the extra costs incurred at auction sales.

27.

‘2016 loss date’ means the date from which the Managing Agents of Celestia, William Parkman and Daughters Limited started to issue information packs referring to the 2016 Defects - [March] 2016.

28.

‘2019 Capital Losses’ means losses additional to the 2016 Losses, being the difference between the 2019 Clear Market Value and the 2019 Defective Market Value.

29.

‘2019 Clear Market Value’ means the assumed value of the Flats on the 2019 Loss Date on the assumption that they were not suitable security for secured lending and suffered from the 2016 Defects only.

30.

‘2019 Defects’ means all fire defects referred to in Enforcement Notices issued by SWFRS in 2019.

31.

‘2019 Defective Market Value’ means the net market value of the Flats on the 2019 Loss Date with the 2016 Defects and the 2019 Defects on the assumption that they were not suitable security for secured lending and after deduction of exceptional sale costs including the extra costs incurred at auction sales.

32.

‘2019 loss date’ means the Date on which compartmentation and other fire defects were identified at Celestia.

33.

‘2024 Capital Losses’ means losses additional to the 2016 Losses and the 2019 Losses, being the difference between the 2024 Clear Market Value and the 2024 Defective Market Value.

34.

‘2024 Clear Market Value’ means the assumed value of the Flats on the 2024 Loss Date on the assumption that they were not suitable security for secured lending and suffered from the 2016 Defects and 2019 Defects only.

35.

‘2024 Defects’ means the defects in the soil pipe system as referred to in paragraph xx of the AAAPOC.

36.

‘2024 Defective Market Value’ means the net market value of the Flats on the 2024 Loss Date with the 2016 Defects, the 2019 Defects, and the 2024 Defects on the assumption that they were not suitable security for secured lending and after deduction of exceptional sale costs including the extra costs incurred at auction sales.

37.

‘2024 loss date’ means [date] being the date of intrusive investigations into the soil stacks in Celestia revealing systemic defects as referred to in paragraph xx of the AAAPOC.”

Mr Wilson submitted that this head of claim falls within paragraph 25.2.1 of the POC. I do not agree. Whereas there are claims that leaseholders can properly advance under paragraph 25.2.1, this is not one of them. In my judgment, the Capital Losses are spurious. Mr and Mrs Wilson are seeking to claim damages representing alleged diminutions in value of the flats at specific past dates on the basis of defects identified at those dates, despite the fact that they retained the flats thereafter. The flats were not sold on these dates or, indeed, at all. The alleged losses were not sustained. This head of claim will be struck out.