[2023] UKUT 135 (LC)

The Burton Waters Estate is a mixed residential and commercial estate in Lincoln which includes 361 houses and flats let on long leases. The residential leases make provision for each leaseholder to have one share in a leaseholders’ company, but that company was dissolved in 2014.

The three respondent companies are landlords of different parts of the Estate.

In 2016 a Burton Waters Residents’ Group (the Residents’ Group) was established by leaseholders and appears to have adopted a non-confrontational approach to the landlords. In February 2019 the officers and management committee of the Residents’ Group resigned, apparently in response to criticism of their handling of a dispute over service charges, but a new committee was elected on 15 July 2019.

While the Residents’ Group was dormant an alternative association emerged. The Burton Waters Independent Tenants Association (the Association) held its inaugural general meeting on 24 August 2019. It appointed officers and a management committee, including the appellant Mr Michael Connell as Secretary. It adopted a constitution, one of whose objects was to seek formal recognition under the 1985 Act; the constitution provided that the members would indemnify the officers against all liabilities incurred by them acting in good faith in the name of the Association and within their authority.

The Residents’ Group had never previously sought recognition by the landlords, but immediately after its resurrection the landlords notified its secretary by a document dated 18 July 2019 that they recognised it for the purposes of the 1985 Act.

Despite having been recognised by the landlords, the Residents’ Group also applied to the FTT for recognition, but no certificate was issued; the FTT pointed out, correctly, that none was required as the Group had already been notified of recognition by the landlords. In its application to the FTT the Residents’ Group stated that it had 264 members, representing 68% of the residential leaseholders.