Not All Plain Sailing
from Business Matters Newsletter (Dec 2001)
Case Law
The case, Sykes v Harry and Another, which eventually reached
the Court of Appeal (CA) arose out of a tragic accident. In February
1994 Mr Sykes (who was a tenant in rented property) was found unconscious
suffering from carbon monoxide poisoning the gas build up was due to a
defective fire. Mrs Sykes then issued proceedings against the
landlord. At the original trial the landlord conceded that if the
fire had been serviced properly the disaster would not have occurred.
Judge decides. The trial judge decided that in spite of
the landlord's concession, he had no obligation to keep the fire in proper
condition. And as long as he did not have actual knowledge that
there was something wrong with the fire, then he was not obliged to repair
it. So, no liability on the landlord in this case and a big relief
for landlords throughout the country.
Lengthy Appeal
You'll know that the legal process can take years. This case is
certainly a good example. Earlier this year, the CA published its
decision. It is not good news for landlords.
Right law. The CA kicked the first judge's decision into
touch. It said that all Mrs Sykes had to do was show that the fire
was defective. If she could do this then her claim fell within the
relevant Acts.
Important now. Why this is so important now is because the
CA has extended the coverage of he law. Where a claim is made, all
the claimant has to do is show that the landlord has not taken as much
care as is reasonable in all the circumstances. This includes making sure
the premises are reasonably safe from personal injury. The CA said
that the fact the gas fire was not maintained over a significant period of
time and as the tenant was not having it serviced, the landlord was in
breach of his duty under the relevant legislation.
Relevant legislation. If your solicitor is not aware of
this case and you talk to him about it, there are two Acts involved - the
Landlord & Tenant Act 1985 (section 11) and the Defective Premises Act
1972 (section 4).
But what's it all Mean?
This legal stuff is all well and good but what does it mean if you're a
landlord. To start with, although this decision related to private
property, it's quite likely that the principle will be extended to
commercial premises too. Suppose your company lets a factory with
plant and equipment that becomes defective and causes an injury?
This decision means that you may well be liable.
Tip 1. Never assume that the tenant will make good
any repairs. As it's your responsibility to ensure the property is
safe, carry out a thorough check before the tenant moves in. Review
the situation regularly.
Tip 2. Have a procedure for the tenant to report any
problems. Note them and carry out the necessary repair work within
the set period.
Tip 3. If you let via agents, don't assume that they'll
take all the blame for you. See what protective measures they have
in place.
Tip 4. Check your insurance cover and review it from time
to time.
Warning. Don't try to get the tenant to sign away his
rights via some kind of waiver form - it won't be enforceable in law.
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