What are the responsibilities that the parties contract out of regarding statutory obligations that pertain to the repair and maintenance of dwelling houses

The case of Fishbourne Developments Ltd v Stephens [2020] EWCA Civ

Summary

The case of Fishbourne Developments Ltd v Stephens [2020] EWCA Civ 1704 is about a dispute between a lease and, in particular, the responsibilities that the parties contract out of regarding statutory obligations that pertain to the repair and maintenance of dwelling houses. Central amongst these issues was the issue of whether the landlord, Fishbourne Developments Ltd, had, in fact, exonerated its obligations under the lease and whether rent was correctly repayable by the tenant, Mr. Stephens, in the face of breaches attributable to the landlord.

Facts

Fishbourne Developments Ltd (Fishbourne) was a landlord of a commercial property leased to Mr Stephens. The lease had covenants for repair and maintenance in respect of both parties. Mr. Stephens claimed that the tenant had not affected essential repairs or done maintenance of the house to a great extent, as a result of which it greatly depreciated. He raised a defence of set-off, premised on the point that breaches of covenants found in leases forcing one to repair property can justify the improvement of the same property on which the other commits to making the repair.

Fishbourne on his part tried to get back the rent that was due from Mr. Stephens and had a counter claim that he also breached the lease by giving him reason to not pay rent. It was first dealt with by the County Court, and one of the fundamental questions then was on whether Fishbourne has breached the repair covenants and whether Mr. Stephen's lease was justified in law.

Issues

There were several problem areas associated with the case:

Whether Fishbourne Developments Ltd had in fact been in breach of some or any of its obligations under the Lease in failing to properly undertake repairs and maintenance of the premises. Whether Mr Stephens was, therefore, justified in refusing to pay rent as a consequence of a breach by the landlord. The correct approach to the construction of the terms of the Lease relating to repair and maintenance requirements. First Instance

In the County Court, Mr. Stephens argued that there was some dilapidation there and that non-repair on the part of the landlord in its upkeep breached the lease. He argued that the disrepair was to that extent so gross that it affects his use and the enjoyment of the property to a considerable degree, allowing him to withhold rent.

The court said this was ipsissima because several facts were held in favor of Mr. Stephens. The fact was ascertained by the court, that is the county court, that it was apparent that Fishbourne had genuinely omitted to fix necessary repairs and maintenance as prescribed by the lease. The court further found out the lessee's lawful right to retain the rent amount as a counterclaim to its landlord's above breach about the reputedly dictatable claims of the repairs prescriptions. The court, therefore, also ruled against the claim of the un-furnished rent payment of Fishbourne.

Decision on Appeal

Thereafter the Fishbourne moved the decision to the Court Of Appeal against such order. This was argument that the order was not only such as was wrong in law but also such as was wrong in fact. On his argument, the decision of the County Court was wrong as a matter of construction of the words in the lease, findings should not have been made on the assumption that the tenant was consequently entitled to withhold rental.

The Court of Appeal considered the case against the real terms of the lease, where the repairing covenants of the landlord and the right to withhold rent by the tenant are stipulated. In consideration of the Court of Appeal, the Court upheld the prior findings of the County Court in finding fault on the part of Fishbourne. The Court put great emphasis on the landlord's non-repair as a supportive ground for Mr Stephens' withholding of rent.

Warning, the court of appeal sounded, however, in the manner that such disputes are treated. The issue of the responsibility of the tenant to the owner that they communicate in good faith and following due legal process, and in procedures in the case of their hanging on to their summer lease because of default by the landlord in carrying out his or her part.

Comments

Since everything in finding in Fishbourne Developments Ltd v Stephens, one can learn about the relationship between landlords and tenants who are eager concerning repair and maintenance obligations, really, a number of these summarizations are as follows:

1. Repairs and maintenance responsibilities on the part of the landlord: A landlord is to provide in writing for repair and maintenance responsibilities under a lease agreement. If the landlord fails to do so, by law, the tenant has a legal right to withhold the rent through legal remedies.

2. Tenant's Rights and Responsibilities: The tenants have the right to withhold the rental amounts under the circumstances of breaching landlords, and in this regard, it is recommended that the contractual action be delivered with proper legal means, with careful strides so that the future legal bindings or disputes are averted.

3. Clear Lease Terms: The case brings out the fact that there is a requirement for clear and unambiguous provisions/terms of the lease agreement as it relates to the responsibility and obligation to repair and maintain the leased property. Landlords and tenants should ensure that their obligations for repair and maintenance should be very clear and property recorded in the agreement of lease so that no dispute arises out of such clauses/terms.

4. Proper Legal Procedures to be followed: The emphasis on the legal procedures for proper remedies by the Court of Appeal calls for advice to a tenant in such a situation to properly follow the procedures in all the landlords' breaches.

5. Precedent of the Dispute: This case will now act as a precedent to others in the matter in future arising disputes that arise between a landlord and a tenant over repair and rent nonpayment. It has reinstated the position that a landlord needs to execute his obligations for repair, and tenants are entitled to withhold their rent if such obligations are breached, as long as he acts within the legal framework.

In conclusion, Fishbourne Developments Ltd v Stephens is one of the leading cases seeking clarification of the schemes made right and obligations between the landlord and the tenant in matters of repair and maintenance. This judgment reincarnates the reminder needed by the industry of the very importance of clarity in lease terms and the proper legal procedures to keep such disputes on fair accountability terms between landlords and tenants.

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