Stockwell v Taylor
Letton Lodge is a semi-detached house, comprising three flats, in Alnmouth, Northumberland.
Flats 2 and 3 were owned by one family,
operated as a single residence, and sharing a common entrance.
Flat 1, along with the basement, was owned by another family and had a separate entrance.
The only internal common area is the meter cupboard, and access to it.
The Letton Lodge Management Company Limited owns and manages the freehold of Letton Lodge (excluding the management of the garden);
each of the three Leaseholders holds one share and each was then a Director.
A number of inconsistencies in the terms of the leases render them unworkable without considerable goodwill.
A converted house overlooking the sea; two completely independent units; two friendly and neighbourly families; a dormant freehold company; no bank account to worry about; the leases in a file somewhere; shared expenses balanced annually over a friendly glass of wine; what could be simpler? Who cared that the Taylors had a majority shareholding in the freehold company, bore two thirds of the costs, and, if ever required, had two votes (which have never been exercised)? It really wasn't an issue.
Life was enjoyable, the goodwill was considerable.
Then Mrs. Stockwell inherited Flat 1, and life changed:
| Mrs. Stockwell agrees to act as a Director of Letton Lodge Management Company Limited
, with effect from April 26, 1999 [at the invitation of "the Taylors"; taking the total number of Directors back to four; two for each family unit; Mrs. Stockwell strongly opposed a return to two Directors per flat once she inherited Flat 1] |
|---|
| Letter to Adam Douglas (executors)
enclosing financial details of Company expenditure, dated January 25, 2001 [Full financial details were provided to the executors on a regular and frequent basis; in some cases these were, of necessity, complex] |
| Letter from Mark Gilbert Morse, dated July 12, 2002 [Prior to Mrs. Stockwell's formal ownership of Flat 1; she evidently couldn't wait to get started] |
| Transfer of Flat 1 to Mrs. Stockwell, dated August 21, 2002 |
| Proposed Bank Resolutions [and anything else that Mrs. Stockwell could attempt to include in the resolutions, right up to the last minute; note that three banks were approached before one accepted] |
| Stockwell Schedules Preliminary to LVT Application, dated March 27, 2003 [Ten sheets, believed to have been produced for Mrs. Stockwell by City Solicitors and Counsel; as a Director of Letton Lodge Management Company, Mrs. Stockwell was able to prevent use of a comparable Solicitor by the company in its "defence"] |
| Letter from LVT advising that the Bank Account is not something over which the Tribunal has authority, undated |
| LVT Hearing, Stockwell v Letton Lodge Management Company Limited, dated March
8, 2004 [Mrs. Stockwell's (revised) application comprised 345 A4 sheets; her initial application was rejected as being too verbose. Mrs. Stockwell was supported by Mr Wake, chairman of the tribunal, in opposing two directors per flat; was this really a matter for the LVT? Mr. Wake felt that Mrs. Stockwell's unfounded allegation that she had received no financial information was an important matter. Despite the earlier letter from the LVT, Mr. Wake, felt that the Bank Account was an important matter and worthy of consideration - was he right to overturn this earlier LVT advice; was this a matter for the LVT?] |
| Status report from Mr. Cawthorn marking completion of his role as
manager, dated September 6, 2005 [Produced as a Witness statement at the request of Mrs. Stockwell; did Mr. Cawthorn really expect full unquestioning co-operation in the circumstances?] |
| LVT Hearing, Stockwell v Letton Lodge Management Company Limited, dated September
25, 2005 [Sorry, Frank, I dropped you in it a bit there!; Mrs. Stockwell's application ran to 176 A4 sheets; the LVT found that Mr. Cawthorn had "done his best"] |
| LVT Hearing, Taylor v Cawthorn, dated January 11, 2006 |
| Status report from Mr. Boaden
marking the first six months in his role as manager, dated June 2, 2006 [Mr. Boaden had been selected by the LVT based in part on his "determination to exercise his responsibilities robustly"] |
| LVT Hearing, Taylor v Boaden, date March 28, 2007 |
| Status report from Mr Boaden marking
completion of his role as manager, dated May 31, 2007 ["Manager and Receiver for Letton Lodge Management Company Ltd"? Did he understand anything?] |
Those who knew Vicki and/or me may be surprised by some of the
allegations made by Mrs. Stockwell and wonder at the unquestioning acceptance of those allegations by those whose role is to pass
judgement on others; those who didn't know us must surely be relieved not to have me as a neighbour.
The vast majority of material used here is already in the public domain.
Personal comments on Leasehold Valuation Tribunals, based on this case, can be found at
www.Leasehold-Valuation-Tribunals.org.uk.
JT