Recent Decision On A Contested Remediation Contribution Order Against A Developer

First Tier Tribunal (“FTT”) has handed down its decision, on 19 January 2024, on the first contested Remediation Contribution Order (“RCO”) in Triathlon Homes LLP -v- (1) Stratford Village Development Partnership (2) Get Living plc (3) East Village Management Limited [2024].

The RCO was first introduced under section 124 of the Building Safety Act 2022 (“BSA”) and has had only one other case taken to the FTT which was uncontested. Triathlon Homes LLP -v- (1) Stratford Village Development Partnership (2) Get Living plc (3) East Village Management Limited [2024] provides the first insight on how the FTT interprets the BSA in a contested matter.

To provide a brief background; the case concerned five buildings in the East Village, formally known as the Athletes Village for the London Olympic Games. The Village was owned and developed by Stratford Village Development Partnership (“SVDP”), SVDP was owned by Get Living Plc (“GL”) following London 2012. To date, Triathlon Homes LLP (“TH”) is the long leaseholder of parts of each of the five buildings and was established to provide affordable housing. TH and GL have subsequently leased the buildings to private individuals. At present day, East Village Management Limited (“EVML”) undertook inspections of the five buildings and reported various building safety defects which required remedial work.

Following EVML’s inspection, TH made an application for the RCO against two parties, SVDP and GL, for the share of costs incurred, estimated to be around £16,000,000 along with other future costs, to remedy these defects identified by EVML.

Outcome

The FTT ordered five RCOs against each of the respondents, SVDP and GL, deciding in favour of TH.

The decision provided insights into the RCO and FTT’s interpretation on the application of section 124 BSA in future cases. The key points being the statute allows the RCO to consider costs incurred prior to 28 June 2022, each application will be decided on its owns facts and the BSA creates a hierarchy of liability putting the landlord, who is responsible of the maintenance of the building, at the top.

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