Manjinder Kaur Atwal
Costs incurred before a council’s decision on housing suitability can be recovered, the Senior Courts Costs Office (SCCO) has confirmed, marking a significant victory for Duncan Lewis Solicitors’ housing team.
This decision provides crucial clarity for tenants challenging unsuitable housing conditions and for housing law practitioners ensuring that legal costs incurred during the initial stages of challenging housing suitability decisions are recognised and recoverable.
The case involved NS, a tenant in temporary accommodation provided by Westminster City Council (WCC), which was plagued by severe housing disrepair, including black mould, and deemed unsuitable for her needs. Despite her request for a review and representations made on her behalf, WCC concluded that the property was suitable.
Following a successful appeal in January 2023, WCC agreed to pay the “costs of and incidental to the appeal.” However, when a bill of costs was served in January 2024, the council disputed items, including pre-decision costs and fees for an expert medical report. In September 2024, Costs Officer Pigott provisionally assessed the dispute, reducing the bill but allowing both categories of costs on a reduced basis.
Dissatisfied with this outcome, WCC appealed, arguing that neither pre-decision costs nor the medical report should fall within the agreed costs order. The appeal was heard on 18 December 2024 by Costs Judge Nagalingam, with WCC represented by Counsel Joshua Munro and NS by Vikram Sachdeva KC and Daniel Kozelko of 39 Essex Chambers.
WCC’s appeal sought to exclude costs incurred before their decision letter, arguing that such costs fell outside the terms of the consent order. They also challenged the inclusion of the expert report, asserting it was unnecessary. During the hearing, WCC relied heavily on an unreported case, Khan v Waltham LBC, where the costs order only referred to the “costs of the appeal.” Judge Nagalingam questioned this reliance, noting that the consent order in NS’s case included the broader phrase “costs of and incidental to the appeal.” The Judge pointed out that incidental costs are inherently tied to the appeal and cannot be excluded arbitrarily.
The Judge found that NS had been seeking suitable accommodation from the very beginning and had exhausted all other options before pursuing legal action. To deny costs incurred during this preparatory phase would ignore the reality of such cases, where pre-decision work is essential to building a strong challenge.
On the issue of the expert report, the Judge concluded that it was reasonable to obtain medical evidence given the nature of NS’s case, which included medical grounds and procedural failures by WCC. The fact that the report was not ultimately served was a direct consequence of the settlement and the test for recoverability is whether the costs were reasonable at the time they were incurred.
Judge Nagalingam dismissed WCC’s appeal, upholding Costs Officer Pigott’s decision and awarding costs to NS.
This decision reaffirms the position that pre-decision costs in homelessness appeals are recoverable. It underscores the importance of pre-litigation work in these cases and ensures that local authorities cannot escape liability for costs resulting from their poor and unlawful decisions. The ruling has nationwide significance, safeguarding the financial viability of homelessness legal aid providers and ensuring access to justice for vulnerable individuals.
By attempting to narrow the scope of recoverable costs, WCC sought to change the law in a way that could have harmed claimants and their legal representatives. The SCCO’s judgment stands as a critical reminder that councils must carefully consider the broader implications of their decisions. This ground-breaking ruling strengthens the legal framework supporting those most in need.
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Duncan Lewis’ Housing Team
Duncan Lewis’ Housing team, ranked by The Legal 500 directory as a Top Tier practice for its services, offers both publicly funded (legal aid) and privately funded legal services from 14 key offices nationwide. Duncan Lewis Housing Solicitors can guide clients in any matter or issues arising with local housing authorities, housing applications, tenants, landlords, ownership and repairs. With a niche expertise in unlawful eviction, disrepair and homelessness matters the team offers representation in all proceedings including reviews, appeals and judicial review proceedings.
Manjinder Kaur Atwal is recognised by the Chambers & Partners legal directory as a UK-wide notable practitioner, offering strength across a wide range of social housing matters, including interim relief and homelessness applications. She heads a Housing Team ranked Tier 1 across the South East by The Legal 500 for its “excellent knowledge of the law” and “extensive experience”. The department is recognised as a market-leader in all areas of social housing and property litigation including disrepair, unlawful evictions, homelessness, possession disputes, and complex judicial review matters.
Contact Manjinder via email at ManjinderA@duncanlewis.com, or by telephone at 02031141269.
Retha Khan is a solicitor in the housing department based at the Head Office in the City of London with extensive experience in housing law and has assisted numerous clients with homelessness, disrepair, and possession claims.
Daljit Singh Shina is a solicitor in the Housing department at Duncan Lewis Solicitors, based in the City of London office. As a key member of the Housing Team, Daljit handles a broad range of publicly and privately funded housing matters, including possession claims, landlord and tenant disputes, eviction applications, suspensions of warrants for possession, housing disrepair and unlawful evictions.
Duncan Lewis Solicitors
Duncan Lewis Solicitors crowned LexisNexis Law Firm of the Year 2024, continues to set benchmarks in the legal industry. Celebrated for its successes at the Modern Law Awards 2024 and recognised by The Times, the firm stands out for its innovative practices and commitment to legal excellence. Specialising in housing law among other areas, Duncan Lewis tailors its award-winning services to meet the evolving needs of its diverse client base.