Terminal repairs – tenant’s liability – section 18 cap and breach of covenant to redecorate

Latimer (James Ferguson) and another v (1) Carney (Michael) (2) Edwards (Jacqueline) (3) Robson (Francis) [2006] EWCA Civ 1417 (27 October 2006)

In this case the Court of Appeal took the opportunity to review the effect of the cap on damages for disrepair of premises imposed by s18 of the Landlord and Tenant Act 1927 and the evidence a landlord may rely upon to show diminution in value of the reversion. The Court also held that breach of a decorating covenant should be brought into account when considering the cap to be imposed. The views of the Court of Appeal will be of interest to both lawyers and surveyors undertaking casework in this sector because the Court breaks some new ground.