Ajith Prasad

It’s time to mediate

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It’s time to mediate

The Ministry of Justice (MoJ) has recently confirmed that mediation will soon be compulsory for civil claims valued up to £10,000 (small claims track), with changes coming into effect during 2024. This will see mediation become more common in most small claims proceedings.

Compulsory mediation
Compulsory mediation will apply only to specified money claims, but it will eventually expand to all small claims i.e. claims up to £10,000.

In terms of how this will look in practice, a Claimant will bring proceedings in the usual way, however when a defence is filed and the case allocated to the small claims track, the parties will be advised by the court that they must now mediate.

The parties will complete a directions questionnaire (a document used by the Court to determine how to allocate the case) and the claim will move to the Small Claims Mediation Service where mediation appointments will be offered within 28 days.

Crucially, the mediation will be free, and the parties will have a separate 1-hour long telephone conversation with a mediator. If a settlement is agreed, a legally binding formal agreement will be recorded with the court. If agreement is not reached, the dispute will be heard by a judge in the usual way. The judge will be able to impose sanctions on parties that did not comply with mediation. The sanctions could include automatically ruling in one party’s favour or ordering that one party pay part or all the other sides legal costs.

Pros and Cons
There are a number of advantages of mediation including claims being settled more quickly and at less cost to the parties when compared to litigation. Also, compulsory mediation may remove the stigma of being the first party to propose it, which might encourage more parties to engage in mediation.

In terms of downsides, forcing parties to mediate where it is clear the parties will not reach an agreement may lead to time and resources being wasted.

While compulsory mediation will only apply to cases up to £10,000 for now, it is likely that the MoJ will increase the scope to higher value claims up to £25,000 (fast-track) and possibly those over £25,000 (multi-track).

While compulsory mediation may not be to everyone’s liking, it is ultimately a positive step by the MoJ and should help parties resolve disputes more effectively and alleviate pressure in the court system.

If you are considering filing or defending a civil claim and would like a free initial consultation with a member of the Litigation team simply click on the “Speak to Our Experts” button on this page, call us on 01244 356 789 or email info@cullimoredutton.co.uk

Please note: This is not legal advice; it is intended to provide information of general interest about current legal issues.

Ajith Prasad

Your role as a Landlord – A quick guide

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Your role as a Landlord – A quick guide

It is important as a landlord to know your rights and responsibilities. Generally, when managing residential property, your role involves maintenance and ensuring any repair work is completed, as the property cannot have any hazards or breach any health and safety laws. Along with this, there are deposit protections you must also follow.

This guide looks at the role of a residential landlord and the key obligations you will have, including your financial responsibilities and health and safety obligations.

Financial responsibilities
This section covers:

  1. Tax
  2. Deposits

1. Tax
As a landlord, you are required to pay tax on your earnings, including national insurance, if you run your rental properties as a business. Income tax must also be paid on your income, the money brought in through rent, but your day-to-day running expenses can be deducted before the tax bracket is decided.

2. Deposits
When a tenancy begins, you are more than likely going to collect a deposit. This money must then be placed in a tenancy deposit protection (TDP) scheme. This is to protect your tenants and ensure the money is returned if their tenancy agreement terms are met at the end of their tenancy. However, the TDP schemes also protect landlords as it means the deposit money is there if the agreement is not met and repairs need to be made, or missed rent payments need to be covered.

In England and Wales, the following schemes are available to you:

Health and Safety
This section covers:

  1. Health hazards
  2. Gas equipment
  3. Carbon monoxide detectors
  4. Fire Safety

1. Health hazards
Landlords owe a duty of care to their tenants, and this includes ensuring there are no health hazards to your tenants. The most serious hazards that you must deal with as soon as you are made aware of them include:

  • Mould on the wall or ceilings
  • Pest or vermin infestations
  • Dangerous or broken boiler
  • Leaking roof
  • Exposed wiring
  • Poor security caused by broken locks or doors

When you are made aware of the above issues, you must act fast to repair the property back to a safe living standard.

2. Gas equipment
As a landlord, it is your duty to ensure all gas appliances are safe and in working order. This is a legal responsibility and can be broken down into three steps, as outlined below.

  • Gas safety checks must be carried out annually by a Gas Safe registered engineer. Once this is done, you will receive an outline of all checks completed in your Landlord Gas Safety Record (LGSR).
  • As well as being kept for your own records, the LGSR should be made available to tenants within 28 days of the gas safety check. At the start of a new tenancy, the most recent LGSR should be provided.
  • Maintenance of all gas pipework, chimneys, appliances and flues is also your responsibility. These must all be kept in safe working order and typically require an annual check unless your Gas Safe engineer suggests otherwise.

When starting a new tenancy, it is also recommended to show the new tenants where to turn off the gas in the case of a gas emergency.

3. Carbon monoxide detectors
From October 2022 you must provide a carbon monoxide (CO) detector in every room where there are gas appliances, other than those used for cooking. These detectors must carry a British or European approval mark and should be checked the day a new tenancy begins and annually, particularly to ensure the batteries are still working.

4. Fire Safety
Similar to CO detectors, you must also ensure there are working fire alarms throughout the property. Fire safety regulations can change depending on which local authority area the property is in, so you should always check you are meeting the local regulations.

Generally, there must be a smoke alarm fitted on each storey of the property, and these must be checked regularly, along with always being checked at the start of a new tenancy. If the property you are providing is furnished, all furniture should be fire-safe, and there should be fire escape routes available.

If the property is a multiple occupation property (HMO), fire extinguishers also must be provided by the landlord.

If you are a landlord who would like a free initial consultation with a member of the Proerty Litigation team simple click on the “Speak to Our Experts” button on this page, call us on 01244 356 789 or email info@cullimoredutton.co.uk

Please note: This is not legal advice; it is intended to provide information of general interest about current legal issues.