Phillips v Francis – Appeal scheduled

We are relieved to report that a date has now been set for the appeal in this case. The ruling of the Chancellor of the High Court last year in the Phillips v Francis case created widespread concern throughout the residential block management industry.

Prior to this case, consultation for major works had been carried out on a project by project basis. The decision in Phillips v Francis turned this on its head and created a situation where the costs for all works (both proactive and reactive) were put into one pot.

The repercussions of this decision were enormous and over the last few months it has left industry experts scratching their heads as they struggled to find a way to practically apply the decision.

The appeal will be heard on the 14th and 15th May 2014 and we trust that a pragmatic and sensible decision will be reached. Until (and if) the decision is overturned, we are still bound by the case as it currently stands.

We will update you on the decision later in the year however in the meantime, this case is a timely reminder as to how important it is to keep abreast of regularly changing industry legislation. If your block is contemplating any major works this summer, make sure you receive up to date advice from your managing agent or risk the wrath of any vexatious lessees in your building!

Regards,

Johanne