What Is The Dilapidations Pre-Action Protocol?
What Is The Dilapidations Pre-Action Protocol?
The Dilapidations Pre-Action Protocol addresses claims for damages against tenants for dilapidations at the end of their tenancy. It establishes guidelines for both landlords and tenants to follow before initiating legal proceedings, ensuring a fair process and efficient resolution of disputes.
The protocol aims to encourage early and full exchange of information, facilitate settlement efforts, and streamline court proceedings if litigation becomes necessary.
Key Takeaways:
- The Dilapidations Pre-Action Protocol applies to commercial property disputes in England and Wales.
- It specifically relates to claims for dilapidations against tenants at the end of their tenancy.
- The protocol establishes guidelines for conduct, information exchange, and the quality of schedules and quantified demands.
- Alternative Dispute Resolution (ADR), such as mediation, is encouraged before resorting to litigation.
- Compliance with the protocol is important as it can impact court orders regarding costs.
The Steps Involved in the Dilapidations Pre-Action Protocol
The Dilapidations Pre-Action Protocol outlines specific steps that both landlords and tenants should follow when dealing with terminal dilapidations claims. By adhering to these steps, parties can ensure compliance with legal requirements and navigate the process effectively.
Schedule of Dilapidations
The first step in the protocol is for the landlord to provide the tenant with a schedule of dilapidations. This document details the breaches of the lease and outlines the necessary remedial works. It should be sent within a reasonable time, typically within 56 days after the termination of the tenancy.
In some cases, the landlord may also send a schedule before the termination, but they must confirm that the situation remains the same at termination or send a revised schedule if necessary. The schedule should be endorsed by the landlord or their surveyor to affirm its accuracy and reasonableness.
Response and Negotiation
Once the tenant receives the schedule of dilapidations, they have a duty to respond within a reasonable time. The response should address each item in the schedule, acknowledging any breaches they accept and disputing those they contest. If the parties cannot reach an agreement through direct negotiation, they may consider alternative dispute resolution (ADR) methods, such as mediation, to resolve their differences.
Compliance with the Protocol
Complying with the dilapidations pre-action protocol is crucial for both landlords and tenants. The court takes into account the extent to which the parties have adhered to the protocol when making decisions regarding costs. Failing to follow the protocol may result in adverse consequences or unnecessary delays in the litigation process.
Overall, understanding and complying with the dilapidations pre-action protocol is essential for landlords and tenants involved in terminal dilapidations claims. By following the prescribed steps, both parties can ensure a fair and efficient resolution of their dispute.
Alternative Dispute Resolution and Compliance with the Dilapidations Pre-Action Protocol
The Dilapidations Pre-Action Protocol emphasizes the importance of alternative dispute resolution (ADR) as a means to resolve disputes before resorting to litigation. Navigating the protocol involves both the landlord and the tenant considering whether ADR procedures, such as mediation, would be more suitable in their case. It is crucial for the parties to attempt to agree on the form of ADR to adopt, as the court may require evidence of this consideration.
Complying with the dilapidations pre-action protocol is a significant aspect of the dispute resolution process. The court takes into account the extent to which the parties have followed the protocol when making decisions about costs. Therefore, it is in the best interest of all parties involved to ensure compliance and adhere to the prescribed guidelines and procedures.
By complying with the dilapidations pre-action protocol, the parties demonstrate their commitment to resolving the dispute through a fair and efficient process. It also showcases their willingness to engage in meaningful discussions and explore alternative means of reaching a resolution. Ultimately, the objective of the protocol is to facilitate settlement before litigation and promote the efficient management of proceedings if litigation cannot be avoided.
FAQ
What is the Dilapidations Pre-Action Protocol?
The Dilapidations Pre-Action Protocol is a set of guidelines and procedures that apply to commercial property in England and Wales. It specifically relates to claims for damages for dilapidations against tenants at the termination of a tenancy, commonly known as terminal dilapidations claims. The protocol sets out the conduct that the court expects both the landlord and the tenant to follow before commencing legal proceedings.
It provides a reasonable process and timetable for exchanging information relevant to the dispute, as well as standards for the content and quality of schedules and quantified demands. The objective of the protocol is to encourage the exchange of early and full information about the dispute, facilitate settlement before litigation, and support efficient management of proceedings if litigation cannot be avoided.
What are the steps involved in the Dilapidations Pre-Action Protocol?
The Dilapidations Pre-Action Protocol consists of several steps that both the landlord and the tenant should follow. First, the landlord should provide the tenant with a schedule of dilapidations, which sets out the breaches of the lease and the works required to remedy those breaches. The schedule should be sent within a reasonable time, typically within 56 days after the termination of the tenancy.
The landlord may also send a schedule before termination of the tenancy, but if so, they should confirm the situation remains the same at termination or send a further schedule within a reasonable time. The schedule should be endorsed by the landlord or their surveyor to confirm its accuracy and reasonableness.
How does Alternative Dispute Resolution (ADR) relate to the Dilapidations Pre-Action Protocol?
The Dilapidations Pre-Action Protocol encourages the use of alternative dispute resolution (ADR) to resolve disputes before resorting to litigation. Both the landlord and the tenant should consider whether ADR procedures, such as mediation, would be more suitable than litigation and attempt to agree on the form to adopt.
The court may require evidence that the parties considered alternative means of resolving the dispute. Compliance with the protocol is important, as the court takes into account the extent to which the parties complied with the protocol when making orders about costs.