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The Upper Tribunal (Lands Chamber) has dismissed a landlord’s appeal against a decision of the First-tier Tribunal (Property Chamber) relating to insurance premiums charged to tenants under the terms of their leases. It held that the insurance premiums had not been reasonably incurred in accordance with s19(1) of the Landlord and Tenant Act 1985. Costs charged to a tenant through the service charge under certain residential leases should be reasonably incurred in accordance with s19(1) of the 1985 Act. In the case of COS Services Ltd v Nicholson [2017] UKUT 382, the court held that in considering whether insurance premiums have been reasonably incurred, a landlord is required to explain the process by which the particular policy and premium have been selected, with reference to the steps taken to assess the current market. Although landlords are not expected to show that their insurance premiums are the lowest in the market, tenants may place before the Tribunal such quotations as they have been able to obtain, if those policies are genuinely comparable.Landlords are free to obtain a block insurance policy should they wish to do so. However, where the insurance premium is higher than it would have been under an alternative policy, landlords should be prepared to demonstrate that the insurance policy provides the tenant a sufficient advantage and the extra cost is therefore justified.  Landlords should carefully consider both the provisions of the lease and their statutory obligations when dealing with residential service charges. If in doubt, they should seek the advice of a solicitor.

There’s been a lot in the news today about race and statistics. The Government has launched a website with the results of its race disparity audit. As employment lawyers, the Employment Tribunal statistics are obviously of particular interest to us – so what story do they tell?  In 2016 / 2017 there were 2,240 race discrimination claims issued in the Employment Tribunal. How does this compare to other types of discrimination? There are fewer claims than for age (7,500) and disability (4,000) and a lot fewer than sex (including equal pay and pregnancy – 20,000), but more than religion (400) and sexual orientation (200).  Race discrimination claims have dropped significantly since 2013, but this has little to do with improvements in equal opportunities. Fees were introduced to the Employment Tribunals in 2013 and there was a significant decrease in claims across the board. A recent Supreme Court decision abolished the fees, but that has not had time to be reflected in the available statistics.  However, we can expect the number of discrimination claims to increase this year, and the average number of race discrimination claims before the introduction of fees was 5,000 per year.   Do race claims normally succeed in the Employment Tribunal? No. Only 3% of issued claims go all the way to a final hearing and win. But an additional 36% of claims are settled somewhere before hearing – so that probably counts as a “win” for the Claimant. However, that still leaves a majority of claims that either fail at Tribunal, or get dropped somewhere along the way. This is not unique to race claims, the statistics are broadly similar to other types of discrimination claims. The only two that tend to succeed more often are disability (4% win, 42% settle) and pregnancy (6% win, 47% settle).How much are race claims worth? So few cases actually get to the stage of an award that the annual statistics can be unreliable and thrown out by a single large award. Looking at an average from the last 10 years is more helpful, and this shows that race claims tend to be the most costly of all types of discrimination, with an average award of £26,900, compared to £21,900 for sex and £15,500 for age.Source: https://www.gov.uk/government/collections/tribunals-statistics

In what may be a landmark case, foster carer Sarah Anderson fights for foster carers to receive “worker status” in an attempt to secure workers rights and protection. It will be interesting to see what approach the court takes, in an area of law which is already complex and the subject of much dispute.

…is how this case is being reported, but there was in fact a series of lewd remarks.  Remember that age is a protected characteristic too, so think twice before you make any jokes about it in your colleagues’ birthday cards!