Summary: We will not investigate Mr B’s complaint about the Council’s handling of a lease agreement for his business. This is because it was reasonable for Mr B to pursue a claim against the Council at court.

The complaint

1. The complainant, who I will refer to as Mr B, complains about the Council’s handling of a lease agreement he entered into with the Council to run his business from a Council premises. Mr B says the Council evicted his business from the premises without giving him the opportunity to negotiate or extend the lease. Mr B says before then the Council had given him the impression it wanted to lease the premises to his business on a long term basis, which resulted in him investing significantly to make the business a success. Mr B would like the Council to pay him compensation for his financial losses of £80,000, in addition to the stress he has suffered and the damage to his brand.

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The Ombudsman’s role and powers

2. The Local Government Act 1974 sets out our powers but also imposes restrictions on what we can investigate.
3. The Act says we cannot normally investigate a complaint when someone could take the matter to court. However, we may decide to investigate if we consider it would be unreasonable to expect the person to go to court. (Local Government Act 1974, section 26(6)(c), as amended)

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How I considered this complaint

4. I considered information provided by Mr B.
5. I considered the Ombudsman’s Assessment Code.

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My assessment

6. The courts are in the best position to decide complaints about lease agreements. Deciding whether an organisation has complied with a lease agreement involves looking rigorously, and in a structured way at evidence as only the court can to make its findings. In addition, only a court can decide if an organisation should pay damages.
7. We cannot recommend actions or payments that ‘punish’ the organisation and an investigation would not result in us recommending the compensation Mr B seeks. Also, unlike the courts we have no powers to enforce an award of damages.
8. In addition, the Council says the lease has been the subject of legal proceedings and a court order. So, it seems likely the issues Mr B complains about have already been considered by the court. But, even if these specific issues were not considered by the court, I find Mr B could have raised these issues as part of the court proceedings, or put in a separate claim to the court against the Council.

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Final decision

9. We will not investigate Mr B’s complaint because it was reasonable for Mr B to use his legal remedy through the courts.

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Investigator's decision on behalf of the Ombudsman