Summary: We will not investigate this complaint about a contractual matter between the Council and a private landlord. It is reasonable for Mr X to take court action.

The complaint

1. Mr X complains the Council has not reimbursed him under its deposit guarantee scheme for loss of rent and damage to his property. He also complains the Council did not rehouse his tenants, so he had to take court action to get his house back.

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The Ombudsman’s role and powers

2. The law 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

3. I considered information provided by Mr X and the Council.
4. I considered the Ombudsman’s Assessment Code.

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My assessment

5. Mr X is a private landlord. He took tenants under a legal agreement with the Council. He says the Council has not reimbursed him in line with its deposit guarantee certificate. He says the certificate sets out two month’s rent totalling £4200 and £1800 for damage to the property, which the Council has not paid.
6. The Council says the deposit guarantee certificate sets the rent arrears at £2,400. It also says it does not agree the damage caused merited the Council paying £1800.
7. This is a contractual matter, and the courts are better placed to consider it. Some points are disputed and complex legally, and as this relates to Mr X’s business activity as a landlord, he can reasonably expect to take court action and incur the cost and effort involved. Mr X could also ask for his costs if his court action succeeded. We will not investigate this complaint.

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Final decision

8. We will not investigate Mr X’s complaint. It is reasonable to expect Mr X to take court action about the contractual dispute.

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Investigator's decision on behalf of the Ombudsman