Dacorum Borough Council (19 017 993)

Category : Other Categories > Commercial and contracts

Decision : Closed after initial enquiries

Decision date : 29 May 2020

The Ombudsman's final decision:

Summary: The Ombudsman will not investigate Ms X’s complaint that the Council acted wrongly regarding repairs at a commercial property she leases from it. The complaint is outside the Ombudsman’s jurisdiction. Ms X has an alternative remedy at court regarding the lease and if she wants to claim damages due to the Council’s negligence.

The complaint

  1. Ms X complains the Council acted negligently in handling her lease and repairs at her business premises. She says she had to cease operating the business due to damage at the property. The Council has offered a new lease which she says is not acceptable. It is demanding she pays rent for the time the business was closed. Ms X says the Council has caused the collapse of her business, has damaged her health, and she cannot afford to pay the rent arrears.

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The Ombudsman’s role and powers

  1. 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

  1. I have considered Ms X’s information and comments and the Council’s reply to her complaint dated 26 June 2019.

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What I found

  1. Ms X says she has had a commercial tenancy with the Council for many years. In 2018 Ms X reported to the council a problem of damp in the basement of the property and the need for electrical work. The Council says in March 2019 Ms X provided a report on the damp. It offered Ms X storage between August 2018 and March 2019 at a nearby property and it did the damp work.
  2. The Council has rejected Ms X’s claim for compensation which it says includes £4000 for loss of trade, £5000 for storage and £5000 for rewiring. The Council says according to the terms of the lease Ms X is responsible for repairs and insurance at the property. The Council says it did more than it is obliged to do. It believes Ms X could have continued to use her business because the damp problem was in the basement.

Analysis

  1. I will not investigate this complaint for the following reasons:
  2. The complaint is outside the Ombudsman’s jurisdiction because Ms X as the Council’s tenant had or has a legal remedy (see paragraph 2 above). Ms X can go to court if she believes the Council has breached the lease or acted negligently. There are legal remedies where there is a dispute about the renewal of a lease or rent arrears.
  3. I consider it reasonable for Ms X to use her legal remedies. This is a specialist area of law. A court has the power to determine a dispute and award compensation or damages.

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Final decision

  1. The Ombudsman will not investigate Ms X’s complaint that the Council acted wrongly regarding repairs at a commercial property she leases from it. The complaint is outside the Ombudsman’s jurisdiction. Ms X has an alternative remedy at court regarding the lease and if she wants to claim damages due to the Council’s negligence.

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Investigator's decision on behalf of the Ombudsman

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