Summary: We will not investigate Mr B’s complaint about the Council not complying with the terms of a lease agreement for a commercial premises. This is because it is reasonable for Mr B to take the Council to court, which is in the best position to decide the matter.

The complaint

1. The complainant, who I will refer to as Mr B, complains about the Council’s handling of a lease he entered into with the Council as the commercial tenant of a Council property. Mr B says the building is defective and does not meet the building regulations. Mr B says the Council knew this when it offered him the lease. Mr B says the Council has breached the terms of the lease which has resulted in a loss of earnings and he cannot sell his business. Mr B would like the Council to pay him damages for the losses he has suffered.

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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. Mr B complains the Council has not complied with the terms of the lease. Mr B’s complaint is mainly about the condition and structure of the Council owned building.
7. The issues Mr B complains about are legal matters which the courts are in the best position to decide. The role of the Ombudsman is to consider complaints about administrative fault.
8. Only a court can decide legal disputes including whether a party has complied with a lease agreement and if not, the amount of compensation a party should pay.
9. Unlike the Ombudsman, the court can also order a party to pay compensation.
10. So, Mr B may take the Council to court by making a money claim. I find it is reasonable for Mr B to do this, particularly because the fees are relatively modest in relation to the compensation he seeks.

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Final decision

11. We will not investigate Mr B’s complaint because it is reasonable for him to take the Council to court.

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Investigator's decision on behalf of the Ombudsman