Alliance London, a Canary Wharf estate agency, has apparently lost a court case involving its letting renewal fees to landlords.
Alliance had sought to enforce its standard lettings contract which contained a clause requiring a Dundee Wharf (in Limehouse, London) landlord letting out his flat to tenants to pay annual renewal commission even though the landlord contended that the company had done no work.
On 15th August, a district judge at Clerkenwell & Shoreditch County Court dismissed the estate agent’s claim.
The judge ruled that the company had provided no evidence to prove the contract clause had ever been agreed or that it was fair.
Ordering sanctions against Alliance, represented by its managing director Ben Thomas, the judge ruled that the company had repeatedly breached a court order requiring it to provide evidence to support its claim.
It is understood that an oral application by Mr Thomas to appeal that ruling was also dismissed after he admitted Alliance had committed a “serious and significant” breach of the court’s order.
The court had before it detailed witness evidence highlighting alleged misleading and deceptive sales and marketing practices by Alliance.
This included allegations that its website, emails, and pre-contract discussions with the landlord had omitted to mention that the company intended to charge thousands of pounds when a tenancy is extended or renewed even when the landlord handled the tenants and the company did absolutely no work.
EYE phoned and emailed Alliance for comment but there has been no response.
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