Executor sued

Gingerly

As an executor, my late parent's estate is incurring charges mainly on a property. Without notice the property management co is suing for non payment of charges. No advanced notice was given by them just a letter received from a solicitor, which was received late and incorrectly titled giving less than 7 days actual notice. The debt has been paid (out of order in my view as am not sure if it is the priority debt) but no one else is suing for debt monies on the estate.

No court papers have been received as yet but solicitors refuse to stop court action unless all court costs are paid.

What action should be taken? Court/solicitor's costs in excess of £500, am on a low income.

Yorkshireman99

The costs are due from the estate and not you personally unless you have acted wrongly that does not seem to be the case.

Jenniefour

Is this by any chance an over 55's retirement property? If so, you need to read what's in the lease about this because some of them have clauses specifically about service charges after the death of the owner until the property is sold. That might explain why they feel free to go ahead and sue. The need to make a profit seems to have completely extinguished their capacity to be compassionate and reasonable.

Ridiculous and predatory, but probably legally enforceable. The OFT have already investigated so called "exit fees" on these properties, whether they have legislated to prevent it I don't know - but I'm sure the companies involved put up a good fight or are doing so. Check whether there is a an exit fee as well.

Addition: if this is the case post again on the House Buying and Selling board, quoting the specific clauses and see whether anyone over there knows how to put a spoke in the wheels.

Gingerly

Thank you for your replies.

The estate owes the money to the management company who were fully aware of the situation. Until the property was sold and the prime charges paid off there was insufficient money to pay other creditors. The estate's accounts are overdrawn since it has incurred further costs of maintaining the property till sold (one could argue that such service charges are part of this).

The executor rightly is awaiting the sale before paying off the other creditors.

What is concerning is that the Management Company instructed solicitors without advising the executor that they would take action. By doing so they have increased the debts of the estate (thus affecting both the other creditors and beneficiaries), the solicitor appears to be suggesting it is the freeholder who have instructed them but I suspect it is the management company, the original debt has been paid no papers have been served and the solicitors won't withdraw. The executor never received the letter until after the deadline imposed by the solicitor and ironically after an offer was put to the managing agent.

If only the managing agent had contacted the executor first saying action would follow all could have been avoided.

What should the executor's response be? They are on a low income and ironically it is not their debt.

Yorkshireman99

Gingerly wrote: »

Thank you for your replies.

The estate owes the money to the management company who were fully aware of the situation. Until the property was sold and the prime charges paid off there was insufficient money to pay other creditors. The estate's accounts are overdrawn since it has incurred further costs of maintaining the property till sold (one could argue that such service charges are part of this).

The executor rightly is awaiting the sale before paying off the other creditors.

What is concerning is that the Management Company instructed solicitors without advising the executor that they would take action. By doing so they have increased the debts of the estate (thus affecting both the other creditors and beneficiaries), the solicitor appears to be suggesting it is the freeholder who have instructed them but I suspect it is the management company, the original debt has been paid no papers have been served and the solicitors won't withdraw. The executor never received the letter until after the deadline imposed by the solicitor and ironically after an offer was put to the managing agent.

If only the managing agent had contacted the executor first saying action would follow all could have been avoided.

What should the executor's response be? They are on a low income and ironically it is not their debt.

I would attend the court hearing and put your case as executor. The courts are not not keen on claimants who don't exhaust other remedies first. You should also remind the solicitor of his duty to make sure that action is only a very last resort.

Keep_pedalling

The only person who can award costs against the estate is a judge and that is not going to happen in these circumstances.

Write back to them telling them that there are currently no liquid assets within the estate to pay the ground rent, and that you anticipate that as executor you will be able to settle all outstanding ground rents once the property sale is completed.

Tell them that their demand for payment to prevent legal action is both upsetting and unjustified and that the estate has no intention of paying such spurious charges.

Get proof of posting and keep a copy for your records. If you know who the freeholder is send them a copy as well.

Keep_pedalling

In the unlikely event that this comes to court it would be the small claims court and provided that you keep records of all correspondence and have estate accounts that show you could not meet ground rents until the property was sold you should be fine.

getmore4less

I bet those are not court costs but the solicitors costs.

there is a laid out process the creditor has to follow.

See which steps they missed out.

https://www.justice.gov.uk/courts/procedure-rules/civil/pdf/protocols/pre-action-protocol-for-debt-claims.pdf

Yorkshireman99

getmore4less wrote: »

I bet those are not court costs but the solicitors costs.

there is a laid out process the creditor has to follow.

See which steps they missed out.

https://www.justice.gov.uk/courts/procedure-rules/civil/pdf/protocols/pre-action-protocol-for-debt-claims.pdf

Would making a formal complaint to the solicitor's senior partner be worthwhile as well?

unholyangel

Are you saying they only gave you 7 days to respond? What do you mean it wasn't titled correct? What was the amount due on the property fees (not including costs)?

Pre-action protocol dictates 14 days should be given in "simple matters" and up to 3 months should be allowed for more complex issues.

If pre-action protocol is not followed, the courts can (at their discretion) either not award costs or award costs against that party (even if they had won the claim itself). If the claimed amount was less than £10,000, its likely it would have been dealt with on the small claims track - and in small claims each party is responsible for paying their own legal costs (so they wouldnt be awarded solicitors costs even had you went to court and been ordered to pay their filing fee).

getmore4less

Might be the solicitors are the same cowboys the parking companies use.

Managing agent are in the scam loop if there is a parking control company at the site higher chance there is a connection.

That's a hint to name them or research those involved in parking scams.