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Late Invoice - Loss of right to be paid?

Late Invoice - Loss of right to be paid?

Postby PeteLukeSilva » Tue Apr 17, 2018 1:07 pm

Hi All

Assume Tenant has obligation to pay Landlord for insurance under a lease.
Landlord issues Tenant invoice for insurance cover taken out three years previously (for six months) long since expired.
Lease is silent.
I am presuming Limitation Act applies and therefore Landlord`s right to be paid is not extinguished (despite the three-year gap).

Would you agree?

Thanks
PLS
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Re: Late Invoice - Loss of right to be paid?

Postby atticus » Tue Apr 17, 2018 1:29 pm

Limitation Act does not apply as claim is not time-barred. The obligation to pay is enforceable.
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Re: Late Invoice - Loss of right to be paid?

Postby PeteLukeSilva » Tue Apr 17, 2018 1:38 pm

Yes, I could have phrased that better.

Thanks!
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Re: Late Invoice - Loss of right to be paid?

Postby theycantdothat » Tue Apr 17, 2018 3:30 pm

Just for the record:

· Limitation does not extinguish a debt, it only prevents it from being enforced by action. If a debt is paid after the expiry of the limitation period there is no right for the debtor to claim back the sum he has paid on the grounds that the creditor could not have sued for it.

· Limitation does not provide a time limit before which a claim can be enforced, but a long stop date before which it must be enforced. Limitation does not override the common law rule that action must be taken within a reasonable time.
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Re: Late Invoice - Loss of right to be paid?

Postby PeteLukeSilva » Wed Apr 18, 2018 2:12 pm

Thanks for that.
Yes, if a debtor, perhaps in ignorance, pays the debt after the 6-year period then more fool him/her. I take your point that such a payment would not give rise to a right to a refund.
I was in a hurry and considered fleetingly whether waiver might apply but disposed of that quite quickly.
It sort of feels wrong to be issued with an invoice so long "after the event" dare I say my MD shouted - "They cant do that"! Um, yes, they can!! (no pun intended ;) )
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Re: Late Invoice - Loss of right to be paid?

Postby atticus » Wed Apr 18, 2018 2:22 pm

on the other hand, your company has had the benefit of the money, and of the insurance cover.

Questions can be validly asked about any interest charge, if one has been made.
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Re: Late Invoice - Loss of right to be paid?

Postby PeteLukeSilva » Wed Apr 18, 2018 3:58 pm

That is a very good point - one I did not think of.

Thanks!

Peter
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Re: Late Invoice - Loss of right to be paid?

Postby dls » Thu Apr 19, 2018 5:06 am

It must also be born in mind that in many leasehold arrangements, the tenants and leaseholders are effectively the same people.
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Re: Late Invoice - Loss of right to be paid?

Postby blig » Sat Apr 21, 2018 6:50 pm

atticus wrote:The obligation to pay is enforceable.


Not necesssarily: for a residential lease it may well not be payable. Forget the Limitation Act, look instead at section 20B of the Landlord and Tenant Act 1985.

For example, If the insurance is to be paid through a service charge and the landlord did not demand the amount within 18 months of incurring the cost, the landlord needed to serve a notice during that 18 month period stating that costs had been incurred and that the tenant would be required to contribute to them by payment of a service charge.

In the example here it is three years since the cost was incurred, so the notice appears to be 18 months late, and the silence of the lease is interpreted in the leaseholder's favour.
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Re: Late Invoice - Loss of right to be paid?

Postby atticus » Sat Apr 21, 2018 7:55 pm

The OP's posts indicate this does not concern a residential property.
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