Victory for residents of unsafe flats after five-year legal battle in ruling that could pave the way for leaseholders to sue over defective apartments

• Residents of flats identified as unsafe after Grenfell received pay outs
• The FCDS was forced to pay the 25 flat owners an estimated total of £5million 
• The owners initially tried to sue the developer and insurer but both went bust 

The owners of thousands of flats identified as unsafe after the Grenfell disaster may be able to sue for compensation in the wake of a landmark legal victory.

Residents of a block in Manchester won their battle five years after fire chiefs ordered them out amid safety fears following the London blaze that killed 72.

Concerns at New Lawrence House in the city’s Hulme area included a steel structure not treated with flame retardant, missing balconies, a lack of fire breaks and faulty cladding.

The owners of thousands of flats identified as unsafe after the Grenfell disaster may be able to sue for compensation in the wake of a landmark legal victory

Owners who paid around £120,000 for each flat in the five-storey block tried to sue the developer but the firm went bankrupt. 

They then sued its insurer.

The action was successful but when the insurer also went under residents turned to the Government’s Financial Services Compensation Scheme for help with legal bills. 

The FSCS said they did not qualify, so they took the case to the High Court.

Now a judge has found in their favour, in a ruling that could encourage tens of thousands of other leaseholders considering legal action over defective apartments.

The FSCS was ordered to pay the estimated £5million total legal bill around 25 owners faced. 

They were originally awarded £3million to cover the cost of their flats after suing East West Insurance, which Zurich Insurance sold their policies on to but which went bust.

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