The example of profligate wastefulness was reported in the London Evening Standard.
In spite of the thousands wasted the leaseholder at Holcroft Court owed nothing.
Roger Allen, 47, of Fitzrovia had previously led fellow leaseholders to win a tribunal ruling against the council and got almost a quarter cut from a £3.4 million major works bill.
Mr Allen paid his £20,000 share of the bill but the council, which owns the freehold of the site and runs it through City West Homes chased him for the £40, threatening court action for two years.
In March Mr Allen took the matter to the Central London County Court for clarification. It was told he owed £39.70 plus £500 in legal fees.
He was refunded £7.91.
Mr Holcroft, who chairs the Holcroft Court residents association said there were around 80 similar cases faced by neighbours.
A Freedom of Information Act response showed the council had spent £126,000 in legal and professional fees against the residents of Holcroft Court.
Mr Allen accused the council of “wasting over £120,000 of taxpayers’ money defending a case it could never win”.
CityWest Homes said the money was incurred chasing £355,000 in arrears.
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