Published tribunal order
Tenancy Tribunal case 9041184 — Tenancy dispute in Auckland Central, Auckland
Decided 1 Aug 2023 · Published 1 Aug 2023 · Application 9041184
Landlord favoured
- Costs
- Interest
- Unit Titles
Order
- Oxana BUBNOVA also known as Oxana Mikhailovna BUBNOVA must pay Body Corporate 360485 $42,444.96 immediately, calculated as follows: DescriptionsApplicantRespondent Levies (dated 30/5/22 ,30/8/22,30/11/22,28/2/23 and 30/5/23) $20,011.97 Water and wastewater charges$1,129.33 Costs: Legal Costs before hearing$18,811.63 Costs: Lega costs at hearing$230.00 Filing Fee$850.00 Interest: on utilities$83.92 Total award$41,116.85 Total interest$1,328.11 Total award with interest$42,444.96 Total payable by Respondent to Applicant $42,444.96
Reasons
- Ms Robinson and Mr MacFayden attended for the Applicant. The Respondent did not attend.
- The body corporate has applied for recovery of unpaid levies, interest, costs and the filing fee from the unit owner.
Does the Unit Owner owe the levies claimed?
- A unit owner must pay all body corporate levies and outgoings payable for the unit. See sections 80(1)(f) and 121(1) Unit Titles Act 2010.
- The body corporate has determined the levies payable and unit owner's share has been calculated according to their utility interest.
- The body corporate has fixed the due date for the levies to be paid, and the unit owner has not paid the levies by that date. See section 124(1) Unit Titles Act 2010. The body corporate has provided records to prove the amount claimed.
- The Tribunal accepts that levies stated in page 2 paragraph 7 of the Applicant’s submissions are owing by the Respondent.
Is the Unit owner liable for interest?
- If a unit owner fails to pay levies by the due date, interest accrues on the unpaid balance. A body corporate may charge interest up to 10% per annum. See section 128 Unit Titles Act 2010.
- The body corporate has resolved to charge interest at 10 % per annum on unpaid levies. The Body Corporate has proved the amount of interest owing from the due date to the hearing date.
- The Applicant has submitted that the amount of interest owed was $1677.12. However, the Tribunal has calculated the interest owed on the levies from the date that they fell due and the amount owing is $1328.11. That amount is awarded.
- Pursuant to section 125(2) UTA the Body Corporate is entitled to recover any metered charges for water and waste water as if they were a levy. I am satisfied that the water and waste water amounts are owed by the Respondent.
Is the Unit owner liable for costs?
- Pursuant to section 124 UTA, and as resolved at meetings of the Body Corporate, the Body Corporate is entitled to recover any reasonable costs incurred by it in collecting unpaid levies as a debt due by the owner to the Body Corporate. In accordance with the judgments (of the District Court and Court of Appeal respectively) in Body Corporate 162791 v Cheah DC Auckland, CIV2014-004- 0120, 24 June 2014 and Body Corporate 162791 v Gilbert [2015] NZCA 185, the Tribunal must order that the reasonable costs incurred by the Body Corporate in recovering the levies, objectively assessed, be paid by a defaulting unit owner. I am satisfied that the costs ordered above are reasonable because: a) The costs relate to both enforcement of a previous order from the Tribunal and the costs associated with collecting this levy, both of which are costs of collection of a levy. b) The recovery is in accordance with its debt recovery procedure as passed in the AGM dated 28 November 2019. c) The Body Corporate has agreed to the payment of the fees with Price Baker Berridge as per terms and conditions of engagement dated 22 November 2021. d) Price Baker Berridge has invoiced the Body Corporate for the amount sought.
- Because the body corporate has succeeded with the claim, I have reimbursed the filing fee. Section 176(1) Unit Titles Act 2010 and section 102(4) Residential Tenancies Act 1986.