Published tribunal order
Tenancy Tribunal case 9043465 — Unit Titles in Auckland, Auckland
Decided 25 Jul 2023 · Published 25 Jul 2023 · Application 9043465
Mixed / unclear
- Unit Titles
- Remedial Levy
- Ordinary Levy
- Interest
Order
- David Xi Xie and Wenli Qiu must pay Body Corporate 406198 $44,893.25 immediately, calculated as follows: DescriptionsApplicantRespondent Remedial Levy 20 July 2022 – 28 February 2023 $32,588.62 Ordinary Levy 18 December 2022 – 18 April 2023 $6,337.26 Interest 20 July 2022 – 25 July 2023 $2,018.60 Legal costs $3,046.27 Manager's costs $402.50 Filing Fee $500.00 Total award $44,893.25 Total payable by Applicant to Respondent $44,893.25
Reasons
- The hearing was conducted by telephone. Ms MacGregor attended for the applicant. Mr Xie attended for the respondents.
- The body corporate has applied for recovery of unpaid levies, interest, costs and the filing fee from the unit owner. Levies
- 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 (UTA).
- The High Court has also made an order dated 13 April 2021 under case number CIV-2020-404-1776 settling a scheme under s74 UTA allowing the body corporate to raise levies for the cost of certain remedial work to the body corporate buildings.
- 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) UTA. The body corporate has provided records to prove the amount claimed. 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 UTA.
- 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. 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.
- I have deducted $265 plus GST from the costs because I regard the time claimed for reporting to and emailing the body corporate to be excessive. I have also deducted the $50 and $86.64 for office expenses and file storage respectively because I regard those as office overheads that should be included in the lawyer’s hourly rate. Filing Fee
- Because the body corporate has succeeded with the claim, I have reimbursed the filing fee. Section 176(1) UTA and section 102(4) Residential Tenancies Act 1986. Payment
- Mr Xie said that he will need time to pay. Because there has been no agreement to that, I cannot make an instalment order. It will be for the parties to discuss and agree a payment arrangement if possible.