Published tribunal order
Tenancy Tribunal case 9047704 — Tenancy dispute in Auckland Central, Auckland
Decided 21 Mar 2024 · Published 21 Mar 2024 · Application 9047704
Landlord favoured
- Costs
- Interest
- Unit Titles
Order
- Judy-Lea Engel must pay Body Corporate 490569 $18,430.16 immediately, calculated as follows: DescriptionsApplicantRespondent Overdue Levies$9,077.31 Interest to 21 March 2024$675.52 Legal costs on collection of outstanding levies (this application) $2,477.71 Costs of enforcement proceedings following order on Application 9037284 $4,549.62 Counsel's hearing attendance fee$230.00 Filing Fee$500.00 Strata debt collection charges$920.00 Total award$18,430.16 Total payable by Respondent to Applicant $18,430.16
Reasons
- Mr MacFayden attended the hearing as counsel for the body corporate. I conducted the hearing by phone. My call to the unit owner went unanswered.
- 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.
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.
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 in Body Corporate 162791 v Cheah DC Auckland, CIV2014-004-0120, 24 June 2014 and Body Corporate 162791 v Gilbert [2015] NZCA 185, and, more recently, Body Corporate No: 346799 v Gueirard [2023] NZDC 19645, 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.
- The costs awarded include the costs incurred for the enforcement of the Tribunal’s previous order on Application 9037284, also for unpaid levies, following judgment entered by the High Court on 9 August 2023 – see Body Corporate No. 490569 v Engel CIV-2023-404-1795.
- 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.