Published tribunal order
Tenancy Tribunal case 9048724 — Tenancy dispute in Lake Tekapo, Lake Tekapo
Decided 23 Feb 2024 · Published 23 Feb 2024 · Application 9048724
Landlord favoured
- Costs
- Interest
- Unit Titles
Order
- Wenbo Yang must pay Body Corporate 354996 $19,299.67 immediately, calculated as follows: DescriptionsApplicantRespondent Outstanding levies$10,093.39 Interest at 10% $1,157.39 Legal costs$6,956.64 Legal costs - appearance fee$304.75 Filing Fee$500.00 Charge for levy collection$287.50 Total award$19,299.67 Total payable by Respondent to Applicant $19,299.67
Reasons
- Ms MacGregor, representing the Body Corporate, attended the hearing. The respondent unit owner 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.
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 (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.
- The law concerning the recovery of legal costs was further clarified in Body Corporate 346799 v Gueirard & Vu [2023] NZDC 19645.
- I am satisfied that the costs ordered above are recoverable in line with these decisions.
- A further cost charged by the Body Corporate for the recovery of the debt upon handover to its solicitors is reasonable and is proved.
- 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.