Published tribunal order
Tenancy Tribunal case 9050144 — Tenancy dispute in Parnell, Auckland
Decided 17 Jun 2024 · Published 17 Jun 2024 · Application 9050144
Landlord favoured
- Costs
- Unit Titles
Order
- Jingy Mai must pay Body Corporate 180455 $70,882.48 immediately, calculated as follows: DescriptionsApplicantRespondent Operating Levies$4,146.15 Interest on Operating Levies$326.22 Building Levies$29,250.00 Interest on Building Levies$1,570.68 Debt Recovery Costs & Expenses$1,681.50 Further Operating Levies$2,915.52 Interest on Operating Levies$36.14 Further Building Levies$29,250.00 Interest on Building Levies$961.64 Boutique's Costs$97.75 Costs of Hearing$646.88 Total award$70,882.48 Total payable by Respondent to Applicant $70,882.48
Reasons
- Both parties attended the hearing which was held by teleconference. An interpreter of the Mandarin language also attended the hearing.
- 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 Unit Owner does not dispute the debt and wants to establish a payment plan with the Body Corporate. The Body Corporate was not in a position to accept a payment plan and wanted to obtain an appropriate order for enforcement if required.
- The fact remains that the Unit Owner has defaulted in payment of those levies that fell due at the material time. Unlike businesses, there is no obligation on the Body Corporate to exercise “understanding or empathy” to the Unit Owner or to forebear with a payment plan or late payment of levies.
- Likewise, the Tribunal has no discretion to order a payment plan when it has not been agreed by the Body Corporate.
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.
- I am satisfied that the costs ordered above are reasonable.
- As 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.