Published tribunal order
Tenancy Tribunal case 9053784 — Tenancy dispute in Waipukurau, Waipukurau
Decided 20 Nov 2024 · Published 20 Nov 2024 · Application 9053784
Landlord favoured
- Interest
- Unit Titles
Order
- Philip Nigel Williams must pay Body Corporate 394864 $10,215.63 immediately, calculated as follows: DescriptionsApplicantRespondent Levies$4,547.38 Body Corporate debt collection costs$793.50 Legal costs$3,805.64 Legal costs appearance at Tribunal$143.75 Filing Fee$500.00 Interest: to date of previous hearing 21 August 2024 $425.36 Total award$10,215.63 Total payable by Respondent to Applicant $10,215.63
Reasons
- Conall MacFadyen solicitor appeared on behalf of Price Baker Berridge as instructed by the Body Corporate. Philip Williams was called on the numbers provided but the calls were not answered. The absence of a party does not prevent the matter from being heard and determined.
- The Body Corporate has applied for recovery of unpaid levies, interest, costs and the filing fee from the unit owner.
- This matter was adjourned on 21 August 2024 to give the applicant an opportunity to provide clarification on the costs being claimed as the claim included costs in connection with a matter before the District Court.
- Mr MacFadyen confirmed the claim now excludes costs relating to the District Court proceedings for a previous claim.
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 previous hearing date on 21 August. I decline to award further interest up to today as claimed because the matter could have been resolved at the previous hearing.
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, 1 the Tribunal must order that the reasonable costs incurred by the 1 Body Corporate 162791 v Cheah DC Auckland, CIV2014-004-0120, 24 June 2014 and Body Corporate 162791 v Gilbert [2015] NZCA 185. Body Corporate in recovering the levies, objectively assessed, be paid by a defaulting unit owner.
- The law about recovery of legal costs was further clarified in Body Corporate 346799 v Gueirard & Vu [2023] NZDC 19645. The applicant has provided a copy of this judgment with their claim.
- I have considered the timesheets submitted by Price Baker Berridge and I am satisfied the work done by them was reasonably necessary and the amount charged is reasonable when objectively assessed. However, I decline to make any award for costs incurred after the previous hearing as the matter could have been finalised at that date. I have calculated those costs as $979.80 which I have deducted from the $4,785.44 claimed. I award a total of $3,805.64 for legal costs. I have reduced the appearance costs to $143.75 for 30 minutes before the Tribunal.
- I also find that the costs incurred by the Body Corporate in recovery of the debt are reasonable. This includes processing and monitoring payments made, sending reminder notices, preparation of the file for legal, and all incidental communication with Mr Williams.
- 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.