Published tribunal order
Tenancy Tribunal case 9053944 — Tenancy dispute in Three Kings, Auckland
Decided 30 Oct 2024 · Published 30 Oct 2024 · Application 9053944
Landlord favoured
- Unit Titles
Order
- Parviz Ansari must pay Body Corporate 208022 $10,157.35 immediately, calculated as follows: DescriptionsApplicantRespondent Levies $723.63 Body Corporate debt collection costs $1,138.50 Legal costs $7,164.24 Legal costs appearance at Tribunal $155.25 Filing fee $500.00 Interest $475.73 Total award $10,157.35 Total payable by Respondent to Applicant $10,157.35
Reasons
- Both parties attended the hearing. The applicant was represented by Ms Monique McGregor of Price Baker Berridge, Barristers and Solicitors.
- The Body Corporate has applied for recovery of unpaid levies, interest, costs and the filing fee from the unit owner. The applicant filed this application on 21 May 2024 and at that time, the levies payable were $4,700.84. Since then, further levies have been raised totalling $8,292.29 and Mr Ansari has made payments totalling $7,568.66. This leaves an outstanding balance of $723.63 for levies being sought today.
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, 1 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. 1 Body Corporate 162791 v Cheah DC Auckland, CIV2014-004-0120, 24 June 2014 and Body Corporate 162791 v Gilbert [2015] NZCA 185.
- 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.
- I have considered the time sheets 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. I have reduced the appearance costs to $155.25 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, and all incidental communication with Mr Ansari.
- Because the Body Corporate has succeeded with the claim, Mr Ansari must reimburse the filing fee. Section 176(1) Unit Titles Act 2010 and section 102(4) Residential Tenancies Act 1986.