Published tribunal order
Tenancy Tribunal case 9055684 — Tenancy dispute in Auckland Central, Auckland
Decided 4 Dec 2024 · Published 4 Dec 2024 · Application 9055684
Landlord favoured
- Interest
- Unit Titles
Order
- New Zealand Tourism Holding Group Limited must pay Body Corporate 361791 $30,421.37 immediately, calculated as follows: DescriptionsApplicantRespondent Levies$18,719.99 Body Corporate debt collection costs$948.00 Legal costs$5,401.84 Legal costs appearance at Tribunal$143.75 Filing Fee$500.00 Interest$4,707.79 Total award$30,421.37 Total payable by Respondent to Applicant $30,421.37
Reasons
- Briar Dobson, solicitor, appeared on behalf of Price Baker Berridge as instructed by the Body Corporate.
- The respondent was called on the number provided but the call was not answered. The applicant provided a number for a Mr Young who has been in contact recently and advised that the owners are overseas receiving medical treatment. I called Mr Young, and he asked that the matter be extended but he ended the call when I declined the request. The respondent has been fairly notified of the hearing and some of the outstanding levies go back to 2019.
- 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. Ms Dobson advised that a payment of $50.00 was made by the respondent on 2 December and this has been taken into account for the purposes of this hearing.
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 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.
- The law about recovery of legal costs was further clarified in Body Corporate 346799 v Gueirard v Vu [2023] NZDC 19645.
- 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 $143.75 for 30 minutes before the Tribunal.
- Although scant on detail, I also find that the costs incurred by the Body Corporate in recovery of the debt are reasonable. I heard evidence from Ms Dobson that this includes processing and monitoring payments made, sending reminder notices, preparation of the file for legal, and all incidental communication with the respondent.
- Because the Body Corporate has succeeded with the claim, the respondent must reimburse the filing fee. Section 176(1) Unit Titles Act 2010 and section 102(4) Residential Tenancies Act 1986.