Published tribunal order
Tenancy Tribunal case 9060484 — Tenancy dispute in Onehunga, Auckland
Decided 17 Apr 2025 · Published 17 Apr 2025 · Application 9060484
Landlord favoured
- Costs
- Interest
- Unit Titles
Order
- Emily Grace Irvine must pay Body Corporate 313609 $86,088.37 immediately, calculated as follows: DescriptionsApplicantRespondent Outstanding levies – sections 121 and 125 UTA $76,084.82 Interest at 10%$7,386.55 Collection costs – section 124 UTA$2,117.00 Filing Fee$500.00 Total award$86,088.37 Total payable by Respondent to Applicant $86,088.37
Reasons
- Both parties attended the hearing. Mr Craig represented the body corporate.
- The body corporate has applied for recovery of unpaid levies, interest, costs, and the filing fee from the unit owner.
- Centurion Management Services Limited (Centurion) is the administrator of the body corporate by order of the High Court 1 .
Does the Unit Owner owe the levies claimed?
- A unit owner must pay all body corporate levies and outgoings payable for the unit - sections 80(1)(f) and 121(1) Unit Titles Act 2010 (UTA).
- 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 dates for the levies to be paid, and the unit owner has not paid the levies by those dates - section 124(1) UTA. The body corporate has provided records to prove the amounts claimed.
- The levies charged for this unit are higher due to ground rents being payable. Metered utility charges have also been included
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 - section 128 UTA.
- 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 dates 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.
- Because the body corporate has succeeded with the claim, I have reimbursed the filing fee - section 176(1) UTA and section 102(4) Residential Tenancies Act 1986. 1 Bracken Trustees No. 1 Limited v Body Corporate 313609 CIV 2020-404-1700
- Ms Irvine did not challenge the amounts claimed by the body corporate. She confirmed that this and another unit owned by her have been placed on the market for sale.
- Mr Craig acknowledged the efforts Ms Irvine had made to pay her outstanding levies. The order is sought to formalise the body corporate’s position as part of Centurion’s role as administrator.