Published tribunal order
Tenancy Tribunal case 9061824 — Tenancy dispute in Penrose, Auckland
Decided 19 May 2025 · Published 19 May 2025 · Application 9061824
Landlord favoured
- Unit Titles
Order
- Stephen Andrew Siegel must pay Body Corporate 180161 $6,517.81 immediately, calculated as follows: Descriptions Ordinary Levies$2,931.99 Interest$41.52 Legal fees$2,175.80 Collection costs$1,368.50 Total award$6,517.81 Total payable by Respondent to Applicant $6,517.81
Reasons
- The hearing was conducted by teleconference.
- Ella Hoogerbrug of Cowan Law attended for the body corporate.
- Stephen Siegel attended for the unit owner.
- 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.
- Mr Siegel stated he first received a copy of the fee structure just three months ago: He does not dispute the amount of levies owed, he has just been unable to pay them.
- Mr Siegel also stated that he has had difficulty accessing the online portal to get a summary of what is owed, and that he has received a large number of emails, but he has found these overwhelming. Mr Siegel stated he has asked for an arrangement to pay the levies monthly, but this could not be arranged. These are factors that have contributed to Mr Siegel falling behind with payment of the levies.
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.
- Because the body corporate has succeeded with the claim I have reimbursed the filing fee. This is included in the legal fees portion of the award. Section 176(1) Unit Titles Act 2010 and section 102(4) Residential Tenancies Act 1986.