What was Tenancy Tribunal case 9029981 about?

The tribunal order states: [The party] must pay Body Corporate 346799

How much money was awarded in case 9029981?

Body Corporate Secretary Charges: $1,090.20 awarded to landlord; Legal Costs: $17,870.19 awarded to landlord

What type of tenancy dispute was case 9029981?

The primary dispute was Unit Titles.

Where can I read the official tribunal order for case 9029981?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/9497660-Tribunal_Order.pdf.

What was Tenancy Tribunal case 9029981 about?

The tribunal order states: [The party] must pay Body Corporate 346799

How much money was awarded in case 9029981?

Body Corporate Secretary Charges: $1,090.20 awarded to landlord; Legal Costs: $17,870.19 awarded to landlord

What type of tenancy dispute was case 9029981?

The primary dispute was Unit Titles.

Where can I read the official tribunal order for case 9029981?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/9497660-Tribunal_Order.pdf.

Auckland Central, Auckland Tenancy Tribunal Case 9029981 — Unit Titles

Reasons

Claims and awards in Tenancy Tribunal application 9029981. Amounts reconciled from the published order (claims sum and net total). Verify on MoJ.
Claim	Landlord	Tenant	Reason
Body Corporate Secretary charges	$1,090.20		Body Corporate Secretary charges
Legal costs	$17,870.19		Legal costs

The hearing took place on 23 February 2023. My decision and reasons were given on 1 March 2023.

In that decision, I reserved my decision on costs to await the District Court appeal of the Tribunal’s decision(s) on costs in Body Corporate 346799 v Gueirard & Vu [2023] NZTT Auckland 9027641 and other related cases. That decision was released on 25 September 2023.

The Tribunal gave the parties the opportunity to make further submissions on costs. On 11 October 2023, the applicant advised it had no further submissions to make. The respondents were given until 20 October 2023 to make submissions but have made no further submissions.

The body corporate seeks costs. It seeks its body corporate secretary’s costs for debt collection attendances of $1,090.20.

It seeks legal costs of $12,600.43 for attendances up to 27 July 2022 and legal costs of $5,269.76 for additional legal costs up to 22 February 2023. The total amount sought for legal costs is $17,870.19.

The Body Corporate is entitled to recover any reasonable costs incurred by it in collecting unpaid levies as a debt due by the owners to the body corporate: see s 124 of the UTA.

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.

In the Gueirard mentioned above, the adjudicator awarded significantly less costs against the other unit owners than the body corporate sought. 1 However, the body corporate successfully appealed that decision. The District Court granted the body corporate’s full costs as sought: Body Corporate 346799 v Gueirard & Vu. 2

This latest District Court decision is but one of several that have reversed Tribunal costs decisions involving the body corporate’s solicitors. In Body Corporate 45131 v 88 Chi Limited, 3 the Court was robust in its criticism of the Tribunal: [24] I am conscious this approach and outcome may not reflect the personal preferences of the adjudicator, who in an unusual decision made it clear that he does not agree with the decision of the District Court in Sherry. Hopefully I have been able to give some clarity as to what is required. Once is to tread a fine line, twice is to cross it.

In summary then, under 124 of the UTA the body corporate can recover not only the levy, but “any reasonable cost incurred in collecting the levy”. These costs can include full solicitor client costs.

The Tribunal should order the full legal costs reasonably incurred for levy recovery. That means the Tribunal has limited scope to reduce costs. For the Tribunal to reduce costs, the costs sought must be demonstrably unreasonable. 1 Body Corporate 346799 v Vu [2023] Auckland 9027641. 2 [2023] NZDC 19645 3 [2023] NZDC 9036

The work that costs are claimed for in this case was reasonably necessary. The amount the body corporate’s law firm charged for the necessary work was reasonable in that and could not be criticised as excessive in terms of the New Zealand Law Society rules of conduct.

In reviewing the time sheets in light of the work required, the costs charged sought are not “clearly exorbitant”. 4 The costs are not demonstrably unreasonable.

Therefore the full solicitor client costs should be awarded as should the body corporate secretary’s costs.

The body corporate’s remaining costs are ordered as sought.

Claims and awards in Tenancy Tribunal application 9029981. Amounts reconciled from the published order (claims sum and net total). Verify on MoJ.
Claim	Landlord	Tenant	Reason
Body Corporate Secretary charges	$1,090.20		Body Corporate Secretary charges
Legal costs	$17,870.19		Legal costs

Order

[The party] must pay Body Corporate 346799 $18,960.39 immediately, calculated as follows: DescriptionsApplicant Body Corporate Secretary charges$1,090.20 Legal costs$17,870.19 Total award$18,960.39

Reasons

The hearing took place on 23 February 2023. My decision and reasons were given on 1 March 2023.
In that decision, I reserved my decision on costs to await the District Court appeal of the Tribunal’s decision(s) on costs in Body Corporate 346799 v Gueirard & Vu [2023] NZTT Auckland 9027641 and other related cases. That decision was released on 25 September 2023.
The Tribunal gave the parties the opportunity to make further submissions on costs. On 11 October 2023, the applicant advised it had no further submissions to make. The respondents were given until 20 October 2023 to make submissions but have made no further submissions.
The body corporate seeks costs. It seeks its body corporate secretary’s costs for debt collection attendances of $1,090.20.
It seeks legal costs of $12,600.43 for attendances up to 27 July 2022 and legal costs of $5,269.76 for additional legal costs up to 22 February 2023. The total amount sought for legal costs is $17,870.19.
The Body Corporate is entitled to recover any reasonable costs incurred by it in collecting unpaid levies as a debt due by the owners to the body corporate: see s 124 of the UTA.
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.
In the Gueirard mentioned above, the adjudicator awarded significantly less costs against the other unit owners than the body corporate sought. 1 However, the body corporate successfully appealed that decision. The District Court granted the body corporate’s full costs as sought: Body Corporate 346799 v Gueirard & Vu. 2
This latest District Court decision is but one of several that have reversed Tribunal costs decisions involving the body corporate’s solicitors. In Body Corporate 45131 v 88 Chi Limited, 3 the Court was robust in its criticism of the Tribunal: [24] I am conscious this approach and outcome may not reflect the personal preferences of the adjudicator, who in an unusual decision made it clear that he does not agree with the decision of the District Court in Sherry. Hopefully I have been able to give some clarity as to what is required. Once is to tread a fine line, twice is to cross it.
In summary then, under 124 of the UTA the body corporate can recover not only the levy, but “any reasonable cost incurred in collecting the levy”. These costs can include full solicitor client costs.
The Tribunal should order the full legal costs reasonably incurred for levy recovery. That means the Tribunal has limited scope to reduce costs. For the Tribunal to reduce costs, the costs sought must be demonstrably unreasonable. 1 Body Corporate 346799 v Vu [2023] Auckland 9027641. 2 [2023] NZDC 19645 3 [2023] NZDC 9036
The work that costs are claimed for in this case was reasonably necessary. The amount the body corporate’s law firm charged for the necessary work was reasonable in that and could not be criticised as excessive in terms of the New Zealand Law Society rules of conduct.
In reviewing the time sheets in light of the work required, the costs charged sought are not “clearly exorbitant”. 4 The costs are not demonstrably unreasonable.
Therefore the full solicitor client costs should be awarded as should the body corporate secretary’s costs.
The body corporate’s remaining costs are ordered as sought.

Tenancy Tribunal case 9029981 — Unit Titles in Auckland Central, Auckland

At a glance

Tenancy Tribunal case 9029981 — Unit Titles in Auckland Central, Auckland

At a glance

Claims & awards

Order

Reasons

Topics & place

Residential Tenancies Act sections

Key findings

Frequently asked questions

Claims & awards

Order

Reasons

Topics & place

Residential Tenancies Act sections

Key findings

Frequently asked questions