Published tribunal order
Tenancy Tribunal case 9046284 — Tenancy dispute in Mangere, Mangere
Decided 4 Dec 2023 · Published 4 Dec 2023 · Application 9046284
Landlord favoured
- Costs
- Interest
- Unit Titles
Order
- Karteek Sen must pay Body Corporate 112081 $14,767.57 immediately, calculated as follows: DescriptionsApplicantRespondent s.126 On charges$7,150.14 Costs: Body Corporate Secretary debt collection $632.50 Costs: Body Corporate Secretary legal handover $287.50 Costs: S.124 costs$4,560.04 Costs: Solicitors appearance fee$115.00 Filing Fee$500.00 Interest: to 27 November 2023$1,522.39 Total award$14,767.57 Total payable by Respondent to Applicant $14,767.57
Reasons
- Both parties attended this remote teleconference hearing on 27 November 2023.
- The body corporate has applied for recovery of unpaid levies, on charges, interest, costs and the filing fee from the unit owner.
- The application for unpaid levies was withdrawn, the levies having been paid.
Does the Unit Owner owe the debt claimed?
- A unit owner must pay all money expended on repairs or other related work where the work is substantially for the benefit of 1 unit only. The Body Corporate has provided invoices to the owner in relation to work carried out on Unit H which was substantially for the benefit of the owner See section 126 Unit Titles Act 2010. Section 126(2) Unit Titles Act 2010 provides that any expense incurred by the body corporate in doing the repair, work or act is recoverable by it as a debt so far as the repairs benefit any unit by a distinct and ascertainable amount. The invoice provide details which are distinct and ascertainable
- The body corporate has provided records to prove the amount claimed and I prefer the evidence and in particular the documentary evidence provided by the body corporate.
Is the Unit owner liable for interest?
- If a unit owner fails to pay a debt by the due date, interest accrues on the unpaid balance. A body corporate may charge interest up to 10% per annum. See section 128(1) Unit Titles Act 2010.
- The body corporate has resolved to charge interest at 10% per annum on unpaid expense. 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 expenses 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 amount, objectively assessed, be paid by a defaulting unit owner. I am satisfied that the costs ordered above are reasonable.
- As the body corporate has succeeded with the claim, I have reimbursed the filing fee. Section 176(1) Unit Titles Act 2010 and section 102(4) Residential Tenancies Act 1986.