Published tribunal order
Tenancy Tribunal case 9047404 — Tenancy dispute in Parnell, Auckland
Decided 1 Nov 2023 · Published 1 Nov 2023 · Application 9047404
Landlord favoured
- Costs
- Interest
- Unit Titles
Order
- Matthew William Clark and Andrew Yung-Tai Stoddard must pay Body Corporate 180455 $25,569.71 immediately, calculated as follows: DescriptionsApplicantRespondent Levy$9,533.51 Costs: Enforcement costs on previous Tribunal order $9,296.00 Costs: S.124 costs$776.25 Filing Fee$500.00 Costs: S.124 costs since filing$1,492.00 Costs: s.124 hearing preparation costs$388.13 Costs: Appearance at hearing$129.38 Interest: On unpaid levies to 1 November 2023 $3,408.13 Interest: On Precontract Disclosure fee to 1 November 2023 $46.31 Total award$25,569.71 Total payable by Respondent to Applicant $25,569.71
Reasons
- The body corporate attended this remote teleconference hearing and was represented by Mr Leishman.
- The owner Andrew Stoddart was represented by Ms White.
- Telephone calls were made to the owner Matthew Clark on the number provided at the allocated time. The call went to voicemail. The Tribunal may hear matters in the absence of a party where satisfied that notice of the hearing has been given. I am so satisfied.
- 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.
- The claim includes a fee incurred by the owners in seeking precontract disclosure in August 2022 in the sum of $396.75.
- Ms White, on behalf of Mr Stoddart, explained that her client had simply been unaware of the levies owing as the unit finances were controlled by Mr Clark. Unfortunately for Mr Stoddart, the respective owners of the unit remain jointly and severally liable for the debt.
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. These costs include collection costs incurred in attempting to enforce the Tenancy Tribunal order dated 11 March 2020 for $11,388.47.
- I have reduced the appearance fee for todays hearing to $129.38 to reflect the actual hearing time.
- 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.