Published tribunal order
Tenancy Tribunal case 9047744 — Unit Titles in Auckland Central, Auckland
Decided 4 Jul 2024 · Published 4 Jul 2024 · Application 9047744
Mixed / unclear
- Unit Titles
Order
Norma Edwige Turia Johnston (also known as Norma Edwige Turia Renvoye) must pay Body Corporate 346799 $98,153.88 immediately, calculated as follows: DescriptionsApplicant Unpaid remedial levies$84,818.87 Body corporate manager$1,090.20 Legal costs to hearing$7,620.19 Appearance fee, counsel$287.50 Interest on unpaid levies$4,337.12 Total award$98,153.88
Reasons
- Conall MacFadyen, a solicitor from Price Baker Berridge, attended the hearing for the body corporate.
- The unit owner did not attend.
- The body corporate has applied for recovery of unpaid levies, interest, and costs from the unit owner. Late application for adjournment
- The unit owner’s daughter, Mme Moëa, emailed the Tribunal late last night to ask for the hearing to be adjourned. She states, the unit owner is in Tahiti and cannot attend because she is physically and mentally incapacitated.
- The Tribunal declined to adjourn the matter but invited Mme Moëa to attend the hearing for her mother by telephone.
- The Tribunal started the hearing late to accommodate Mme Moëa’s possible telephone attendance, but she did not attend. Mme Moëa later emailed the Tribunal to explain that she does not speak English. That being so, and no interpreter having been arranged, Mme Moëa could not have meaningfully participated in the hearing in any event.
- I note that this matter had a previous hearing date of 4 March 2024. The Tribunal adjourned that hearing at the unit owner’s request so the unit owner could instruct counsel. In its directions of 1 March 2024, the Tribunal said: The unit owner's request for an adjournment to instruct counsel is granted. The Body Corporate is represented by counsel so that opportunity must be provided to the other party. Furthermore, the amount of the claim is significant. As both parties will be represented by counsel the next hearing will be in person. It is unlikely that any further adjournments will be granted.
- It is evident that the unit owner has not instructed counsel. Rather, at the 11 th hour, the unit owner again seeks a delay, this time to appoint a guardian.
- I cannot see that a further adjournment is in anyone’s interest. As will be discussed below, the evidence of the unit owner’s debt is cogent, and the unit owner has offered no defence. All that a further adjournment is likely to achieve for the unit owner is significant additional costs to themselves.
- After the hearing, but before finalising its decision, the Tribunal received a further email form Mme Moëa, saying: we need to put in place a guardianship procedure in order to appoint a property manager in order to be able to sell the apartment and pay the final invoices. looking forward to reading you.
- That email tends to confirm that proceeding with the hearing is in the unit owner’s interests.
- The application for adjournment is declined.
Does the unit owner owe the levies claimed?
- A unit owner must pay all body corporate levies and outgoings payable for the unit. 1
- The unit’s apartment building, Victopia, was only built about 20 years ago but regrettably had serious defects requiring remediation. This has led to a High Court Scheme for the building’s remediation. The body corporate has levied the unit owners for contributions pursuant to the High Court Scheme 2 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 their levies by that date. 3
- The body corporate has provided records that prove that the unit owner has still not paid $84,818.87 for the levies.
- An order is made in that amount.
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 cent per annum. 4
- The body corporate has resolved to charge interest at 10 per cent per annum on unpaid levies.
- The body corporate provided a summary calculating the interest due on the unpaid levies from the due date to the hearing date.
- The body corporate has proved the amount of interest the unit owner owes. An order is made accordingly. 1 Unit Titles Act 2010 (UTA), ss 80(1)(f) and 121(1). 2 Under UTA, s 74. 3 UTA, s 124. 4 UTA, s 128.
Is the unit owner liable for costs?
- 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. 5
- The body corporate’s manager, Body Corporate Administration Limited, has charged the body corporate $1,090.20 for its unsuccessful efforts to collect the levies.
- The body corporate’s lawyers, Price Baker Berridge, have invoiced the body corporate $7,620.19 for its attendances and disbursements to recover the unit owner’s unpaid levies.
- Price Baker Berridge will invoice the body corporate a further $287.50 for Mr MacFadyen’s appearance today.
- The costs sought are reasonable. The Tribunal orders the unit owner to pay them. Addendum
- The Tribunal hopes that this order will help the unit owner and her family to finalise this claim and close what must have been a painful chapter of events for them.