Published tribunal order
Tenancy Tribunal case 9048524 — Unit Titles in Auckland Central, Auckland
Decided 12 Feb 2024 · Published 12 Feb 2024 · Application 9048524
Mixed / unclear
- Unit Titles
- Costs
Order
Spring Wind Trustee Limited must pay Body Corporate 338356 $2,297.54 immediately, calculated as follows: Descriptions Legal costs$1,395.04 Filing Fee$500.00 Costs: body corporate debt collection charges $402.50 Total award$2,297.54
Reasons
- Only counsel for the body corporate attended the hearing.
- 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 of $1,693.19 and $1,427.99 by their due dates on 20 December 2022 and 31 January 2023 respectively.
- The body corporate then filed these proceedings on 30 October 2023 for recovery of unpaid levies, interest, and costs, including the filing fee.
- On 17 November 2023 and 4 December 2023, the unit owner paid the outstanding levies claimed.
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 waived their right to claim interest that accrued on the previous outstanding levies.
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 legal and body corporate debt collection costs ordered above are reasonable.
- Because 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.