Published tribunal order
Tenancy Tribunal case 9049484 — Tenancy dispute in Tawa, Wellington
Decided 10 Jul 2024 · Published 10 Jul 2024 · Application 9049484
Landlord favoured
- Costs
- Interest
- Unit Titles
Order
- Li-Ching Chen must pay Body Corporate 503772 $5,881.86 immediately, calculated as follows: DescriptionsApplicantRespondent Interest: on unpaid levies$349.17 Body corporate debt collection costs$287.50 Legal costs$4,434.69 Legal costs appearance at Tribunal$310.50 Filing fee$500.00 Total award$5,881.86 Total payable by Respondent to Applicant $5,881.86
Reasons
- Monique MacGregor appeared on behalf of Price Baker Berridge instructed by the Body Corporate. Li-Ching Chen was called on the number provided. The first call immediately disconnected when I identified myself. I called again and a male said he understood English and he was with Li-Ching Chen. The male asked that I call back because he was tired but I told him the matter was scheduled for hearing and would be proceeding. When I asked the male to identify himself, the call was disconnected.
- The absence of a party does not prevent the matter from being heard and determined.
- The Body Corporate has applied for recovery of unpaid levies, interest, costs and the filing fee from the unit owner.
- On 18 April and 30 April 2024, Li-Ching Chen paid $2,579.56 and $5,518.19 respectively which paid the outstanding levies in full and left a credit of $632.50. This was applied to unpaid interest charges leaving a balance of $349.17 to 30 April 2024. The other costs remain outstanding.
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 30 April 2024.
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.
- The law about recovery of legal costs was further clarified in Body Corporate 346799 v Gueirard & Vu [2023] NZDC 19645. A copy of this decision was provided with the application.
- I have considered the time sheets submitted by Price Baker Berridge and I am satisfied the work done by them was reasonably necessary and the amount charged was reasonable when objectively assessed. I have reduced the appearance costs to $310.50 for one hour.
- I also find that the costs incurred by the Body Corporate in recovery of the debt are reasonable. This included monitoring payments and default of the levies, drafting and sending reminder notices, and instructing Price Baker Berridge.
- As the Body Corporate has succeeded with the claim, Li-Ching Chen must pay the filing fee. Section 176(1) Unit Titles Act 2010 and section 102(4) Residential Tenancies Act 1986.