Published tribunal order
Tenancy Tribunal case 9055904 — Tenancy dispute in Auckland Central, Auckland
Decided 12 Feb 2025 · Published 12 Feb 2025 · Application 9055904
Landlord favoured
- Costs
- Interest
- Unit Titles
Order
- Wan Ha Ku must pay Body Corporate 519465 $20,094.43 immediately, calculated as follows: DescriptionsApplicantRespondent Levy$13,228.84 Costs: Body Corp Secretary charges$920.00 Costs: s.124 Solicitor's charges$4,079.34 Costs: Solicitor's charges for hearing time $287.50 Filing Fee$500.00 Interest: From 1 September 2023 to 12 February 2025 $1,078.75 Total award$20,094.43 Total payable by Respondent to Applicant $20,094.43
Reasons
- The Body Corporate attended the video hearing and was represented by Ms Dobson.
- The owner did not attend by Teams video link. Telephone calls were made to the owner on the number provided at the allocated hearing time. The calls could not be connected.
- The owner resides in Taiwan and has a physical address for service in Taiwan as his address for service. That address is registered with the Body Corporate as an address for service for the owner. The owner does not have an agent in New Zealand. The Body Corporate also has an email address for the owner. All correspondence with the owner is sent to the physical address and the email address. The owner purchased the premises in 2018. There has been no “bounce back” for communication sent to the owner’s email address. I am satisfied in those circumstances that the levy demands and notices relating to these proceedings have been served on the owner.
- 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.
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. I have reduced the hearing fee to $287.50 to take into account the actual hearing time.
- As the body corporate has succeeded with the claim, I have ordered the owner to reimburse the filing fee. Section 176(1) Unit Titles Act 2010 and section 102(4) Residential Tenancies Act 1986.