Published tribunal order
Tenancy Tribunal case 9056904 — Tenancy dispute in Parnell, Auckland
Decided 12 Dec 2024 · Published 12 Dec 2024 · Application 9056904
Landlord favoured
- Unit Titles
Order
- Matthew Robert Collis must pay Body Corporate 164955 $11,176.26 immediately, calculated as follows: DescriptionsApplicantRespondent Levy$7,756.63 Interest$491.35 Legal costs (Morgan Coakle)$1,418.78 Crockers costs$584.00 Appearance fees: Morgan Coakle$224.25 Appearance fees: Crockers$201.25 Filing Fee$500.00 Total award$11,176.26 Total payable by Respondent to Applicant $11,176.26
Reasons
- Ms Elizabeth Tobeck, counsel from Morgan Coakle, and Ms Vanessa Stone from Crockers Body Corporate Management (Crockers), appeared for Body Corporate 164955 (the body corporate). There was no appearance by Mr Collis, the unit owner. The start of the hearing was delayed, but Mr Collis did not attend. Being satisfied that he had been notified, the hearing proceeded in his absence.
- 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) of the Unit Titles Act 2010 (the UTA).
- The body corporate has determined the levies payable, and the 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) of the UTA. The body corporate has provided records to prove the amount claimed. The body corporate’s evidence includes copies of the relevant minutes of the Annual General Meeting (AGM), and the invoices sent to the unit owner.
- In her oral submissions at the hearing, Ms Tobeck referred to clause 12 of the AGM minutes for the meeting of 27 June 2023, where the levy was determined, and due dates were set. It was noted that the owner had made two payments totalling $900.00, which were taken into account.
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 of the UTA.
- The body corporate has resolved to charge interest at 10% per annum on unpaid levies. Ms Tobeck refers to Clause 13 of the AGM minutes, which sets out the body corporate’s levy collection procedure. This authorises Crockers to recover unpaid levies owed by the owner, together with interest and reasonable collection costs, using the Crockers’ collection procedures, as posted on its website (a copy of which was provided).
- 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 note the submissions provided by Ms Tobeck in support of the costs claimed. Regarding the legal costs, and with reference to the invoice detailing the work involved, I am satisfied that these costs are reasonable. In terms of Crockers’ debt collection costs, I accept that these include the preparation and sending of demand letters, time spent by Crockers attempting to contact the owner, dealing with other correspondence in relation to the debt, and monitoring accounts for payment. Crockers sent four letters, in accordance with its debt collection procedures. There was other correspondence, including emails, and phone calls to the owner.
- Overall, I am satisfied that the costs ordered above are reasonable. Filing fee
- Because the body corporate has succeeded with the claim, I have reimbursed the filing fee. See Section 176(1) of the UTA and section 102(4) of the Residential Tenancies Act 1986.