Published tribunal order
Tenancy Tribunal case 9059644 — Tenancy dispute in Auckland Central, Auckland
Decided 19 Mar 2025 · Published 19 Mar 2025 · Application 9059644
Landlord favoured
- Leaks
- Unit Titles
Order
- Leon Paul Robinson must pay Body Corporate 373645 $39,575.39 immediately, calculated as follows: DescriptionsApplicantRespondent Overdue levies$10,913.32 Overdue metered charges$1,418.87 Overdue oncharges$7,152.61 Section 124 / 127 costs including GST and disbursements (First Claim) $13,659.35 Section 124 costs including GST and disbursements (Second Claim) $4,966.64 Appearance at hearing ($250.00 per hour x 1 hour approximately, plus GST) $287.50 Filing Fee$500.00 Interest to 19 March 2025$677.10 Total award$39,575.39 Total payable by Respondent to Applicant $39,575.39
Reasons
- The representative for the applicant attended the hearing which was held by teleconference. The Tribunal was unable to contact the respondent on the contact number provided. I am satisfied that adequate service of the hearing notice had been completed and deemed it reasonable to proceed with the hearing in the respondent’s 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 and additional charges 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 Unit Owner also owes additional charges under sections 125, 126, and 127 of the Act. The metered electricity charges were properly incurred and remain outstanding. Likewise, oncharges relating to necessary repairs, including leak issues, shower repairs, waterproofing, and smoke detector reinstallation, were properly imposed under sections 126(2) and 127(2) of the Act. These oncharges, are validly recoverable.
- The Body Corporate has provided records to prove the amounts 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.
- The Unit Owner was previously subject to a Tenancy Tribunal order (NZTT 9044364) dated 15 September 2023 (the First Order). While that order addressed certain outstanding amounts, further enforcement costs were incurred by the Body Corporate in securing compliance. A High Court Sale Order was sealed on 12 April 2024, but enforcement costs beyond that order were not previously adjudicated. Under section 127 of the Act, these costs remain recoverable.
- Legal precedent supports the recovery of such costs. In Body Corporate 331094 v Smith [2015] NZDC 17745, Judge Harrison held that legal fees incurred in pursuing payment of levies were recoverable under section 127 of the Act. Similarly, in Kang v Body Corporate 137295 NZDC 30820, Judge Sharp upheld a Tenancy Tribunal decision that allowed the recovery of costs incurred in enforcing an order. These rulings confirm that the Body Corporate is entitled to reimbursement for its expenses in seeking payment from the Unit Owner.
- I am satisfied that the costs ordered above are reasonable.
- As 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.