Published tribunal order
Tenancy Tribunal case 9061844 — Tenancy dispute in Eden Terrace, Auckland
Decided 1 Apr 2025 · Published 1 Apr 2025 · Application 9061844
Landlord favoured
- Costs
- Interest
- Unit Titles
Order
- Ziyi Zou must pay Body Corporate 354782 the sum of $75,039.86 immediately, calculated as follows: DescriptionsApplicantRespondent Annual levies$16,475.61 Roofing levies$41,483.97 Debt collection costs$2,392.00 Costs: Legal fees$15,863.91 Interest$2,792.58 Minus payment received $3,968.21 Total award$79,008.07$3,968.21 Total payable by Respondent to Applicant $75,039.86
Reasons
- The Tribunal must consider an application from a body corporate seeking levies and associated costs from the unit owner.
- There was no appearance by the unit owner at the hearing today, 1 April 2025. The Body Corporate was legally represented at the hearing by Ms Hoogerbrug. Ms Hoogerbrug advised that over the course of pursuing the debt, and with this application to the Tribunal, the unit owner has not contacted the representative.
- I have no reason to believe that the unit owner has not been notified of the hearing, so I will proceed to consider the application in their absence.
- The respondent unit owner is the owner of unit 2U, located at 184 Symonds Street, Eden Terrace, Auckland.
- Over the course of time levies have been raised for various needs, including the operating levy, and also for roof maintenance. Ms Hoogerbrug has filed copies of the relevant Body Corporate minutes, and the invoices from which the levies were raised for payment. The Body Corporate’s position is that the unit owner has fallen behind in the payments, so now seeks an order from the Tribunal to recover the debt.
- I record for completeness that the unit owner has not filed any submission with the Tribunal, and the debt, to that extent, is not disputed. Following my review of the file, I cannot see any evidence of the unit owner disagreeing with the amounts raised.
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.
- In this case the levies claimed are: a. Operational levies $16,475.61; and b. Roof replacement $41,483.97
- 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.
- The Body Corporate has confirmed that the unit owner has paid some of the debt, being a total of $3,968.21. I note the last payment from the unit owner was in May 2021.
- I am satisfied that the unit owner is liable to pay the 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 has resolved to charge interest on unpaid levies. The Body Corporate has proved the amount of interest owing from the due date to the hearing date, which is $2,792.58.
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 costs claimed are $2,392.00 in costs for the Body Corporate Managers efforts to recover the debt, and legal fees of $15,863.91. Those costs include the Tribunal filing fee of $500.00 1 .